The central bank’s deputy governor has warned financial firms to be mindful of how they treat the regulator during the licensing process if they want a “simple” approval.
Speaking at the Financial Services Ireland lobby group’s annual dinner on Wednesday, Sharon Donnery said there is now a “very different pipeline of firms … with novel business models” bidding for regulation and hinted that some of the requirements not met.
“We see that some companies don’t understand that authorization is just the beginning,” she said.
“Once approved, a regulatory and supervisory relationship begins that lasts for the duration of a firm’s existence as a regulated entity. So the nature of companies’ initial engagements with us influences our understanding of how they will approach regulatory compliance if and when they are authorized.”
She said the Irish financial services sector in Ireland is growing rapidly and internationalising, with the number of e-money and payments companies growing 138 per cent between 2018 and 2021, while the size of the funds sector almost doubles to 10,000 companies with €5.6 trillion have assets.
But Ms Donnery stressed that the central bank is primarily interested in whether these firms can demonstrate their integrity.
“Our experience has been and remains that companies that understand their proposed business model, the risks involved, and the compliance obligations in place to protect the overall system are the companies that find approval easiest,” she said.
The central bank has been criticized in recent years for being slow in enforcing permits for new types of financial ventures, and Governor Gabriel Makhlouf has been very skeptical about the growth of the crypto sector.
https://www.independent.ie/business/irish/central-banks-deputy-chief-sharon-donnery-fires-warning-to-finance-firms-over-authorisation-process-42150344.html Central Bank Deputy Governor Sharon Donnery warns financial firms about the approval process