The Dear CEO letter from Central Bank Deputy Governors Sharon Donnery and Derville Rowland to regulated financial services firms, summarising the Central Bank's regulatory and supervisory priorities for the year ahead, aligns with the list of priorities confirmed by the Central Bank to the Minister for Finance last month (read our January 2023 update here: Central Bank Update: Mortgage interest rates; regulatory priorities for 2023).
From a regulatory perspective, we expect to see the Central Bank consultations on the impending Individual Accountability Framework shortly as the Bill is expected to complete its passage through the Houses of the Oireachtas this week. From a supervisory perspective, monitoring emerging risks in the areas of distressed debt, investor protection and product governance as part of its oversight of the more consolidated Irish banking market is a priority, as are financial and operational resilience (in particular in light of the risks posed by possible declines in asset quality due to inflationary pressures, the after-effects of the COVID-19 pandemic and the economic slowdown in the UK), and the detection and sanctioning of AML/CFT breaches, breaches of financial sanctions, and market abuse.
If you would like to discuss any of the areas highlighted as priorities by the Central Bank in the context of your business, please get in touch with your usual contact in our Financial Regulation Group, our Financial Regulation: Individual Accountability and SEAR Group or our Asset Management and Investment Funds Group.
https://www.centralbank.ie/docs/default-source/publications/correspo
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.