Central Bank Reminder Of Key 2024 Priorities

Arthur Cox


Arthur Cox is one of Ireland’s leading law firms. For almost 100 years, we have been at the forefront of developments in the legal profession in Ireland. Our practice encompasses all aspects of corporate and business law. The firm has offices in Dublin, Belfast, London, New York and Silicon Valley.
The Central Bank's 2024 priorities, set out in yesterday's Annual Report 2023 and Annual Performance Statement 2023-2024, are aligned with those set out in its Regulatory Supervisory...
Ireland Finance and Banking
To print this article, all you need is to be registered or login on Mondaq.com.

The Central Bank's 2024 priorities, set out in yesterday's Annual Report 2023 and Annual Performance Statement 2023-2024, are aligned with those set out in its Regulatory Supervisory Outlook Report 2024 (published in February 2024). For our insights on that earlier report, see here, here and here.

The 2024 priorities set out yesterday are:

  • The revised Consumer Protection Code (CPC). The consultation closes on 7 June 2024. The final draft 'Conduct of Business' Regulations which will replace the CPC and incorporate, among other codes, the Code of Conduct on Mortgage Arrears are expected to be published together with a Feedback Statement and final draft 'Standards for Business' Regulations (part of the Individual Accountability Framework (IAF)) at the end of Q4 2024. The Regulations will be signed into law shortly afterwards, with a 12-month transition period, meaning that the new framework will come into force around end-Q4 2025/early Q1 2026. Read our insights here and here.
  • IAF implementation. The Senior Executive Accountability Regime (SEAR) will go live on 1 July 2024. The Central Bank has published updated Guidance on the IAF together with the final regulations (the SEAR Regulations). The SEAR Regulations will apply from 1 July 2024, save for the provisions in respect of non-executive directors which will apply from 1 July 2025. Read our insights here and here.
  • Domestic and international work on the non-bank sector and related macroprudential policies. Read our insights here on the European Commission's recent consultation on macroprudential polices for non-banks, which highlighted the Central Bank's recent work in this area (its discussion paper, the leverage limits and macroprudential measures for Irish-authorised GBP-denominated LDI funds).
  • Preparing for the implementation of the Digital Operational Resilience Act (DORA). Read our insights here and here.
  • Implementing the Markets in Crypto Assets Regulation (MiCA). The Central Bank confirmed this week that it will run an industry event in July 2024, setting out its authorisation and supervision expectations for in-scope firms. It will open its "authorisation gateway" in Q3 2024. The speech by Gerry Cross gave a flavour of the key expectations that firms will need to meet. The Central Bank's recent notice on the impact of MiCA on those with existing virtual asset service provider (VASP) registrations is also key reading.
  • Implementing the Credit Union (Amendment) Act 2023, updating the Credit Union Handbook and amending related Central Bank Regulations.
  • Policy work and supervisory expectations on the use of AI in financial services, including preparing for the implementation of the EU's AI Act.

The Central Bank will also focus on ensure consumer protection, the resilience of firms, and the stability of the financial system in the expectation of further interest rate changes. It will also continue to improve its authorisation processes, and its work in the area of crisis management and resolution.

Sectoral supervisory priorities will include addressing identified issues with payment and e-money institutions (read our insights here), continuing to develop its approach to the investment fund sector, and continuing its work to assess the materiality of the flood protection gap in Ireland.

In the payments sector, the digital euro project, and the planned Access to Cash framework (read our insights here) will be key priorities.

We also expect the following to be focus areas in 2024:

  • ESMA's upcoming recommendations following the US move to a T+1 settlement cycle (read our insights here).
  • The upcoming AML/CFT framework and Basel III / EU Banking Package (CRR III and CRD VI) (publication of the legislative acts in the Official Journal is imminent).
  • The management of early mortgage arrears, following the recent Dear CEO letter (read our insights here).

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.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More