Irish Regulatory Update

Author: Clerkin Lynch LLP

Date Published 12/07/2022

Revised Central Bank Investment Firm Regulations

The Central Bank of Ireland (the “Central Bank”) published the final form of revised Central Bank Investment Firms Regulations (the 2Regulations”) on 23 June 2022. These contain amendments in particular to the Client Asset Requirements (the “CAR”), which are set out in Part 6. Other revisions to the Regulations include broadening the scope and application of the CAR to credit institutions, targeted enhancements to include investment firms and credit institutions holding client assets in the context of conducting wholesale activities as well as other amendments applicable to all investment firms in scope for CAR.

A Guidance Note has also been published by the Central Bank to accompany the revised CAR. A transitional period for compliance will apply but the revised CAR will be applicable to investment firms from 1 July 2023 and credit institutions from 1 Jan 2024.

The Central Bank has made it clear that the protection of client assets is one of its key priorities. These amendments are aimed at enhancing the regime to ensure that client assets held by investment firms and credit institutions, authorised by the Central Bank, are subject to appropriate safeguards.

The Regulations are expected to be published in the Irish Statute Book later in 2022 and will not be subject to further change.