Michael McGrath (Cork South Central, Fianna Fail)
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81. To ask the Minister for Finance the United Kingdom financial institutions who passport their services into Ireland under European Economic Area rules; the potential implications for these activities from the United Kingdom leaving the European Union; and if he will make a statement on the matter. [19005/16]

Michael Noonan (Limerick City, Fine Gael)
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The result of the Referendum means that the people of the UK have declared their wish to leave the EU.  It is important to be clear: the UK has not for now left the EU.  Until the Article 50 negotiations are concluded the UK remains a full Member, with all of its existing rights and obligations. The result marks the beginning of a new phase of negotiated withdrawal one that is expected to take place over at least two years and possibly longer. Separate negotiations on the new relationship between the UK and the EU will also take place, if that is what the UK seeks. The key priority for Government is to protect and promote Ireland's interests to the greatest extent possible.  Based on the analysis carried out by all Departments, including the Department of Finance, a framework has been developed on a whole of Government basis to identify contingencies that may arise in the days, weeks and months that follow the outcome of the UK referendum. 

In it's latest Macro Financial Review (MFR) the Central Bank noted that the effects on the profitability and business models of Irish-based financial institutions, including banks and insurers, could be material and could vary across firms and sectors depending on the nature of the new relationship agreed between the UK and EU and their exposure to UK markets. The Central Bank has been engaging with firms across all parts of the financial sector, with a particular focus on the firms with the largest UK exposures, to ensure they are prepared for risks associated with the UK leaving the European Union.  

In terms of the implications of the United Kingdom leaving the European Union on the passporting regime, it is unclear at this time and will depend on the negotiations on the UK's future relationship with the EU.  The situation is complex as financial institutions in Ireland can passport services to the UK while financial institutions in the UK can passport services into Ireland.  The range of possible new arrangements is wide and it is too early to speculate at this stage.

The Central Bank maintains lists of firms which have notified it of the intention to offer services in Ireland through a passporting arrangement. These lists are available at and are maintained by industry sector (i.e. Credit Institutions, Insurance Undertakings etc.).

In that MFR it was noted that an exit from the EU could have implications for insurance firms located in Ireland conducting business in the UK market, while the possible removal of UK competitors may benefit other firms operating in Ireland. Premium volumes written by life and non-life firms on an "outward" and "inward" basis between Ireland and the UK in 2014 were €3.8 billion and €8.6 billion, respectively. 

The Department of Finance and the Central Bank do engage regularly on material issues relevant to the financial services sector and will continue to do so as the process of withdrawal progresses.