Written answers

Thursday, 24 October 2019

Department of Finance

Financial Services Regulation

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

80. To ask the Minister for Finance the number of financial service providers that have not got the relevant authorisation from the Central Bank in the event the UK leaves the European Union by type of financial services provider in tabular form; and if he will make a statement on the matter. [44162/19]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Central Bank has received more than 100 Brexit-related applications for authorisation. These include applications both to establish new legal entities and from existing entities seeking to extend their current authorisation. I am advised that the Central Bank does not comment on individual applications for authorisation.

The Central Bank is working to ensure that firms that have applied, and meet the Bank's requirements, are authorised prior to Brexit. The Central Bank has a gatekeeper role to ensure only firms that meet its standards (including transitional requirements) are authorised.  In this regard, it should be noted that the Single Supervisory Mechanism is the competent authority for banking authorisations.

The Regulatory Service Standards Performance Report for H1 2019 is published on the Central Bank website. These service standards are designed to inform stakeholders with regard to the length of time certain regulatory processes will take. The report is available at: https://www.centralbank.ie/regulation/how-we-regulate/authorisation 

As set out in the Central Bank’s Brexit FAQ - Financial Services Firms (), firms that meet the Bank's requirements will be authorised in a timely manner. There may be a delay for those firms that applied late or failed to plan, which may cause some disruption, as they may not conduct business during this time. All firms that have sought authorisation, and have been deemed unlikely to be authorised by 31 October have been advised of same.

In the event of a no-deal Brexit, where a firm does not have an authorisation in place, the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 provides for a temporary run-off regime for insurance.  UK/Gibraltar insurers and insurance intermediaries, that satisfy the conditions of the legislation, will be able to continue the administration of both life and non-life insurance policies written in Ireland after Brexit.  This “run-off” regime applies for a maximum period of three years from the date of Brexit.  It should be noted that, under this regime, insurers and insurance intermediaries cannot write any new policies or renewals unless they receive authorisation in an EU/EEA Member State (including Ireland).


No comments

Log in or join to post a public comment.