In response to the significant increase in the number of authorisation queries from UK based insurers, the Central Bank of Ireland (the “Central Bank”) has increased its workforce by more than a quarter.
Cyril Roux, Deputy Governor of the Central Bank, in his speech at the Institute of International and European Affairs on 1 December 2016, indicated that the Central Bank intends to further expand its resources, particularly in the Insurance Supervision Department, as it is committed to meeting the growing demands for its services;
“The Irish financial sector is set to grow, and quite possibly to a significant extent. The Central Bank is committed to meeting the challenge. Our workforce planning for next year reflects the additional resources needed to deal with applications that will come our way, and we have built in contingency should the need arise.”
Cyril Roux stated that potential applicants will find the Central Bank to be engaged, efficient, open, and rigorous. The Central Bank is well-respected as an independent regulator across the EU and will continue to implement a robust authorisation regime for insurance and reinsurance companies seeking to establish themselves in Ireland in order to provide cross-border services across the EU. The mandate of the Central Bank is ‘safeguarding stability and protecting consumers’ and each application for authorisation made to the Central Bank will be considered in light of this policy. In order for this mandate to be effective, those responsible for making key strategic decisions for the company must be capable of falling within the Central Bank’s enforcement regime.
The Central Bank are committed to providing a transparent and predictable regulatory regime. Ultimately, the increased capacity of the Central Bank will ensure that the increased activity in the Irish financial services sector following Brexit is accommodated for and the level of regulation and supervision for financial services entities operating in and from Ireland is maintained.
By Darren Maher of Matheson.