Cork Credit - Central Bank of Ireland Issues Warning on Unauthorised Firm

Good morning,On behalf of the Central Bank of Ireland, it is a pleasure to welcome you all to this joint FinCoNet and Central Bank of Ireland international seminar.1  A particular welcome to the FinCoNet delegates from 42 different jurisdictions and representatives from the OECD and World Bank who we have been delighted to host over the course of this week for the 2025 Annual General Meeting of FinCoNet.  And congratulations to FinCoNet Chair, Juliana Mozachi-Sandri (Central Bank of Brazil) and Vice Chair, Frank Lofranco (Financial Consumer Agency of Canada) as well as the OECD Secretariat (and Central Bank staff) for such a successful Annual General Meeting. At this morning’s event we welcome a diverse range of stakeholders, international regulators, civil society groups, consumer advocates, industry representatives, trade associations, as well as colleagues from the Department of Finance and other public sector bodies.  I am delighted to welcome the Chair of the Central Bank’s Consumer Advisory Group, Isolde Goggin, the Chair of Ireland’s Competition and Consumer Protection Commission, Brian McHugh, and Ireland’s Financial Services and Pensions Ombudsman, Liam Sloyan. There is an Irish expression that seems appropriate for today’s event: “Ní neart go cur le chéile”.  It means “There is no strength without unity". This is perhaps never more important than today in the field of financial consumer protection, as we work to solve problems that are increasingly complex, interconnected and transcend national borders. A whole-of-system, unified, and internationally coordinated approach is required if we are to be successful in supporting better consumer outcomes. FinCoNet is admirably placed to play an important role in this global context. I remember FinCoNet’s founding meeting in 2013, chaired by a former Central Bank of Ireland colleague, Bernard Sheridan and attended by others I see here today. Those founding members established FinCoNet with the mission to promote sound market conduct and strong consumer protection through effective supervisory standards and sharing of best practices among supervisors around the world. Since that founding meeting, FinCoNet has grown from strength to strength. Today, FinCoNet member regulators supervise financial services provided to just over half the people on the planet.  As a founding member of FinCoNet, the Central Bank of Ireland is therefore especially proud to host this year’s Annual General Meeting.  This has involved 3 days of events with over 86 delegates from 42 different jurisdictions attending in person.  Reflecting the digital age in which we live, we have had strong participation virtually.  In total this week, we have hosted over 450 delegates and domestic stakeholders from financial services firms, consumer and industry bodies, academia and public life, both onsite and online.  Over the course of the week discussions have included digitalisation and oversight of AI, conduct supervision in retail credit, cost-of-living and the fair treatment of consumers, as well as an industry workshop on Buy Now Pay Later.   My thanks to Banking and Payments Federation Ireland and the regulated firms involved for taking part in that workshop.  Thanks also to Juliana Mozachi-Sandri and to Magda Bianco (Banc d’Italia) for their participation in our Financial System Conference earlier this week, bringing the benefit of their international experience to our discussions. I also congratulate FinCoNet on the theme they have chosen for today’s event: Strengthening Financial Consumer Protection and Supervision in an Increasingly Digitalised World.  Digital innovation is supporting how consumers engage and access financial services, and it brings many benefits.  It also brings new risks. International standards, such as the G20/OECD High Level Principles on Financial Consumer Protection have an important role to play here. They offer a roadmap for countries to improve existing approaches and develop new ones in the face of digital transformation. Here in Ireland, the Central Bank is implementing the welcome recommendations from the OECD’s 2024 review of our supervisory functions. The implementation of these recommendations is supporting the modernisation of our supervisory approach.  Next week, the Central Bank of Ireland will host a virtual event for FinCoNet members to share our experience of the more integrated supervisory approach we have adopted, into which we are incorporating these important OECD findings.In Europe, such international standards are implemented and supported by a mix of European and national initiatives, including the EU digital finance package. This includes the Markets in Crypto Assets Regulation (MiCAR), the Digital Operational Resilience Act (DORA) and the AI Act.   These frameworks aim to ensure effective responses to emerging innovations and risks while supporting benefits to consumers.At domestic level, the Central Bank of Ireland will bring a modernised Consumer Protection Code into force in March 2026. It includes provisions to require regulated financial service providers to ensure technology they use is designed and implemented with a customer focus and not in a way that seeks to unfairly exploit or take advantage of consumers to their detriment. I believe that, in the period ahead, regulatory regimes such as these will be key to maintaining consumer trust and confidence in digital financial services.  FinCoNet is making an important contribution in this endeavour, since in the end of the day, our regulatory frameworks will only be as good as how we supervise and enforce them. As digitalisation transforms financial services across the world, it also brings into sharper relief the need to have a shared view of what we expect financial services to deliver for its users, what ‘good looks like’ in terms of substantive consumer outcomes. I welcome therefore the working definition of ‘financial well-being’ published in the 2024 G20 Policy Note and we support the work of the OECD Working Party on Financial Consumer Protection, Education and Inclusion to further develop and measure this concept. In 2026, this will include a joint meeting of that Working Party and FinCoNet to further advance our thinking on this and other aspects of financial consumer protection, education and inclusion. Let me conclude there. I wish you all the best in your discussions today. Your expertise and insights will be crucial if we are to be successful in our collective endeavour of ensuring a financial system where innovation thrives in an environment that secures consumers’ best interests. I also look forward to FinCoNet continuing to go from to strength.Thank you. [1]  My thanks to Mark Kavanagh, Verona Hanlon and Bairbre Keogh for their assistance in preparing these remarks. 

Central Bank of Ireland welcomes today’s announcement by the Tánaiste and Minister for Finance that regulations relating to the Finance (Provision of Access to Cash Infrastructure) Act will come into effect this week.As required by the Act, the Minister for Finance prescribes the percentage of the population that must be within a specified distance of an ATM and a cash service point and sets the minimum number of ATMs per 100,000 people in each NUTS1 region. Under the Act, certain credit institutions – referred to as designated entities – will be responsible for maintaining access to cash at minimum levels. The Minister prescribes the percentage shares of current accounts and household deposits that a credit institution may have that will determine whether they are a designated entity. The Minister consulted with the Central Bank prior to prescribing the criteria. Governor Gabriel Makhlouf said: “Amid a rapidly changing payments landscape, the Central Bank is committed to ensuring cash is readily available as a means of payment. The regulations announced today are an important step towards ensuring that consumers continue to have access to cash and in protecting the resilience of the cash system. They will also provide for the fair, orderly and transparent management of Ireland’s cash infrastructure as payment preferences continue to evolve.” The Act provides for new responsibilities for the Central Bank, including monitoring compliance with the access to cash criteria set in these regulations as well as oversight of operators of ATMs and cash-in-transit providers. The Central Bank will continue to work with key cash cycle stakeholders as the focus shifts towards implementation of the new legislation.  Key elements of this work include:  Access to cash monitoring and publication - the Central Bank will gather data on a quarterly basis in relation to the number, location and hours of availability of ATMs and cash service points (e.g. retail bank branches and post offices). The data will also be used to publish information on a quarterly basis on the Central Bank website. The first publication of this cash infrastructure data is expected early next year. The Central Bank will monitor this data to assess compliance with the Act and assess proposals by designated entities to remedy non-compliance. Service standards – the Central Bank will commence consultation before the end of the year on proposed regulations for minimum ATM service standards. This will outline proposed requirements for ATM operators including the hours of ATM availability, cash withdrawal limits and banknote denominations available from ATMs. Service standards will apply following completion of this consultation process and the subsequent making of the relevant regulations by the Central Bank.Local deficiencies – the Act provides for the identification and remedying of local deficiencies – i.e. where particular difficulties in accessing cash may arise in certain areas. The Central Bank will commence consultation before the end of the year on proposed guidelines outlining how individuals and businesses can notify the Central Bank about a potential local deficiency. The Central Bank will publish local deficiency guidelines by 30 June 2026, following which the Central Bank will be responsible for reviewing notifications from the public where they believe there is insufficient access to cash services in an area. Following analysis and assessment, the Central Bank will, where appropriate, notify the designated entities of a local deficiency and require that they take steps to address the local deficiency.Further information on Access to Cash can be found on the Central Bank of Ireland website. Further InformationElaine Scanlon 087 2136313[1] In Ireland, the definition of NUTS 3 refers to eight statistical regions. The "Nomenclature of Territorial Units for Statistics" (NUTS) is a system of the European Union for defining territorial units for the production of regional statistics, with NUTS 3 being the smallest subdivision level used for specific diagnostic purposes within the EU.   

Good morning everyone.1I am delighted to join you here today for this year’s Climate Finance week.“The scientific evidence that climate change is a serious and urgent issue is […] compelling.”“The benefits of strong, early action on climate change outweigh the costs.”And “the choices made in the next 10-20 years […] will affect greenhouse gas emissions for the next half-century.”These are not my words. And they are not recent words. They are key conclusions from the Stern Review on the “Economics of Climate Change”.2That was published almost two decades ago now.Fast-forward to today, and we know that greenhouse gas emissions globally have not followed the path advocated for at the time. As a result, the planetary, societal and macrofinancial risks from climate change have intensified over the past two decades. Central banks and regulators globally – including ourselves – have made a concerted effort in recent years to strengthen our understanding of the macrofinancial effects of climate change.This is an essential building block to allow us to take the appropriate actions needed to deliver our mandate.So, in my remarks today, I will focus on those macrofinancial effects.Progress towards decarbonisation has been slower than intended by the Paris AgreementThe starting point for that, of course, is the scientific evidence on human-induced climate change. Today’s event marks a decade since the Paris Agreement in 2015, a landmark moment in the global fight against climate change. It is important to recognise that we have seen tangible outcomes from countries’ collective actions since then, illustrating what can be achieved when nations come together. Global greenhouse gas emissions are now projected to be around 12 per cent below 2019 levels in 2035. This compares to a projected increase in emissions of between 20-48 per cent, before the adoption of the Paris Agreement.3Put differently, we are no longer on a trajectory towards the very worst-case scenarios that were once feared.I emphasize that because – in Dr. Jane Goodall’s words – “without hope, we fall into apathy, and do nothing”.4However, it is also clear that we have not done enough. Global warming projections over this century, based on the full implementation of countries’ Nationally Determined Contributions (NDCs), exceed 2°C (Chart 1). 5Chart 1: Projected global temperature change under different scenariosSource: NGFS Phase 5 Scenario Explorer Rising temperatures, more frequent and severe weather events, and disruptions to communities, economies and financial systems remain pressing concerns. In Ireland, we have also made progress in reducing carbon emissions, which are down around 12% since 2018 (Chart 2).6Chart 2: Ireland's greenhouse gas emissions and carbon budgetsSource: EPA. Over the same period, our population has grown by around 10% and the size of the domestic economy by around 30% in real terms. So we have seen a very positive decoupling between economic activity and emissions.However, the Climate Change Advisory Council’s latest assessment is clear that Ireland is not on track to meet its EU and national emissions reduction targets by 2030.7And that we will exceed the carbon budget allocation for 2021-2025. Progress across sectors has been uneven, with transport and agriculture, which collectively account for approximately 55% of Irish emissions, having seen smaller emission reductions (Chart 3).Chart 3: Sectoral changes in emissions in Ireland, 2018-2024Source: EPAThe macroeconomic costs of climate change outweigh those of the transition to net zeroLet me now turn to our understanding of the macrofinancial effects of climate change and the transition to a climate-neutral economy. The Network for Greening the Financial System (NGFS) – a coalition of central banks from around the world, including ourselves – has been instrumental in the journey of deepening our understanding of the macroeconomic effects of climate change. The NGFS has developed a set of macroeconomic scenarios that assess the potential economic impacts of climate-related physical and transition risks.Let me draw out three key insights from this work.First, the global macroeconomic costs of climate change are material.Under a scenario consistent with current nationally-determined contributions, the level of global GDP would be 13% lower by 2050 (Chart 4).8Chart 4: Global GDP impact of different decarbonisation scenariosSource: NGFS Scenarios (Phase V).The crystallisation of physical risks would be the main factor depressing economic activity in this scenario.Economic losses deepen with time, as higher temperatures caused by a lack of mitigation efforts result in higher chronic physical risk. Second, these estimates represent a stark increase from earlier assessments (Chart 5).Chart 5: The estimated impact of climate change on economic activity has increasedSource: NGFS Scenarios.This is due to updated estimates of the economic damage of climate change, especially on the persistent effects of rising temperatures and precipitation on the economy. To be clear, there is uncertainty and debate around those estimates, as climate physical risk remains a highly complex field, but major improvements have been made recently.Third, the macroeconomic costs of taking action to reduce greenhouse emissions are much smaller than the costs associated with inaction.The NGFS has also provided a scenario consistent with an orderly and gradual transition to net zero by 2050 (Chart 4).This still entails economic losses, because climate change still occurs under that scenario. And transition-related losses are also somewhat higher than under the NDC scenario (Chart 6).Chart 6: The main impact on economic activity stems from physical risksSource: NGFS Scenarios (Phase V).But overall economic losses are smaller under an orderly and gradual transition. And the gap between overall economic losses in the two scenarios increases over time. Put differently, the main conclusion around the relative costs of action versus inaction remains the same as in the Stern Review two decades ago, only starker.Of course, there will be macroeconomic costs during the transition. For Ireland, estimates suggest that additional investment of over €50bn is likely to be needed until 2050 to meet decarbonisation targets, most of it incurred over the next decade (Chart 7).9Chart 7: The transition to climate neutrality will require additional investmentSource: Central Bank of Ireland, based on TIM model.Work we have done with the Climate Change Advisory Council suggests that – in an economy with little spare capacity – undertaking those investments will require redirecting some scarce resources away from the tradeable sector of the economy.10This would entail some macroeconomic costs throughout the course of the transition, although these are estimated to be relatively modest.And, in the longer-run, especially given Ireland’s heavy dependence on imported fossil fuels, a transition to a climate-neutral economy will also entail long-term economic savings. Ongoing analysis on options for recycling revenue from carbon taxes also indicates that there are policy choices that can reduce the costs, and enhance the benefits, of that transition.This work forms the foundation for the economic advice we provide to the government around the macroeconomic trade-offs associated with Ireland’s transition to climate neutrality.The exposure to rising physical risks requires adaptation investmentIn addition to a macroeconomic lens, we have made progress in evaluating sectoral exposures to climate-related financial risks.There are many different potential sources of physical risks for Ireland, but by far the main one stems from an increased likelihood of flooding, severe storms and rising sea levels.So let me focus on that to illustrate the point. As we have already seen, flooding can cause significant damage to property and infrastructure, leading to economic losses for households and businesses, as well as the financial system.Climate science provides us with a quantification of the future risk of floods in Ireland. The Office of Public Works’ (OPW) extensive nationwide analysis considers different future flood risk scenarios, with different combinations of rising sea levels and increases in rainfall. But assessing financial risks requires translating these climate-related insights into potential economic losses.To do that, my colleagues at the Central Bank have been working with the OPW to create a national dataset mapping every property in Ireland to current and future flood risks. That can be used to estimate future damage costs and link properties to exposures of the financial sector. This analysis helps us quantify the rising financial risks stemming from climate change. For example, we estimate that the share of the value of loans to businesses at risk of flooding would more than double under the OPW’s high-end scenario (Chart 8).11Chart 8: The share of loans to companies at risk of flooding is estimated to more than double under the OPW’s high end scenarioSource: Ahangarkolaee et al (2025) ‘Measuring flood risk in business lending’, Behind the Data.There are compounding factors to these direct effects. First, the closer we get to that world, the higher the risk of underinsurance. Separate work by the Central Bank on the flood protection gap has shown that approximately 1 in 20 buildings already face difficulties accessing flood insurance.12And close to 90% of the economic cost of flooding relates to higher-risk buildings that have limited or no insurance access.That’s where we are now. But, in the future, as flood risk worsens, so does the potential risk of uninsured losses.Indeed, we estimate that the value of losses for those with limited access to insurance would increase by almost 50% under the OPW’s high-end scenario. Second, our work on flood risk has also revealed how physical risks are already impacting credit conditions. Forthcoming research suggests that loans to borrowers in flood-prone areas face higher interest rates and are more likely to be asked to post collateral for borrowing.Third, there is evidence of a flood risk premium in the property market, suggesting that a higher risk of flooding would also affect asset valuations.13Putting this all together – higher risk of damage, higher risk of underinsurance, impacts on credit conditions and impacts on valuations – it is clear that rising flood incidence due to climate change can increase the risk of economic losses for households and business.Amongst others, these insights also speak to the importance of adaptation efforts.Because the unfortunate reality is that the climate is changing, and will continue to change going forward, even if we were to accelerate mitigation efforts. Surveys show that many Irish companies are concerned about the physical manifestations of climate change.14But they themselves acknowledge they have not sufficiently invested in efforts to adapt to a changing climate. Adaptation investment needs to increase, globally and in Ireland. Here too, the evidence suggests that early action is likely to be most effective in minimising long-run economic costs.15The costs of inaction outweighing the costs of action is a recurring theme, including in the context of adaptation.The Central Bank recently partnered with the Climate Change Advisory Council to understand the barriers to greater investment in adaptation in Ireland. That work also considered a range of concrete actions that could increase adaptation investment, including strengthening awareness of local and sector-specific risks and improving estimates of the costs of adaptation nationally.Management of climate-related risks by the financial sector has improved, but there is more to doPrecisely because of the macrofinancial effects of climate change I have described above, climate change also entails risks for the financial system.In that context, a key supervisory priority of the Central Bank in recent years has been to strengthen the financial sector’s capabilities to manage climate-related financial risks.And, over the past few years, we have seen meaningful progress in this area. For example, we have seen improvements in governance around climate change and sustainable finance, in the approach to monitoring of climate-related risks, and in the deployment of scenario and stress testing analysis by regulated financial institutions. That said, there is still more work to do to ensure that climate-related risks are integrated fully in risk management practices across the financial system.  For example, we still see inconsistencies across firms and sectors, data continues to be a challenge, and risk management practices are not applied consistently across all relevant portfolios and exposures. So the effective management of climate-related financial risks across the financial system remains one of our key supervisory priorities, as outlined in our Supervisory and Risk Outlook report earlier this year. 16We also recognise that climate change is a shared challenge and that collaboration can be a key enabler if we are to succeed collectively. In that context, the Central Bank’s Climate Risk and Sustainable Finance Forum has provided a platform for stakeholders to work together to drive meaningful progress. In recent years, for example, the Forum has helped bring together stakeholders from a range of sectors to share perspectives on best practices for the management of climate-related financial risks as well as on capacity building within regulated firms.17More recently, the Forum has established a working group focusing on data and disclosures, a common challenge facing regulated firms across the financial system. The Central Bank is ‘staying the course’Let me conclude with some reflections on the Central Bank’s own journey around climate change.I hope it is clear from the above why we have been increasingly focused on climate change in recent years. Ultimately, it is because climate change poses risks to the economy and the financial system. And because the financial system has a key role to play in financing the transition to net zero. So, understanding the macrofinancial effects of climate change and the transition to net zero is essential to allow us to take the appropriate actions needed to deliver our mandate.Whether that is maintaining price and financial stability, providing economic policy advice to the Government, safeguarding the safety and soundness of individual firms, or protecting the interests of investors, including from the risk of greenwashing. I am very conscious that shifting policy priorities globally are leading to a weakening of commitments to climate change mitigation in some parts of the world. Sometimes I get asked whether that shifting geopolitical environment means we are reducing our own focus on climate change. The simple answer to that is no. We are staying the course.Our focus is – and has always been – on delivering our mandate, and we have been approaching climate change through that lens. If anything, further delays in climate change mitigation would mean that the macrofinancial risks from climate change would become more pressing. Thank you for listening. [1] I am very grateful to James Carroll, Patrick Haran, Niall McInerney and Rory McElligott for their advice in preparing these remarks. [2] Stern (2006) ‘The Economics of Climate Change’[3] See ‘Message to Parties and Observers’, United Nations Climate Change Secretariat, 10 November 2025[4] Dr. Jane Goodall’s 2025 Earth Day Message.[5] ‘Emission Gap Report 2025’, United Nations Environment Programme, November 2025.[6] ‘Ireland’s Provisional Greenhouse Gas Emission’, Environmental Protection Agency, July 2025.[7] ‘Cross-sectoral Review: Annual Review 2025’, Climate Change Advisory Council, November 2025.[8] NGFS Scenarios Portal https://www.ngfs.net/ngfs-scenarios-portal.[9] See Conefrey et al (2024), ‘Fiscal Priorities in the Short and Medium Term’, Central Bank of Ireland, Quarterly Bulletin, 2024 Q2.[10] See, McInerney and Fitzerland (2024) ‘Assessing the macroeconomic impact of carbon budgets’[11] See Ahangarkolaee et al (2025) ‘Measuring flood risk in business lending’, Behind the Data, [12] See Central Bank of Ireland (2024) ‘The flood protection gap’[13] For Irish evidence and the housing market, see Gillespie et at (2025) ‘Estimating the flood risk premium: evidence from a once-off informational shock’, Environmental and Resource Economics, Vol. 88. For UK evidence, see Skouralis et al (2024) ‘Does flood risk affect property prices? Evidence from a property-level flood score’, Journal of Housing Economics, Vol. 66.[14] See Disch and McElligott (2025) ‘Beliefs and barriers: Climate change and Irish firms’ access to finance’, Central Bank of Ireland Behind the Data, [15] See the joint report by the Climate Change Advisory Council and the Central Bank of Ireland on ‘Funding climate adaptation in Ireland’, [16] See Central Bank of Ireland (2025), ‘Regulatory and Supervisory Outlook[17] The Risk Management Working Group report and the Capacity Building Working Group report 

Good morning, welcome to Dublin, and welcome to our 4th Financial System Conference.Last month, at the IMF Annual Meeting and the G20 gathering of Finance Ministers and Central Bank Governors, the mood was clear: we are navigating a world that is more fragmented and more contested than at any point in recent decades, presenting clear challenges to the highly interconnected global economy and financial system.  Amidst those challenges, we’ve seen resilience, but beneath the surface lie familiar vulnerabilities – stretched valuations, rising sovereign debt burdens, and an increasingly important non-bank financial sector – all interacting with rapid advances in technology.In the context of such a world, I firmly believe the work of central banks and regulators matters now more than ever, delivering on our important mission of maintaining monetary and financial stability, while ensuring the financial system is operating in the best interests of consumers and the wider economy.Effective and efficient regulation and supervision are among the most important contributions we can make to stability, to resilience, and to confidence in the financial system, ensuring that consumers and investors are protected and that they have trust in a sector that plays such an important role in their daily lives.When I joined the Central Bank six years ago, we were on the cusp of this rapidly uncertain, challenging and changing world.  I spoke then about the importance of building a stronger institution, one that was more forward-looking, more connected to those it serves, and confident in its purpose. We set out to transform the Central Bank, not only in what we do, but in how we think, how we engage, and how we make decisions.  Over that time, we have sought to operate more effectively, to engage with stakeholders more regularly, and to regulate with a focus on delivering for the people of Ireland, Europe, and around the world, given the global nature of the Irish financial services sector.That commitment was captured in our 2021 strategy. It was built around the goals of being more future-focused, more open and engaged, and transformational in the way we deliver our key safeguarding functions.  It was about delivering better outcomes.The years that followed have tested every institution in Ireland, the EU and around the world.  Yet through challenge and change, through the shifts and the shocks – whether from technology, geopolitics, economic fragmentation, or the changing nature of society and the financial system – the Central Bank has continued to evolve.We have strengthened our frameworks, improved transparency, and made meaningful progress in how we engage with firms, the public, and our European partners.And, as I will outline today, we will continue to do so, continuing to strengthen and continuing to evolve.The experience of the past few years has reinforced my view that a strong regulatory system does not depend on the number of rules, but on the quality of those rules, the effectiveness of their application, and the confidence they inspire.At our inaugural Financial System Conference, three years ago, I outlined the Central Bank of Ireland’s regulatory philosophy.  In my remarks, I set out what we expect of ourselves and of the firms we supervise.  It was not a treatise about rules but a speech about behaviour, culture, and intent.Our regulatory philosophy is built on six principles:First, we are forward-looking in identifying risks;Second, we are connected to those we serve;Third, we are proportionate in balancing costs and benefits;Fourth, we are predictable in our expectations;Fifth, we are transparent in our explanations; andSixth, we are agile in adapting to changing environments.That philosophy remains our compass.  These principles guide how we work, how we regulate, and, importantly, how we renew.  They ensure that our frameworks remain effective, proportionate, and trusted even as the financial system, the regulatory system and the global order continues to evolve.This year the world of financial regulation has been buzzing with phrases such as deregulation, de-supervision, modernisation and simplification.  My preference is on continuing to focus on being forward-looking, connected, proportionate, predictable, transparent and agile, or, to put it another way, regulating and supervising well.The challenge ahead is to apply our principles with discipline.This will require the same openness and engagement we have tried to build over recent years, and the same agility that defines our philosophy.For me, regulating well is not about loosening standards or dismantling the architecture that protects consumers and ensures financial stability.  It is about making sure that what we do is clear, consistent, and coherent, so that rules are understood, applied predictably, and achieve their purpose without unnecessary burden or complexity.To be clear: our mandate has not changed. The outcomes we seek have not changed. But in line with our strategy, in keeping with our philosophy, and in response to a changing world, we are changing so we can continue to deliver on our mandate and our outcomes into the future. This was why one of our strategic goals in 2021 was to transform how we regulate and supervise to be more effective and more efficient while continuing to deliver the proportionality, predictability and transparency we are committed to.So, what are we doing? And how will we continue to evolve? Regulating well: The Next EvolutionOver recent years, we have streamlined and, as a result, strengthened our supervision, authorisation, and engagement processes.We have introduced a more efficient and effective supervisory approach, which remains, risk-based and outcomes focussed but is – importantly – more integrated across all our safeguarding outcomes, namely financial stability, consumer and investor protection, safety and soundness and the integrity of the system.  Integration means firms and sectors hear one voice from us as well as more streamlined engagement and demands.We have improved our external-facing processes including authorisations making them more transparent, more consistent, and more predictable. And we have heard positive feedback from firms going through the gate in terms of clarity and responsiveness as well as quicker turnaround times, which we do, importantly, without compromising on our robust standards. This is also reflected in better engagement and clarity in terms of our Fitness and Probity assessments.Building on this work, we are going to continue to make authorisations more effective and efficient, including by further centralising these ‘gatekeeping’ functions. This should bring further consistency, further transparency and further effectiveness to what is an integral part of our regulatory framework.The outcomes we achieved in our first Sandbox Programme represent a new model for innovation engagement, where collaboration accelerates safe innovation. The results we have seen validate our conviction that effective regulation requires open engagement with the innovation ecosystem, and when that ecosystem works together with a clear purpose, meaningful progress follows.The way we make policy has also evolved.The mortgage measures are a good example of regulation that learns in practice. Introduced in 2015, and evaluated annually, we reviewed them comprehensively in 2022 and decided to make some changes following an assessment that the balance of the benefits and costs had changed since they were first introduced.  This shows how we evaluate and refine frameworks over time, drawing on data, evidence, and experience to maintain both resilience and access to sustainable lending.Each initiative applies a test: is this necessary, proportionate, and effective?We want to continue to evolve, and we will do so building on this same foundation. While we have been focused on improving regulation and supervision, we certainly haven’t done so in a vacuum.  As part of our efforts to be more connected, we have been listening to you. Thank you for your submissions. While we probably won’t agree on every point, I am heartened that our strategic aims of making the framework more straightforward without compromising on resilience and protections appear aligned.And we haven’t just listened, we have heard, and we are responding.First, much of financial services policy, legislation and regulation comes from Europe.  Therefore, at a European level, we are working actively with colleagues in other authorities on what is a wide-ranging agenda. I am confident it will result in tangible changes.But our work does not stop in Europe.High-quality regulation depends on coherence between domestic and European frameworks.  As the European Union refines its single-market rulebook, Ireland’s domestic requirements must evolve in step, ensuring that rules remain effective, proportionate, and complementary.  In a highly digitalised and global marketplace, it also depends on clear, effective standards at the global level, which is why the Central Bank of Ireland will continue to be an active participant in international standard-setting across the full breadth of our mandate.Across sectors, we are reviewing frameworks to ensure alignment with evolving EU law, coherence across domestic regimes, and proportionality in application.  This includes work on funds, insurance, banking, governance, outsourcing, AML, and data reporting, all guided by our aim to make regulation clearer, easier to navigate and more straightforward, without weakening the protections it provides to consumers and investors or standards of prudence.Let me give some examples.In the insurance sector, the forthcoming reform of Solvency II provides an opportunity to recalibrate Ireland’s insurance rulebook. The Bank will conduct a compatibility review of more than 50 domestic instruments to identify overlap, underlap, and opportunities for consolidation.The establishment of the EU Anti-Money Laundering Authority and the directly applicable EU AML Regulation will replace a significant portion of Ireland’s existing national AML framework. To ensure consistency, the Bank will retire or revise domestic guidance, including the 2021 sectoral guidelines, once the EU Regulation enters into force.As we have brought in new regulations domestically, we are also reviewing our existing ones.The introduction of the Individual Accountability Framework (IAF) and Senior Executive Accountability Regime (SEAR) are allowing us to review the Pre-Approval Controlled Function (PCF) framework to reduce administrative load while maintaining clarity of responsibility.  Today we are publishing finalised proposals making it simpler to appoint people to PCF roles on a temporary basis where needed and to consolidate our guidance to make it easier to follow.  And as we had committed to, we will be conducting our review of SEAR in 2027.  We are going to review the corporate governance requirements in 2026 to remove duplication, improve alignment across sectors, and embed proportionality and clarity into governance design.These are just some examples of what we are doing.  In the coming weeks, we will communicate a list of our ongoing initiatives, a concise summary of the programmes we are delivering domestically.  It will provide additional details on how each initiative will make our domestic regulatory framework more straightforward.And while the individual projects may matter to some of you, what matters to me most is the discipline behind them: to review what we have built, to align with best practice while meeting domestic needs, and to ensure that rules continue to serve their purpose, while we remain focused on doing our job.At its heart, regulating well is about mindset; creating the conditions where people inside and outside the Bank can engage openly, question intelligently, and contribute constructively. That discipline, the discipline of continuous learning, is what turns good intentions into better outcomes.Trade-offs and the discipline of good policy-makingModern, high-quality regulation also requires humility. Every decision involves trade-offs: between simplicity and precision, between flexibility and certainty, between speed and due process.We must be honest about those choices.A financial system as large and interconnected as Ireland’s cannot be governed through one-page rules.There will always be complexity as the sectors that we regulate can be complex, and the rules must be sufficient to manage that risk.  Firms could certainly help themselves and their customers if they were more straightforward in the design, delivery and explanation of their products and services.  But if complexity must exist, it must at the very least be purposeful. When detail adds resilience, clarity, or fairness, it is justified.  When it merely adds friction or confusion, it is not.That is the essence of good policymaking, one which applies equally when we make new regulations or when we improve existing frameworks.  Perfection is not the goal. The financial system is dynamic and regulation must evolve with it.  I accept that simple deregulation might deliver some benefits to some people but I prefer better and more efficient regulation that delivers positive outcomes to most people.But I want to be crystal clear.  You would be wrong to confuse our efforts to make better policy and to improve our processes with a weakening of our approach to regulation and supervision.  The standards we expect of regulated firms won’t be lowered. We will not dial back our supervision.  We will continue to take enforcement action where necessary.  And if changes to the risk landscape mean we have to introduce new rules or requirements, we will do so.But we are committed to being more effective and efficient, removing unnecessary complexity and burdens, while maintaining the resilience and protections necessary for us to deliver on our mandate.  Being straightforward in our actions and explanations will be a watchword for us.The road aheadWhile we will set out some initiatives in the coming weeks, this is a journey, not an event. We will consult on a new Regulatory Impact Assessment Framework next year, which will further embed evidence-based policymaking into our processes and support us to ensure the orderly and proper functioning of financial markets.And we will continue to engage actively with others on how to streamline the European rulebook in a way that strengthens, rather than fragments, the Single Market.But as I said, a commitment to regulating well and being more straightforward does not mean a commitment to no new regulation; rather, it means ensuring that each new measure is well-designed, well-justified, and well-understood.This will make us better at what we do: identifying risks, allocating resources, and explaining our choices.ConclusionOur preference for simplicity cannot be blind to the complexity that defines modern life.The financial system does not stand apart from society; it reflects it.And the complexity we have to manage reflects the complexity of our societies: interconnected, fast-moving, technology-driven, and global.Our task is to manage that complexity responsibly, not by seeking to make everything simple, but by ensuring that what we do is proportionate and understandable.That is what regulating well and supervising well ultimately mean for me: ensuring clarity of purpose, coherence of process, and consistency of principle. As the financial system continues to evolve, through digitalisation, artificial intelligence, and new forms of intermediation, the need for clear, trusted, and agile regulation will only grow.  The Central Bank’s role is to anticipate these changes, to respond to them with purpose, and to ensure that Ireland’s financial system remains resilient, and delivers in the best interest of our citizens and economy. Robust, efficient and effective regulation and supervision is not a luxury; it is a necessity and one of the most important ways we can contribute to resilience at home and confidence abroad.When we regulate well, we strengthen the foundations of confidence: firms can understand the rules; consumers can trust the system and exercise their rights effectively within it; and society can see that regulation is working in its interest.If we keep faith with that approach – if we continue to challenge ourselves, to be humble about the value of learning continuously, and to evolve our frameworks in a disciplined way – then I am confident that the financial system will continue to work well, whatever the external environment throws at us.I started my remarks today by reminding us of the six principles we apply to our work. Let me finish by also reminding us of the helpful clarity provided by our founding legislation, and which guides us in our work: that the constant and predominant aim of the Central Bank of Ireland shall be the welfare of the people as a whole.I hope you enjoy the conference.

The Central Bank of Ireland today (25 November) hosts its fourth annual Financial System Conference. The conference brings together domestic and international industry leaders, consumer representatives and policymakers to discuss key issues impacting the financial system. Speaking at the conference, Governor Gabriel Makhlouf said the work of central banks and regulators matters now more than ever in a changing, fragmented world, to deliver monetary and financial stability and ensure the financial system continues to operate in the best interests of consumers and the wider economy. He said: “Effective and efficient regulation and supervision are among the most important contributors we can make to stability, resilience and confidence in the financial system. The experience of the past years has reinforced my view that a strong regulatory system does not depend on the number of rules, but on the quality of those rules, the fairness of their application, and the confidence they inspire.“This year, the world of financial regulation has been buzzing with phrases such as deregulation, de-supervision, modernisation and simplification. My preference is continuing to focus on being forward-looking, connected, proportionate, predictable, transparent and agile, or, to put it another way, regulating and supervising well.“Regulating well is not about loosening standards or dismantling the architecture that protects consumers and ensures financial stability. It is about making sure that what we do is clear, consistent and coherent, so that rules are understood, applied predictably, and achieve their purpose without unnecessary burden or complexity.”On the next phase of the Central Bank’s evolution, Governor Makhlouf said, “Over recent years, we have streamlined and strengthened our supervision, authorisation and engagement processes. We have introduced a new supervisory approach which remains risk-based and outcomes focused but is more integrated across the Bank.“We have improved our external-facing processes including authorisations, making them more transparent, consistent and predictable. The outcomes we have achieved in our first Innovation Sandbox programme also represent a new model for innovation engagement, where collaboration with industry accelerates safe innovation.“The way we make policy has evolved. The mortgage measures are a good example of regulation that learns in practice and shows how we evaluate and refine frameworks over time, drawing on data, evidence and experience to maintain both resilience and access to sustainable lending.Governor Makhlouf acknowledged the work the Central Bank is doing at a European level, noting that high quality regulation depends on coherence between domestic and European frameworks. He said, “We are reviewing frameworks to ensure alignment with evolving EU law, coherence across domestic regimes, and proportionality in application.  We expect, for instance, that our existing anti-money laundering framework will mostly be replaced by new EU Regulations.  “As we have brought in new regulations domestically, we are also reviewing our existing ones. For example, we are going to review the corporate governance requirements in 2026 to remove duplication, improve alignment across sectors, and embed proportionality and clarity into governance design.”Governor Makhlouf said, “What matters to me most is the discipline behind these projects: to review what we have built, to align with best practice while meeting domestic needs, and to ensure that rules continue to serve their purpose, while we remain focused on doing our job.” Governor Makhlouf made it clear that there should be no confusion of efforts to make better policy and improve processes with a weakening of the Bank’s approach to regulation and supervision. “The standards we expect of regulated firms won’t be lowered. We will not dial back our supervision. We will continue to take enforcement action where necessary. And if changes to the risk landscape mean we have to introduce new rules or requirements, we will do so.”Over the coming weeks, the Central Bank will publish a list of ongoing initiatives to make the domestic regulatory framework more straightforward, including consulting on a new Regulatory Impact Assessment Framework next year. The Central Bank will also continue to actively engage with others on how to streamline the European rulebook to strengthen the Single Market.Governor Makhlouf said, “A commitment to regulating well and being more straightforward does not mean a commitment to no new regulation; rather it means ensuring that each new measure is well-designed, well-justified, and well-understood. Regulating well and supervising well ultimately means ensuring clarity of purpose, coherence of process and consistency of principle.“Robust, efficient and effective regulation and supervision is not a luxury; it is a necessity and one of the most important ways we can contribute to resilience at home and confidence abroad. If we continue to challenge ourselves, be humble about the value of learning continuously, and evolve our frameworks in a disciplined way, then I am confident that the financial system will continue to work well, whatever the external environment throws at us.”ENDSFurther information:kelly.horn@centralbank.iemedia@centralbank.ie  Notes to EditorsRead the Governor’s full opening remarks

Ark Investments – Central Bank of Ireland Issues Warning on Unauthorised Firm

Introduction Good morning and welcome to the Central Bank of Ireland’s annual Retail Intermediaries Roadshow. I am delighted to have the opportunity to speak in person with representatives from across this diverse sector. This event is an important one as it allows us to engage together and to exchange views and perspectives.Role of regulation and the financial systemFinancial regulation and supervision, key functions of the Central Bank, are essential components of ensuring a well-functioning financial system. Delivering on the Central Bank’s four safeguarding outcomes - the protection of consumer and investor interests, the integrity of the financial system, the safety and soundness of firms, and financial stability - guides all our work. Retail intermediaries play a significant role in a well-functioning financial system. Participants at today’s event provide an important interface between consumers and financial products and services. A financial system that works well is vital for citizens, for businesses, and for the economy. Regulators and the financial industry have significant common ground in supporting these broader outcomes. At the same time, we should not expect there to be a full alignment between industry and regulatory objectives. Consumers need to have good levels of trust and confidence that the financial system is designed to, and will, deliver for them. Regulatory challenge and a robust regulatory framework play an important role in making sure that this is in fact the case.  I will start my remarks today by speaking broadly about where we are in relation to the outcomes that we seek to achieve. Then I will consider a number of themes related to the role of retail intermediaries in a well-functioning financial system. These include:The importance of the sector for consumers;The outcomes that the Central Bank sees as important for this sector; andSimplification and proportionality in regulation and supervision.We have also set aside time for a Q&A and I look forward to hearing the questions that you have on the topics that are of most importance to you.The current landscapeResilienceLooking across the financial system, substantial progress has been made in recent years in the area of financial resilience. We have seen firms demonstrate resilience in the face of adverse shocks – including Brexit, COVID-19, and the Russian invasion of Ukraine. It is important to continue to secure and maintain this resilience given the continuing volatile and uncertain macro environment. Operational resilience – the ability of firms and of the financial services sector as a whole to identify, respond to, recover and learn from an operational disruption – remains an increasingly challenging topic. It requires important focus over the coming period. Operational disruption is a high probability and often high impact risk. As well as threatening a firm’s business, it can significantly negatively impact the interests of clients. Moreover, the interconnections and interdependencies within the financial system create a risk that a problem faced by one firm could be faced by or transmitted to others. It is important that all intermediaries have plans in place to recover from, and to support their customers during, events of operational disruption. These should of course be appropriate to and commensurate with the size, scale and complexity of their business.Retail investor participationA broad general challenge is that in much of Europe, including Ireland, we have relatively high household savings levels but low levels of retail participation in capital markets. The European Commission’s Strategy and Blueprint for Savings and Investment Union (SIU) seeks to redress this balance somewhat and to ensure that EU citizens who wish to do so have better opportunities to invest in capital markets. Forthcoming consumer research and analysis that will shortly be published by the Central Bank shows that Ireland has low levels of direct retail participation in capital markets. The majority of Irish consumers are not engaging in this type of direct investment opportunity. The reasons for this include issues around accessing information and advice, perceptions of suitability (“it’s not really meant for someone like me”), and levels of financial literacy that need enhancing.  Experience from other jurisdictions indicates that availability and choice of suitable products, providers and delivery channels; and access to advice and information are factors that support consumers to participate in capital markets. Retail intermediaries have an important role to play in delivering both of these enablers. The Central Bank’s role, including engaging with the industry, to ensure that consumers have confidence that their interests will be secured, is a key component in supporting this outcome. This objective has underpinned our recent reform of the Consumer Protection Code, including the newly articulated obligation to secure customers’ interests. I will say more about this in a few minutes. Turning for a moment inward to look at the Central Bank itself, the OECD recently carried out a review of the Central Bank’s financial consumer protection supervisory functions against the G20/OECD High-level Principles on Financial Consumer Protection, the international standard in this space. The OECD concluded[1] that the Central Bank is aligned with international principles, and has appropriate policies and practices in place to identify risks and improve outcomes for consumers. At the same time, the OECD identified areas where we could further strengthen our financial consumer protection supervisory functions. These findings tell us that, while we have achieved much in terms of our core mandate of protecting consumers, we must also broaden our sights and ensure that we are proactively embedding the consumer experience and consumer perspective into our approach. As a regulator that is committed to continuous improvement, this will continue to be a focus for us in 2026.Role of retail intermediariesAt the Central Bank, we recognise the very important role that retail intermediaries play in the Irish financial services market for consumers. In numerical terms, the retail intermediaries sector is one of the largest financial sectors in Ireland relative to the overall number of regulated financial service providers operating here, and the significant proportion of Irish consumers that use their services. The sector is of particular economic and social importance as it is a key distribution channel for insurance, pensions and investments, and mortgage products.The sector comprises around 2,500 regulated firms, including a large number of small businesses servicing customers across every county in Ireland. The sector is very diverse and also includes large intermediaries servicing hundreds of thousands of customers. While many retail intermediaries hold multiple licences allowing them to facilitate consumer access to a range of product types, some focus on particular parts of the market such as insurance, mortgages, or investments.This extensive network of intermediaries helps to ensure that consumers throughout the State can access the financial products and services they need for their day-to-day lives.At a time where many financial services have moved online – something which brings many benefits and which many intermediaries have engaged with - intermediaries also allow consumers that prefer a face-to-face and personal service to choose to access financial services in this way. We see the wider societal benefits that this brings.Consumers can be overwhelmed by the different product options available, and may find the level of technical jargon, or complexities of the products in the market, off-putting. We recognise that intermediaries help to bridge that gap, navigating consumers through the many options available, giving tailored advice, based on an understanding of their clients’ circumstances. By providing access and choice to consumers, and helping them to navigate the range of financial products and services available, retail intermediaries play a key role in ensuring that the financial system is fulfilling one of its basic functions – providing useful and suitable financial products and services to ordinary people. Looking to the future, the sector’s continued contribution to quality financial inclusion, and the core outcome of financial wellbeing for consumers is ever more important given the increasingly complex and ever-changing world that we operate within. There is also a significant amount of consolidation occurring in the sector, and the Central Bank will continue to monitor this through our current strategic cycle. By further enhancing our understanding of consolidation and its impact for firms and consumers, we can adapt our supervision and engage with the sector in a meaningful way as it evolves.Outcomes that the Central Bank sees as most important for this sectorNext, I want to address a number of outcomes that the Central Bank sees as a priority for this sector. Overall, we aim to ensure a well-functioning and accessible financial system where sustainably profitable, resilient, well-run firms have securing client interests at the core of their culture. Consumer should have availability and choice, and be empowered to make effective decisions to meet their financial needs. They should be able to access a range of products suitable for and supportive of their financial wellbeing and offering good value. Innovation and competition within the financial services market are important in this regard.All firms in the distribution chain have important roles to play in this, working together to secure consumers’ interests and provide value for money. In their role as the client-facing advisor, retail intermediaries represent a particularly important part of this system. Consumers rely heavily on their intermediary. This means that they should have confidence that the firm they use will perform competently and professionally, will deploy the appropriate level of expertise, and that it will always act so as to secure the customer’s best interests. Consumers can suffer poor outcomes when firms do not meet these expected standards, which could result in firms providing poor advice or recommending an unsuitable product that is not aligned to the consumer’s needs and circumstances. Consumer Protection CodeIn terms of the regulatory framework, you will hear more later today about the recent revisions to the Central Bank’s Consumer Protection Code which will come into force in March 2026. Our review of the Code included extensive engagement with industry, with other organisations and with individuals. I want to expressly and warmly thank this sector for your valuable contribution to that process. One of our key objectives in amending the Code has been to ensure that customers are at the heart of the culture, strategy and business models of financial services firms - including retail intermediaries. This is addressed through a new securing customers’ interests standard which is designed to ensure that their clients’ interests are always at the heart of firms’ business and focuses on outcomes rather than detailed rules. The securing customers’ interests obligation is supported by carefully considered guidance. We hope that this will help firms to understand the things they need to consider, the actions they need to take, and the mindset they should have towards their customers. We think that this regulatory approach will deliver significant benefits. We have seen that many of the decisions that firms must make are in circumstances where detailed rules do not apply. When firms internalise the outcome, when their business decisions are guided by the need to secure their customers interests, the outcomes are materially improved. Supervisory approachAt the Central Bank, we also continue to improve and transform our approach to supervision to continue to ensure we fulfil our mission in a rapidly changing financial ecosystem. Our new supervisory framework, effective since January 2025, remains risk-based and seeks to be increasingly outcomes-focused. It has evolved to deliver a more integrated approach to supervision, drawing on all elements of our mandate (consumer and investor protection, safety and soundness, financial stability and integrity of the system). This positions us better as an organisation to meet our objectives of ensuring consumers of financial services are protected in a changing and increasingly complex and interconnected financial landscape. Retail intermediaries are one of the sectors regulated and supervised by the Central Bank under our new supervisory framework, with each sector supervised in an integrated, holistic way, with a multi-year supervisory strategy that is refreshed annually to ensure emerging risks are considered. The priorities for the Central Bank in this sector include:That retail intermediaries are correctly seen to be highly competent and professional, able to provide high quality advice and to meet their customers’ needs. Firms should deliver this consistently,  securing their customers interests.That they operate remuneration models that avoid undue conflicts of interest, are clear, fair and transparent, and deliver optimal results for customers. Consumers should fully understand how services are paid for and the amount that they are paying. Receipt of commission payments should not impair intermediaries’ obligations to serve consumers best interests.That they are operationally resilient, including against cyber risk. This includes of course, larger intermediaries who provide products that are essential in the day-to-day lives of consumers, and serve a significant proportion of the population.And that the sector as a whole provides potential investors who may wish to participate in capital markets with access to a full range of good quality investment products that meet their investment needs.Unregulated ActivitiesAnother area of focus for the Central Bank is unregulated activity. This has been a problematic issue. Because of the way some firms have approached this issue, individuals have lost money. More generally, overall confidence that the system works consistently in individuals’ best interest is likely to have been impacted. Consumers need real clarity and confidence as to what is regulated and what is not regulated. Products that are outside the scope of regulation do not benefit from the protections afforded by the regulatory regime. Where regulated firms engage in both regulated and unregulated activities, there is real risk that consumers may misunderstand both the risks and the protections when accessing unregulated products or services.The so-called “halo” effect is real and powerful. Consumers see a financial firm that is regulated by the Central Bank and they, rightly, believe that this is important. They don’t expect there to be caveats on that quality mark.Remember, under the revised Consumer Protection Code it is a regulated firm’s responsibility to ensure that it secures its customers’ (and potential customers’) interests at all times.The revised Code requires regulated firms to ensure that their customers or potential customers do not understand an activity to be, or to carry the protections of, a regulated activity where this is not the case.Our new guidance sets clear expectations on the use of branding and other marketing tools. Were a regulated firm to deploy its brand in the sale of non-regulated products or services, the risk of confusion could be material. This risk of confusion is materially heightened where the unregulated product has similar features to regulated products. We have seen this in the recent past with certain unregulated investment products. Such products may be complex and come with the significant risk of investor loss. What this means is that under the revised Code it is unlikely to be possible for regulated firms, under the same or similar branding, to offer products or services which are unregulated and which bear similarity to regulated products or services, as they are unlikely to be able to demonstrate that the risks of confusion have been effectively mitigated.We will engage further with the sector in 2026 on the topic of unregulated activity. We will be focusing on how firms are meeting these expectations. We will seek to better understand relevant governance and decision-making as well as a firm’s culture and strategy, and how offerings are likely to be perceived and understood by clients. Firms must be able to demonstrate the steps taken to secure customers interests and deliver the right outcomes.Simplification and Proportionality The final topic I want to speak about is simplification and proportionality. There has been a lot of focus at European level on the simplification of regulation, including financial regulation. Simplification is an agenda the Central Bank welcomes and is actively considering. Regulators should always be open to reviewing existing frameworks, and seeing if we can deliver the same outcomes in simpler ways. At the same time, current rules are there for a reason. Simpler standards does not mean lower standards. Far from it in fact. Simplification is about achieving the same important outcomes in a more straightforward manner if and where that is possible. Simplification includes making sure regulation is outcomes focused and workable. It therefore requires engagement with stakeholders – both regulated firms and users of financial services. I have already mentioned the recent revisions to our Consumer Protection Code. In carrying out our strategic review of the Code, being open and engaged, and gathering feedback from those impacted, was a key priority for us, and that feedback is reflected in particular in the guidance that accompanies the revised Code. Simplifying also means rigorously applying the principles of necessity and proportionality. In terms of proportionality, we recognise that regulatory requirements impose compliance costs on firms, and such costs are generally passed on to customers. Therefore, such rules should seek to achieve their objective in a way that is cost-effective and proportionate. Requirements should be proportionate in terms of achieving the outcome sought without being unduly burdensome or costly. Proportionality has been and continues to be at the heart of our approach to high quality regulation. I want to highlight some of the steps the Central Bank is taking to enhance our proportionate supervisory approach for intermediaries. Streamlined authorisation for sole traders becoming single director companiesWe are currently working on a new, streamlined authorisation process for sole traders who propose to become single director companies. Under this new approach, we hope that applicants will complete a short form designed to simplify the process while ensuring that all key requirements remain in place. We anticipate that this new approach will recognise that the key people, business model and operations of the sole trader remain unchanged, and therefore, a more efficient process is appropriate. If a sole trader is seeking to amend their business model or add an additional authorisation, it will be required to go through the full authorisation process. This initiative is part of our ongoing commitment to reducing unnecessary administrative burdens while maintaining strong standards of oversight and consumer protection.Fitness and ProbityFollowing the Central Bank’s recent CP160 Consultation on Fitness & Probity, we expect to make a number of amendments to the fitness and probity regime and in doing so we will seek to take account of the nature and scale of retail intermediary firms.Industry communicationsAs demonstrated by our recent industry report setting out the findings of our thematic review of retail intermediaries’ fair versus limited analysis of the market,2 we aim to ensure that industry communications are delivered in a straightforward manner. Rather than seeking to impose additional rules or requirements on firms, these communications are intended to assist and support firms by clarifying our expectations around existing rules and regulations in a simple, meaningful way, instead of creating an additional burden. We call out where we see good standards of compliance across the sector, but also where improvements are needed. We also identify good practices which we have observed within firms, as we know that an important way to raise standards across a sector is for firms to learn from each other. We will continue to assess how we can deliver our supervisory findings in an effective manner that works for everyone.These are just a few examples of how we are seeking to deliver smarter, simpler regulation. By smart regulation, I mean regulation that is proportionate, targeted on outcomes, and adaptive to changing circumstances. Our approach will continue to evolve as needed for the retail intermediaries sector. It will do so so that it can most effectively support the delivery of the outcomes which I believe we all share: a well-functioning financial system supporting the economy and the financial wellbeing of citizens.Many thanks for your attention. I now look forward to our Questions and Answers.[1] OECD, Financial Consumer Protection in Ireland: A Review of the Central Bank Of Ireland’s Supervisory Functions [2] Thematic Review: Limited vs Fair Analysis of the Market in the Retail Intermediaries Sector

Thank you for the invitation to join you today. My remarks will focus on the significance of the relationship between Ireland and the UK, and of course both countries’ links with New Zealand, the economic outlook in a period of global change, how we can find opportunities in times of challenge. Let me start by stating the obvious: the bond between our three nations is not merely economic; it is deeply rooted in social connections that span families, businesses, and communities. The 87 GAA clubs in England, Scotland and Wales and over 10 in New Zealand tell part of the story. The fact that Dublin/London is still Europe’s busiest air corridor is another indicator of our connectivity! And although economic geography is a very different issue for New Zealand, as I’ve said before, technology is bringing the world closer than ever.  In an era marked by fragmentation and uncertainty, our relationship exemplifies resilience and cooperation, enabling us to address shared challenges effectively.  And it is clear that these shared challenges are increasingly global in nature.  They are common to us all, they cannot be confined to borders – and require global cooperation if they are to be addressed effectively. I know that we are committed to international cooperation and multilateralism, and this evening is but another example of our close relationships. I have said on many occasions that diversity of experience and thought strengthens both institutions and individuals. As this period of global fragmentation develops, our countries recognise that the world has changed, and that more change is inevitable. The old world of global trade is dying, and may in fact be dead, but the new one has yet to emerge or, at best, is struggling to emerge.1 Our focus should certainly be on creating a new world rather than clinging to the old.  In my view, Irish institutions are dedicated to international cooperation and we will continue to advocate for and play a key role in developing the new multilateral order that our economies and communities need.Ireland’s economic outlookAn environment of trade barriers coupled with policy unpredictability is unwelcome to an open and very well-connected economy such as Ireland’s.  The agreement between the EU and the US has provided some welcome stability. In the first half of this year, the Irish economy demonstrated resilience, with robust consumption and investment, but headwinds persist. Continued expected growth in real disposable incomes, amid a stable labour market – labour force participation is high and unemployment low – supports our forecasts for continued growth in consumer spending.  Overall, our latest projections anticipate a slowdown from 2.9 per cent growth this year to just over 2 per cent in the coming years.2As for the trade relationship between Ireland and the UK, the most recent data shows that the UK was Ireland’s biggest source of goods imports in 2023, of over €26 billion, and its second biggest export partner, with €22.4 billion of goods exported in 2023. From a services perspective, the UK is Ireland’s second largest services export and import partner, with €52.75 billion of services exported and €29.95 billion relating to imports.3 Ireland’s trade relationship with New Zealand is dominated by pharma and agriculture and, indeed, Agri Tech is an increasingly important area. The Irish economy is well-positioned to face current challenges, thanks to decades of FDI-led growth and strong interconnections with the rest of the world, not least the UK but also of course the US and, most of all, the rest of the EU.  The question is how best to sustain the recent positive trajectory into the medium-to-long term at a time of ongoing geoeconomic fragmentation, a process that has been happening for nearly a decade but has accelerated this year.  This transition sits alongside the other significant, and more familiar, economic transitions of ageing societies, a changing climate and an increasingly digitalised world. Recognising and understanding these transitions is fundamental if we are to shape policies that build economic resilience, enabling households, businesses, and communities to navigate challenges and seize opportunities. International trade in goods has entered a new and profoundly unfamiliar period. Global trade is being reshaped as countries and businesses respond to tariffs directed at them.  In Ireland’s case our analysis indicates an economy one per cent smaller relative to a tariff-free scenario, driven by lower investment and a shift in exports to non-US markets.4 What this year’s events bring to the forefront is the need for clear priorities in economic policy. In particular, policy needs to focus on the fundamentals, managing the short term while planning for the medium term, ensuring our frameworks are fit-for-purpose and learning the lessons of the past while preparing for the future. Successful economies need stable and sustainable macroeconomic frameworks and sound fiscal and monetary policies, along with stable and well-regulated financial systems and well-functioning markets.For Ireland, against a backdrop of strong economic and population growth, continuing to attract investment will require a particular focus on closing infrastructure gaps in water, energy, transport, and housing. Of course, we shouldn’t just stop at the border, and our trading and financial system relationship with our partner countries will continue to be a very important one for our future economic growth. ConclusionWe need to recognise that the world we have been familiar with has changed and that, coupled with the ongoing march of demography, digitalisation, and a warming climate, more change is ahead.  We can meet those changes with confidence if we recognise and accept their existence and work together to address them.I wish you all well and for your continued work bringing together people and businesses in our countries.[1] To borrow from Antonio Gramsci’s Prison Notebooks: “The old world is dying, and the new world struggles to be born: now is the time of monsters.”[2] Central Bank of Ireland Quarterly Bulletin No.3 2025[3] International Trade in Services 2023[4] See On the fault line? The Irish economy in a time of geoeconomic fragmentation - Central Bank of Ireland 2025

Welcome to the Central Bank for the release of the second Financial Stability Review of 2025.Since the last Review in June, we have seen an easing in trade policy uncertainty, with more clarity on tariffs in the short-term. But uncertainty remains high; it will take time for the economic effects of new trading arrangements to become apparent, and the steady state of those relationships over the medium-term remains unclear. Still, near-term global growth forecasts have improved modestly since the last Review. By contrast, risks stemming from developments in global financial markets have increased. Let me focus on three areas in particular.First, there is a continued disconnect between elevated levels of economic uncertainty and stretched market valuations, as equity prices have reached record highs, while corporate bond spreads are compressed. High equity valuations are driven by US technology and artificial intelligence related stocks, supported by expectations of strong earnings growth. A negative development in the outlook for these companies could lead to a market correction. Given the significant exposure of global investors to US markets, this could in turn lead to a shift in broader risk sentiment and a repricing in other markets. Second, recent high-profile bankruptcies in the US have raised questions about lending standards by non-banks in private credit markets, amid a scarcity of information around lending practices in these markets. More broadly, in light of elevated leverage or liquidity mismatches, certain segments of the NBFI sector have the potential to amplify adverse market shocks, given they provide funding for banks, hold sovereign debt and are significant investors in global equity markets.Third, fiscal deficits are rising in many advanced economies leading to higher debt burdens. As well as increasing public debt ratios and placing pressure on government expenditure, this reduces the ability of fiscal policy to respond effectively and support the economy during a downturn. With markets charging low spreads on sovereign debt, a sudden shift in sentiment could lead to unplanned fiscal corrections and wider market disruption, given the centrality of government debt in the global financial system. A broader backdrop to these global financial developments is an increased focus internationally on the efficiency of financial regulation. History tells us that there are clear political economy-driven cycles in financial regulation and supervision. At a global level, we seem to be at turning point, albeit with differences across jurisdictions. In that context, it is particularly important that burden reduction is not confused for an erosion of standards, which could eventually entail significant costs for society. The Irish economy is exposed to international developments given our structural openness and reliance on US FDI. A small number of highly globalised sectors drive output, employment and corporate tax revenue, meaning that any weakening of FDI flows would affect Ireland’s economic model. Given this concentration risk and at a time when growth in infrastructure investment is needed, public expenditure plans will continue to need careful management. Credit growth to the domestic economy has picked up, driven by mortgage credit and particularly for first time buyers. Lending has grown broadly in line with rising incomes over a period of stable economic growth. The link between unsustainable lending practices and house prices – a strong feature of GFC-era property valuations – is not apparent. A more prominent driver of prices in the current environment is a shortage of housing supply. For commercial real estate, the domestic market shows signs of stabilisation and sentiment indicators point to a gradual recovery. Despite significant exposures to global developments, Irish households, businesses and financial institutions currently have relatively healthy balance sheets. Given this starting position, even in an adverse scenario, featuring an escalation of geopolitical tensions, our analysis suggests that the number of firms in financial distress or households that would be unable to cover debt payments would be contained. As illustrated by recent stress tests, and broader analysis in our Review today, the domestic banking system has the capacity to absorb a severe economic shock and continue to support to the broader economy.The Central Bank’s macroprudential policies aim to promote resilience and are proportionate to the risks faced by the financial system. Given the backdrop of macro-financial risks and how global uncertainty can interact with Ireland’s open economy, we judge that maintaining a CCyB rate of 1.5 per cent remains appropriate. The O-SII buffer enhances resilience of those institutions which are systemically important. In this year’s assessment the number of identified O-SIIs is unchanged, while there was a small reduction in the O-SII buffer rate for one institution.The mortgage measures have now been in place for 10 years. These measures aim to prevent the emergence of an unsustainable relationship between credit and house prices and support the resilience of borrowers, lenders and the broader economy. The benefits of the measures have been evident in recent years, and in an environment of heightened economic volatility they have contributed to lower flows into mortgage arrears and supported prudent lending standards.In terms of the macroprudential framework for non-banks, Irish property funds are making progress towards meeting the macroprudential leverage limit ahead of the end of the implementation period in November 2027 and we expect to see continued progress in this regard. At an international level, the Central Bank supports the implementation of agreed reforms on non-bank leverage and on open-ended funds liquidity. Regarding the latter, we are working to understand better how price-based liquidity management tools are used by Irish-domiciled funds. Relatedly, we are analysing the financial stability risks from Irish hedge funds.Thank you for joining us this morning. I will hand you over to Director of Financial Stability Mark Cassidy to take us through the report, before answering your questions.

Stretched valuations in segments of global financial markets and continued trade and economic uncertainty represent the main risks facing the financial system in Ireland, according to the Financial Stability Review published today (17 November) by Central Bank of Ireland.The report is published twice per year and marks one of the flagship publications from the Central Bank. Today’s review assesses some of the main risks faced by the Irish financial system, the resilience of the system to those risks, and the macroprudential policy stance of the Central Bank. Clarity on tariffs in the short term has led to a modestly improved global outlook, but the improvements in growth forecasts rely on current agreements being maintained and the potential for further trade shocks remains. US technology and AI-related stocks are driving equity markets to record levels while corporate bond spreads are compressed, leading to a disconnect between the pricing of risk in global markets and the elevated levels of economic uncertainty. Fiscal deficits are also rising and are increasing sovereign debt burdens. While Irish households, businesses and financial institutions currently have relatively healthy balance sheets and the domestic banking system has the capacity to absorb a severe shock to the economy, risks from economic and trade uncertainty are significant given Ireland’s structural openness and reliance on US foreign direct investment. In his opening remarks at today’s press conference, Governor Gabriel Makhlouf said uncertainty remains high, noting it will take time for the economic effects of new trading arrangements to become apparent, and the steady state of relationships over the medium remains unclear. Near-term global growth forecasts have improved modestly. By contrast, risks stemming from developments in global financial markets have increased.Governor Makhlouf said: “There is a continued disconnect between high levels of economic uncertainty and stretched market valuations as equity indices reach record highs, while corporate bond spreads are compressed. A negative development in the outlook for US technology and artificial intelligent related companies could lead to a market correction. Given the significant exposure of global investors to US markets, this could in turn lead to a shift in broader risk sentiment and a repricing in other markets.”Governor Makhlouf noted recent high-profile bankruptcies in the US have raised questions about lending standards by non-banks in private credit markets, amid a scarcity of information around lending practices in these markets. More broadly, he noted that “in light of elevated leverage or liquidity mismatches, certain segments of the NBFI sector have the potential to amplify adverse market shocks, given they provide funding for banks, hold sovereign debt and are significant investors in global equity markets.”“Fiscal deficits are rising in many advanced economies leading to higher debt burdens. As well as increasing public debt ratios and placing pressure on government expenditure, this reduces the ability of fiscal policy to respond effectively and support the economy during a downturn. A sudden shift in sentiment could lead to unplanned fiscal corrections and wider market disruption.”A broader backdrop to these global financial developments is an increased focus internationally on the efficiency and effectiveness of financial regulation. Governor Makhlouf said: “History tells us that there are clear political economy-driven cycles in financial regulation and supervision. At a global level, we seem to be at a turning point, albeit with differences across jurisdictions. In that context, it is particularly important that burden reduction is not confused for an erosion of standards, which could eventually entail significant costs for society.”The Irish economy is particularly exposed to international developments given its structural openness and reliance on US FDI, with a small number of highly globalised sectors driving output, employment and corporate tax revenue. Given this concentration risk and at a time when growth in infrastructure investment is needed, Governor Makhlouf reiterated that public expenditure plans will continue to need careful management. On the domestic economy, Governor Makhlouf said “Credit growth to the economy has picked up, driven by mortgage credit and particularly for first time buyers.  Lending has grown broadly in line with rising incomes over a period of stable economic growth. The link between unsustainable lending practices and house prices – a strong feature of GFC-era property valuations – is not apparent. A more prominent driver of prices in the current environment is a shortage of housing supply. For commercial real estate, the domestic market shows signs of stabilisation and sentiment indicators point to a gradual recovery.”Despite significant exposures to global developments, Governor Makhlouf said Irish households, businesses and financial institutions currently have relatively healthy balance sheets. Even in an adverse scenario, the Central Bank’s analysis suggests the domestic banking system has the capacity to absorb a severe economic shock and continue to support the broader economy.The Central Bank’s macroprudential policies aim to promote resilience and are proportionate to the risks faced by the financial system. Governor Makhlouf said: “Given the backdrop of macro-financial risks and how global uncertainty can interact with Ireland’s open economy, we judge that maintaining the Countercyclical Capital Buffer rate of 1.5 per cent remains appropriate. In this year’s assessment, the number of identified Other Systemically Important Institutions (O-SIIs) is unchanged, while there was a small reduction in the O-SII buffer rate for one institution.”  On the mortgage measures, which have been in place for 10 years, Governor Makhlouf said the benefits have been evident in recent years. In an environment of heightened economic volatility, they have contributed to lower flows into mortgage arrears and supported prudent lending standards. Irish property funds are making progress towards meeting the macroprudential leverage limit ahead of the end of the implementation period in November 2027. At an international level, the Central Bank supports the implementation of agreed reforms on non-bank leverage and on open-ended funds liquidity. “We are working to understand better how price-based liquidity management tools are used in Irish-domiciled funds. Relatedly, we are analysing the financial stability risks from Irish hedge funds,” added Governor Makhlouf. ENDSFurther InformationKelly Horn kelly.horn@centralbank.ie Media Relations: media@centralbank.ie NotesView the Governor's full opening remarks.Read the Financial Stability Review 2025 II report.

Marco Finance Group - Central Bank of Ireland Issues Warning on Unauthorised Firm

The Central Bank of Ireland today (10 November 2025) launched a campaign to help consumers avoid scams by highlighting how scammers’ techniques are evolving. Lesser-known techniques include fake comparison websites which look and feel like popular websites which help consumers find the best deal on financial services or products. Instead, they are a front to collect personal information which is used to contact consumers to offer them a fake product or service. Consumers can be more likely to fall victim to this type of scam because they’re in the market for a particular product and will be expecting further contact. Fraud recovery schemes are also a popular method which sees scam artists contact victims of fraud with promises of recovering lost funds for an upfront fee. These are designed to exploit victims’ desperation and lead to even more financial loss. The Central Bank has noted a rise in AI being used to create realistic social media ads and profiles impersonating public or business figures (‘deepfakes’). The profiles and ads will promote investment platforms or encourage consumers to join online ‘trading mentorship’ groups for advice. Consumers are coached through the process of setting up accounts on fake investment platforms and transferring funds. In some instances, they’re also encouraged to install software on their devices, giving scammers access to even more sensitive personal information. Speaking on the launch of the campaign, Deputy Governor of Consumer and Investor Protection Colm Kincaid said: “Across society we see increasingly sophisticated scams, principally on social media and other digital channels. Scammers are using these channels to harm users of regulated financial services.  Digitalisation has clear benefits, but these attacks are increasing the need for vigilance. “Even messaging around investment scams is changing. We are seeing a move away from promises of lucrative high returns or eye-catching benefits towards scams that are offering just higher than the market norm, making them even more difficult to spot. “We are launching this campaign to encourage consumers to take time to verify the information they’re seeing online, to ensure they deal only with a regulated financial service provider and get necessary regulated advice before making key financial decisions.” The Central Bank is advising consumers to:Only use well-known, reputable comparison sites and independently verify any products or offers. Examine ads and profiles closely, check the source of ads, and review and query any investment opportunities or platforms they come across before submitting any personal information or transferring money.Ignore cold calls, texts, emails or social media messages from anyone claiming to help you recover lost money.Never pay fees for recovering lost funds and be cautious about sharing personal information. Take the SAFE test:Stop, think and ask yourself about what you’re being offered. Assess the information you’re presented with and check the firm and product are legitimate.Factcheck and make sure the information is from a trusted source.Expose and report scammers to the Central Bank of Ireland or An Garda Síochána.The Central Bank has further information about how to avoid scams at https://www.centralbank.ie/scams Consumers can call 0818 681 681 or contact the Central Bank through our report unauthorised firms section of our website.ENDSFurther informationkelly.horn@centralbank.ie 086 210 33859media@centralbank.ie

The Central Bank of Ireland has fined Coinbase Europe Limited €21,464,734 for breaching its anti-money laundering and counter terrorist financing transaction monitoring obligations between 2021 and 2025.The Central Bank of Ireland (the Central Bank) has fined Coinbase Europe Limited (Coinbase Europe) €21,464,734 for breaching its anti-money laundering (AML) and combatting terrorist financing (CFT) obligations with respect to transaction monitoring as required by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the CJA 2010) between 23 April 2021 and 19 March 2025. Coinbase Europe, which is part of the Coinbase Group, provides crypto asset and wallet services to customers globally to facilitate their use of the Coinbase Group’s trading platform to buy and sell crypto assets.   As a virtual asset service provider, Coinbase Europe is required to monitor customer transactions on an ongoing basis. Where Coinbase Europe suspects that a transaction is facilitating money laundering or terrorist financing it is required to file a Suspicious Transaction Report (STR) with the national Financial Intelligence Unit (FIU) and Revenue Commissioners as soon as possible.  Coinbase Europe has been fined due to faults in the configuration of their transaction monitoring system, which resulted in more than 30 million transactions not being properly monitored over a 12-month period.  The value of these transactions amounted to over €176 billion, and accounted for approximately 31% of all Coinbase Europe transactions conducted in the period when the faults existed.  Further, it took Coinbase Europe almost three years to fully complete the monitoring of the impacted transactions. This subsequent monitoring led to the reporting of 2,708 STRs to the FIU for further analysis and potential investigation. The STRs submitted in respect of the late monitoring of the transactions contained suspicions associated with serious criminal activities including: money laundering; fraud/scams; drug trafficking; cyber-attacks (malware/ransomware); and child sexual exploitation. The monitoring of transactions in real time and the filing of STRs without delay is a cornerstone of the effectiveness and efficiency of the AML/CFT regulatory regime. Failure to do so can seriously hinder how the regulatory and criminal justice system can detect, report, disrupt, investigate and prosecute criminality.   Coinbase Europe has accepted that it breached its transaction monitoring obligations under the CJA 2010 by failing to:Fully and properly monitor 30,442,437 transactions; Adopt internal policies, controls and procedures to prevent and detect the commission of money laundering and terrorist financing; andConduct additional monitoring in respect of 184,790 transactions.Today’s announcement follows the settlement reached between the Central Bank and Coinbase Europe on 5 November 2025.Coinbase Europe has admitted the prescribed contraventions and has agreed to the undisputed facts as set out in the Settlement Notice. As part of the settlement agreement reached between the Central Bank and Coinbase Europe, the Central Bank has determined that sanctions comprising a reprimand and monetary penalty in the amount of €30,663,906 are warranted. The application of a 30% settlement scheme discount brings the amount to €21,464,734. The sanctions have been accepted by Coinbase Europe. The sanctions are subject to confirmation by the High Court and will take effect once confirmed.   Colm Kincaid, Deputy Governor – Consumer & Investor Protection, said:“To be effective in combatting financial crime, law enforcement agencies rely on regulated financial institutions to have systems in place to monitor transactions and report suspicions. The failure of such a system within any financial institution creates an opportunity for criminals to evade detection – and criminals will take that opportunity. Crypto has particular technological features which, together with its anonymity-enhancing capabilities and cross-border nature, makes it especially attractive to criminals looking to move their funds. This is why it is especially important that firms engaged in crypto services have robust controls in place to identify and report suspicious transactions.Where system failures do occur, it is imperative that they are reported to the Central Bank without delay so that appropriate actions can be taken to manage and mitigate the risk.” Notes to editorsThis is the Central Bank’s 162nd enforcement outcome to date, bringing the total fines imposed by the Central Bank to over €428 million.Undisputed Facts Settlement: This is the fourth settlement under the Administrative Sanctions Procedure (ASP) following the changes introduced by the enactment of the Central Bank (Individual Accountability Framework) Act, 2023. The ASP guidelines, which the Central Bank published in December 2023, outline the various settlement processes now provided for under the ASP.The Central Bank concluded this ASP by way of settlement under the undisputed facts settlement process. The Central Bank may enter into the undisputed facts settlement process with a Subject where there are undisputed facts that render an investigation and/or the continuation of an investigation unnecessary. A Subject who enters into a settlement under the undisputed facts settlement process may, at the sole discretion of the Central Bank, and subject to the timing of the settlement, be offered a potential discount to any monetary penalty proposed up to a maximum of 30% under the settlement scheme. Sanctions imposed by way of the undisputed facts settlement process will be subject to confirmation by the High Court.High Court Confirmation Application: As soon as practicable after such a settlement process has been concluded, the Central Bank will apply to the High Court for confirmation of the sanction imposed. The High Court will confirm the decision to impose a sanction unless it is satisfied that any sanction imposed is manifestly disproportionate. If the High Court does not confirm a sanction agreed as part of a settlement agreement concluded under the Undisputed Facts Settlement Process, it will remit the matter for reconsideration by the Central Bank and the Subject along with any recommendation the High Court has in respect of the matters to be reconsidered.This is the first enforcement outcome in the crypto sector. Settlement Notice.“Coinbase Group” refers to Coinbase Global, Inc. and its subsidiaries, including Coinbase Europe Limited.

Financiere Mullin Fund Limited (Clone) – Central Bank of Ireland Issues Warning on Unauthorised Firm

Governor of the Central Bank of Ireland, Gabriel Makhlouf, and Governor of the South African Reserve Bank (SARB), Lesetja Kganyago, jointly signed a Memorandum of Understanding (MoU) in Washington DC, where they were both attending the meeting of G20 Finance Ministers and Central Bank Governors in October.The purpose of the MoU is to provide a framework to promote cooperation between the two institutions, and is established in the context of South Africa’s G20 Presidency, with Ireland as an invited member this year. The MoU will promote mutual understanding and action on key priorities of South Africa’s G20 Presidency, namely mitigating climate-related financial risks and advancing cross-border payments, addressing challenges related to cost, speed, access and transparency.The MoU reflects the critical role central banks play in safeguarding financial, economic and price stability against the effects of climate change, and their part in regulating, supervising, operating, overseeing and upgrading financial market infrastructures to enhance payments.Governor Makhlouf said: “It was a great pleasure to agree these key areas of cooperation with my South African colleague, and to discuss with Governor Kganyago our shared view of the importance of these issues.”Echoing this sentiment, Governor Kganyago said: “South Africa’s G20 Presidency has put these issues at the top of the global agenda. The SARB looks forward to ongoing collaboration with the Central Bank of Ireland and to further advancing these discussions.”

I am delighted to welcome you to the Central Bank of Ireland today.1  It is great to have such a broad range of stakeholders here from public service, civil society, charitable organisations and the financial services sector to discuss protecting consumers in vulnerable circumstances.  It is right to place a special focus on consumers in vulnerable circumstances, and that we reflect vulnerability in all its forms. If we are to have trust in financial services, we need to be confident our best interests will be secured when we are at our most vulnerable, when we are most likely to suffer financial detriment or harm. Periods of vulnerability in our lives (from bereavement to illness to financial and other shocks) often carry with them a requirement to make financial decisions we don’t regularly make, such as claiming on an insurance policy, encashing a financial product or deciding what to do with an inheritance. Major life events that make us vulnerable are also often accompanied by challenges to meet new expenses or other financial difficulties. We may also have to face the challenges presented by an ongoing vulnerability that affects how we need to receive services or advice if we are to be financial included like everyone else. We are all prone to vulnerability through gaps in our financial or digital literacy or lack of confidence in managing our money (or asserting our rights). The geopolitical context is also relevant. In his recent remarks following the Annual Meeting of the International Monetary Fund, Governor Makhlouf spoke to the vulnerabilities in the global financial system itself on which we will need to keep a very close eye and which, on the face of it, look uncomfortably familiar.2 Those of us here today know how rapidly and profoundly shocks to the global financial system can be felt in household finances, augmenting the impact of any vulnerability that household may already face. Or to frame this more constructively, we know how concrete steps to build the resilience of household finances can help our society as a whole to withstand such shocks and rebound from them. In all these circumstances, financial services needs to play its role to support consumers’ financial well-being, that is to say “a state in which individuals are able to smoothly manage their financial needs and obligations, can cope with negative shocks, can pursue aspirations, goals and capture opportunities, and feel satisfied and confident about their financial lives, keeping in mind country specific circumstances”.3That is a challenging task, and a complex one, but not one any of us here today faces alone, since we all have a role to play.Recognising the complexity of these issues, we have organised today’s workshop in order that we may learn from one another. We want to hear about different approaches and best practices, practical steps and measures you have put in place to ensure that culture, policies and processes take account of the needs of consumers in vulnerable circumstances.I also encourage the financial services sector to learn from other industries and public services who may have better approaches to consumers facing particular vulnerabilities. I would like it to be said in future that the financial services sector is amongst the best at supporting consumers in vulnerable circumstances. Would that be said today I wonder? In some respects it might, but in others I expect it would not.Our New Consumer Protection Code The backdrop to today’s event is the Central Bank of Ireland’s new Consumer Protection Code.4 It will come into force in March next year and contains modernised provisions on consumer vulnerability. The new Code builds on work done this past decade to strengthen the consumer protection framework in Ireland, both to align with global standards and in reaction to specific challenges and cases of misconduct we had to deal with.5The Consumer Protection Code is the cornerstone of our consumer protection framework for financial services, sitting within a wider framework of laws to protect consumers and investors. The recent review of the Code was a key strategic initiative of the Central Bank to ensure the Code remains fit for purpose and future-ready. We carried out the review in an open and engaged manner and I want to thank the more than 1,320 organisations and individuals who engaged with us through the process. In particular I thank those who responded to our public consultation. Our new Consumer Protection Code would not be what it is without your insights. As we move to implement the new Code, we want to continue to get the benefit of your insights, just as we did in the Code Review itself. Today’s event is an example of this approach, to take a modernised component of the new Code (vulnerability) and workshop with you what it should mean in practical terms. We will continue to arrange engagements such as this as we head towards the go-live date on 24 March 2026 and beyond. In doing so, we recognise the Code contains new provisions on which we need a shared understanding if we are to continue to improve financial services over time. At the Central Bank of Ireland, we are committed to continuing to engage with you on these topics. We are also committed to sharing and disseminating information as our understanding of the Code and its impact evolves. New protections for consumers facing vulnerable circumstancesOne of the new Code’s key enhancements is to broaden the concept of "vulnerability" to which specific protections apply. In doing so, we are aligning ourselves with the more sophisticated articulation of vulnerability in the revised G20/OECD High Level Principles on Financial Consumer Protection. The OECD’s recent review of our supervisory approach included specific recommendations to enhance our supervisory approach with respect to vulnerable consumers.6 We will factor what we hear today into our development of that approach under our new supervisory framework. Our implementation of the new Consumer Protection Code I know you will also be keen to understand how the Central Bank is approaching implementation of the new Code in general. There are four points I want to make: We expect regulated firms to now be well advanced in their implementation of the new Code underpinned by clear plans, resources and senior level accountability. Your care and attention to implementing the Code is something we will take into account in future supervisory actions. Here, I want to commend those industry bodies who have been so proactive in playing their role to support member firms through dedicated workstreams and groups. We recognise the Code introduces new requirements. We will work with firms and stakeholders across the system to build understanding of those requirements. We will be open and engaged on this, recognising the Central Bank does not always have the answer to what represents best practice in terms of operationalising a given provision of the Code. Today’s workshop is an example of this – you will understand better than us what a good approach to supporting a consumer facing a given vulnerability will be.We will weave the requirements of the Code throughout our supervisory work, consistent with our new integrated supervisory approach. As I outlined in recent remarks7, in the immediate period ahead this will involve a particular focus on: How firms operate and the consumer/investor experience: We expect firms to be well run, secure their customers’ interests and effectively manage any conflicts of interest by placing consumers and investors at the heart of decision making.Digitalisation: Digital innovation can support consumers and investors. However, it also comes with potential risks in terms of ensuring consumers are enabled to make the digital transition and given appropriate information and support when making transactions digitally.  There is also a need to ensure operational resilience, recognising the significant impact service disruption has on consumers.   Financial crime: This should be a priority for all firms and agencies involved with financial services. We all need to actively safeguard the integrity of the financial system and consumer interests by combatting financial crime.How firms have enhanced their supports for consumers facing vulnerable circumstances can be expected to feature in our supervisory engagements across each of these three themes.4.  We will assess the effectiveness of the Code through the substantive outcomes firms achieve. This will include enhancing how we gather and consider insights from consumers through our research, new capabilities we are equipping our supervisors with to monitor online activity and how we use conduct of business returns.8 Here I have a particular ask of regulated firms when it comes to implementing the Code: build a better understanding of your customers’ financial well-being, their needs and the challenges they face (including listening more closely to what their complaints are telling you about their experience of your firm).  I have seen good examples of this being done already and I believe, if done well, it can support good outcomes for both consumers and the businesses involved.Keeping track of progressWhen I say we need to assess the effectiveness of our regulatory frameworks through the substantive outcomes achieved for consumers, I generally see people nod in agreement. But I wonder do we know or agree what those outcomes should be?Perhaps today’s workshop will be an interesting insight into that. In recent remarks I spoke about the need to support a better social conversation on financial well-being. I am committed to this conversation because I want us to be able to keep track of how we are delivering better outcomes for consumers in real terms. How are we to assess these outcomes if we don’t have a shared concept of what ‘financial well-being’ means to begin with? The Central Bank supports Ireland’s Well-being Framework and we are working at OECD level to develop the conceptual framework for financial well-being specifically.  To support this work and our social conversation here in Ireland, I am keen that we build more structured data on this topic, hence my encouragement to regulated firms to place a focus on this. For its part, the Central Bank will continue to put information into the public domain to inform this conversation. In addition to our ongoing research and statistical publications, we are putting in place a new Consumer Insights Model, to understand the position of Irish consumers via a nationally representative survey of 4,000 consumers of financial services across a range of topics relevant to financial well-being. We will collect, measure and analyse data on these consumers’ behaviours and experience of different financial services. We will also measure their attitudes and sentiment across a range of consumer finance topics.  We will publish the outputs to inform policy as well as our own supervisory strategies. The Consumer Insights Model will enhance our understanding of the financial products consumers and investors buy, their experiences of financial service providers, their financial situation and their attitudes towards current issues affecting financial services.  It will also inform our risk analysis of sectors and markets and how we prioritise our work.  Events like today and our forthcoming Consumer Insights Model reflect the Central Bank’s demeanour towards how we will implement the Code. We realise the reforms of the Code will take work to implement and that we must support that work going in the right direction. We will also be monitoring closely the extent to which firms’ implementation of the Code is leading to demonstrably better outcomes for consumers. I suggest regulated firms put increasing focus on doing so too, so that together we keep track of how regulation is contributing to creating the right conditions for financial services to support financial well-being. Let me pause there and thank you for your attention and your participation in our workshop today.[1] Thanks Deirdre Mullally, Brendan Beere, Patrick Casey, Brenda Carron and James O’Sullivan for their help in preparing these remarks.[2] Governors Blog 2025 IMF Annual Meeting.[3] G20 Policy Note on Financial Well Being.[4] Central Bank of Ireland Consumer Protection Code.  [5] G20/OECD High-Level Principles on Financial Consumer Protection.  [6] OECD (2024), Financial Consumer Protection in Ireland: A Review of the Central Bank of Ireland's Supervisory Functions, OECD Publishing, Paris. [7] "Towards Our Future Financial Wellbeing" - Speech by Deputy Governor Colm Kincaid at Financial Services Ireland.  October 2025.[8] For example, see recently published research related to Buy Now Pay Later (BNPL).  Following this research, the Central Bank issued a Dear CEO letter to firms in the sector highlighting the importance of the research findings and the forthcoming consumer code requirements in this area. 

The Central Bank of Ireland today (31 October 2025) published the seventh annual Private Motor Insurance Report of the National Claims Information Database (NCID). The report looks at data from 2010 to 2024 and gives insights into the cost of premiums, claims and the overall aggregated financial performance of the private motor insurance sector. NCID compiles data from all insurers selling private motor insurance in Ireland with a view to improving the overall transparency of the private motor claims sector. The total gross written premium in 2024 for private motor insurance was €1.46bn. Other key findings published in today’s report include:Cost of InsuranceThe average written premium per policy increased by 9% to €623 between 2023 and 2024.The expected cost of claims per policy increased by 3% to €397 in 2024, the highest it has been since 2014. This is driven by damage claims:Damage claims cost per policy increased to €192, while injury claims cost per policy remains lower than pre-pandemic levels at €205. Injury claims cost remained stable between 2022 and 2024, compared to €257 for the pre-COVID 2015-2019 average. The average cost of smaller injury claims has reduced in recent years, but this has been offset by an increase in the average cost of larger injury claims.Expected claim costs as a percentage of premiums received was 68% in 2024.In 2024 93% of policies sold had comprehensive cover which is consistent with the 2023 findings.Income and Expenditure Operating profit was 4% of total income in 2024, down from 8% in 2023 and 12% in 2022.Overall, between 2010 and 2024 operating profit was 5%.Combined Operating Ratio (COR) was 95% gross and 99% net of reinsurance.Settled Claims in 2024The total cost of claims settled in 2024 was €792m. Damage claim costs accounted for 54% of total settled claim costs, an increase from the 29% average observed between 2015 and 2021. Damage claims increased by 6%, while the average cost of damage claims increased by 18% compared to 2023. For injury claims settled in 2024:48% settled directly with an insurer, with an average time taken to settle of 1.8 years.16% settled through the Injuries Resolution Board with an average time to settle of 2.7 years 36% settled through litigation with an average time taken to settle of 5 years. Personal Injuries GuidelinesFor injury claims settling directly or through the Injuries Resolution Board, virtually all claims settled under the Guidelines in 2024. For injury claims settled through litigation in H2 2024:57% settled under the Guidelines.43% settled with reference to the book of Quantum.The average cost of claims settled under the Guidelines in 2024 were (when compared to claims settled in the same channel under the Book of Quantum in 2020):33% lower for claims that settled directly before the Injuries Resolution Board.8% lower for claims settling through the Injuries Resolution Board.26% lower for claims settling directly after the Injuries Resolution Board. A reduction in compensation awards has also been observed for claims (under €100,000 compensation cost) settled in the litigated channel.  Robert Kelly, Director of Economics and Statistics at the Central Bank of Ireland, said: “We are pleased to publish the seventh annual Private Motor Insurance Report of the NCID today. It’s an important resource for policymakers, stakeholders and the wider financial services industry and improves the overall transparency of the claims environment and the insurance sector. “The average written premium has increased by 9% compared to 2023. The data also shows claims costs continue to rise, primarily due to an increase in damage claims. In 2024, damage claims accounted for 54% of settled claim costs, a significant increase from the 29% average observed between 2015 and 2021.“While there has been an upward trend in the number of claims settled and the associated costs since the COVID years, it is important to highlight the total cost of injury claims settled in 2024 was 16% lower than the average from 2015 to 2019, with the total number of injury claims settled being 23% lower. Operating profit was 4% of total income in 2024, down from 8% in 2023 and 12% in 2022. Overall, between 2010 and 2024, operating profit was 5%.”ENDS More InformationKelly Horn kelly.horn@centralbank.ie / media@centralbank.ie  

New phase will ensure technical readiness for first issuanceIf legislation in place in the course of 2026, a pilot exercise could start in 2027 and the Eurosystem should be ready for a potential first issuance of the digital euro during 2029Preparation phase begun in November 2023 has successfully concludedThe Governing Council of the European Central Bank (ECB) has decided to move to the next phase of the digital euro project. This decision follows the successful completion of the preparation phase, launched by the Eurosystem in November 2023, which laid the foundations for issuing a digital euro.The Governing Council’s decision aligns with European leaders’ request to accelerate progress on the digital euro, as recently stated at the October 2025 Euro Summit. A digital euro will preserve Europeans’ freedom of choice and privacy and protect Europe’s monetary sovereignty and economic security. It will foster innovation in payments and help make European payments competitive, resilient and inclusive. The Eurosystem will implement its preparations flexibly, in line with calls from euro area leaders for the Eurosystem to be ready for a potential digital euro issuance as soon as possible, while also recognising that the legislative process has not yet been completed. The ECB Governing Council‘s final decision on whether to issue a digital euro, and on what date, will only be taken once the legislation has been adopted. Under the assumption that European co-legislators will adopt the Regulation on the establishment of the digital euro in the course of 2026, a pilot exercise and initial transactions could take place as of mid-2027. The whole Eurosystem should then be ready for a potential first issuance of the digital euro during 2029.“The euro, our shared money, is a trusted sign of European unity,” said ECB President Christine Lagarde. “We are working to make its most tangible form – euro cash – fit for the future, redesigning and modernising our banknotes and preparing for the issuance of digital cash.”As payment habits evolve, and cash payments decline compared with digital transactions, the need for a public digital means of payment – complementary to cash – has become increasingly urgent. The digital euro will complement cash and bring its benefits – simplicity, privacy, reliability, availability across the whole euro area – to digital payments. Along with the Regulation on the establishment of the digital euro, the ECB is also supporting the European Commission’s proposal to reinforce the right to pay with cash.The Eurosystem will focus on three main areas:Technical readiness: developing the digital euro’s technical foundations, including initial system set-up and piloting;Market engagement: collaborating with payment providers, merchants and consumers to finalise the rulebook, conduct user research and test the system through pilot activities;Legislative process support: continue providing technical input to EU co-legislators and assist the legislative process as required.“This is not just a technical project but a collective effort to future-proof Europe’s monetary system,” said ECB Executive Board member Piero Cipollone, who chairs the High-Level Task Force on a digital euro. “A digital euro will ensure that people enjoy the benefits of cash also in the digital era. In doing so, it will enhance the resilience of Europe’s payment landscape, lower costs for merchants, and create a platform for private companies to innovate, scale up and compete.”Transparency and close cooperation with stakeholders have been – and will continue to be – fundamental to the project. The Eurosystem has benefited greatly from feedback from European decision-makers, market participants and potential users, and will continue to engage actively with a wide range of stakeholders.The Eurosystem’s continued preparation for a digital euro will be implemented flexibly, ensuring alignment with the legislative process. To this end, work will be structured in modules to enable gradual scaling and limit financial commitments. The final cost of a digital euro – for both its development and operation – will depend on its final design, including components and related services that need to be developed. As a result of the work done in the preparation phase, the total development costs, comprising both externally1 and internally developed components, are estimated at around €1.3 billion until the first issuance, which is currently expected during 2029. Subsequent annual operating costs are projected to be approximately €320 million per year from 2029. The Eurosystem would bear these costs, as it does for producing and issuing euro banknotes – which, like the digital euro, are a public good. As in the case of banknotes, these costs are expected to be compensated by the generated seigniorage – even if digital euro holdings were small compared with banknotes in circulation.The conclusion of the preparation phase marks an important transition in the digital euro project. Building on the insights gained during the investigation phase conducted from 2020 to 2023, we moved towards refining its practical design. Key achievements include (1) the development of the draft digital euro scheme rulebook, (2) the selection of providers for digital euro components and related services, (3) the successful running of an innovation platform for experimentation with market participants, as well as (4) the investigation by a technical workstream into the fit of the digital euro in the payment ecosystem. The latter, conducted by the ECB and market participants via the Euro Retail Payments Board, concluded that a digital euro could foster further competition in the European payments market. Besides directly benefiting from distributing the digital euro, banks and other payment service providers could leverage its open standards to expand their reach across the euro area without needing their own acceptance networks. They would also be able to co-badge the digital euro with existing payment solutions.The ECB provided technical input to co-legislators on request, thereby supporting the legislative process. This input demonstrated that the costs of the digital euro for banks will be contained – these costs will be close to the European Commission’s initial estimates and similar to those incurred for the implementation of the Payment Services Directive. It also showed that safeguards built into the design of the digital euro (such as holding limits) would ensure that it does not create financial stability risks.To ensure that the digital euro is designed to meet the needs of European citizens and merchants, the Eurosystem conducted extensive user research targeting vulnerable consumers and small merchants. The findings – available in a separate report published today – show the need for a simple, reliable and secure payment experience. These results reaffirm the ECB’s commitment to developing a digital euro that works for everyone and advances Europe’s financial evolution – designed to empower citizens, support innovation and strengthen the resilience of our monetary system. [1] External development costs until a first issuance are estimated at around €265 million.

Chair and Committee members, thank you for the invitation to join you today to discuss the issue of the Central Bank’s role in the Israeli Bond Programme. I am joined by Mary Elizabeth McMunn, Deputy Governor, Financial Regulation, and Gerry Cross, Director of Capital Markets and Funds. Since our first engagement with you on this issue over a year ago, we have endeavoured to support your examination of it to the fullest.The Central Bank’s role in this issue is governed by EU law. The EU Prospectus Regulation sets out harmonised EU laws with respect to securities which are the subject of that regulation. This is a part of the EU Capital Markets Union. Each Member State of the EU must appoint a competent authority in that jurisdiction. The Central Bank has been appointed as the competent authority in Ireland for the purposes of the EU Prospectus Regulation and must carry out its functions and duties as provided for under that Regulation.At all times, we have been obliged to carry out the statutory tasks and functions which have been assigned to us. We have to work within the law and we have carefully and comprehensively discharged our obligations under the EU Prospectus Regulation.As set out in my recent letter to the Committee, there are a number of important over-arching points that I would like to highlight, specifically the Central Bank’s role in the transfer of approval process, our professional secrecy obligations, and the framework of EU Regulations within which we operate.First, Article 20(8) of the EU Prospectus Regulation provides for the transfer of the approval of a prospectus on the request of an issuer to the competent authority of another Member State. Any such transfer is subject to prior notification to ESMA and the agreement of the competent authority to whom the approval function is to be transferred.In this process, the competent authority of the home Member State only approves the transfer to the competent authority of another Member State but does not approve the prospectus that is issued. The competent authority of the transferee Member State reviews and decides whether to approve the prospectus.In this framework, the Central Bank’s role was limited to transferring the role of approving the 2025 Prospectus to the Commission de Surveillance du Secteur Financier in Luxembourg (the CSSF). The Central Bank did not have any role in the review or approval of the 2025 Prospectus and did not receive any draft of that document. It was a matter for the CSSF to independently carry out the review and approval process.There are two distinct and separate steps in the transfer of approval process. The first is the transfer of approval of the prospectus to another competent authority. The second is the review and approval of the prospectus by that other authority. In carrying out its role of reviewing and approving the relevant prospectus, the CSSF is entirely independent of the Central Bank.Second, the Central Bank is subject to confidentiality obligations pursuant to the EU Prospectus Regulation and Section 33AK of the Central Bank Act 1942. Those obligations restrict us from disclosing confidential information obtained in the performance of our functions. The correspondence between the Central Bank and the State of Israel and between the Central Bank and the CSSF also falls within confidentiality restrictions. Within our legal obligations, we have sought, to put as much information as possible with regard to this matter into the public domain.Third, one of the functions that we are required to carry out under the Prospectus Regulation is to consider transfer of approval requests. When considering transfer of approval requests, we consider the connectivity of the prospectus with the jurisdiction from which and to which it is seeking a transfer.In the case of the State of Israel transfer of approval request, the issuer decided that it would cease from 1 September 2025 making offers to the public under its prospectus in Ireland. The bonds to be issued under the 2025 Prospectus may only be offered to the public in Austria, France, Germany, Luxembourg and the Netherlands.In circumstances where the State of Israel proposed to discontinue offers to the public under its prospectus in Ireland, the Central Bank approved the transfer of approval of the prospectus under the EU Prospectus Regulation.Finally, the Central Bank reviewed the recommendations in the report issued by this Committee in the context of its functions and with regard to the prospectus it approved for the State of Israel on 2 September 2024 which expired on 1 September 2025. However we had no role in the review and approval of the 2025 prospectus.We are happy to take your questions.