Looking Ahead: Irish Developments

CONSUMER PROTECTION CODE (CPC)

We expect to see the consultation paper from the Central Bank on its planned changes to the CPC in the coming weeks, following its October 2022 discussion paper and its August 2023 update on the CPC review. The Central Bank has also signposted that:

• The revised 2024 CPC will be updated again in 2025. The second set of changes are expected to address matters arising from the Retail Banking Review Report, and key themes arising from the European Commission’s retail investment strategy and the planned changes to the Payment Services Directive.
• The Code of Conduct on Mortgage Arrears (CCMA) and other “existing standalone consumer protection codes and regulations” will be consolidated into the revised CPC. The Central Bank has not signposted any plans to change the CCMA itself, but rather wants to locate all consumer-protection codes and regulations in the one place.

The Central Bank also indicated that it is “considering the scope of the Code and whether it should be extended to include sectors or services not currently covered by Code provisions."

For more information, read our recent update here.

INDIVIDUAL ACCOUNTABILITY FRAMEWORK (IAF)

Further key dates for the operationalisation of the IAF are on the horizon. By way of reminder, the current timeline is as follows:

• Central Bank Consultation CP 153: the consultation period ran from 13 March to 13 June 2023. A feedback statement is expected in Q4 2023.
• Amended Fitness & Probity Investigations Guidance and Regulations: these were published in April 2023 after the first commencement order was signed. Read our insights here: Fitness and Probity: New Regulations and Guidance published.
• Public consultation on changes to the Administrative Sanctions Procedure: this was published in June 2023, and closed on 14 September 2023. Read our insights here: Insights from the Central Bank’s Administrative Sanctions Procedure (ASP) Consultation.
• Conduct Standards: these will apply from end-December 2023 (the relevant provisions of the IAF Act will become operational on 29 December 2023).
• New certification requirement under the Fitness & Probity regime: this will apply from end-December 2023 (the relevant provisions of the IAF Act will become operational on 29 December 2023 and the related regulations which formed part of CP 153 are expected to come into force around the same time).
• Holding companies to be subject to the F&P regime: this will be from end-December 2023 (the relevant provisions of the IAF Act will become operational on 29 December 2023 and the related regulations which formed part of CP 153 are expected to come into force around the same time).
• SEAR: expected to apply from 1 July 2024 (the key deliverable for SEAR is the set of regulations which formed part of CP 153 – those regulations are expected to come into force on that date).

MARKETS IN CRYPTO-ASSETS REGULATIONS (MicA)

MiCA’s optional grandfathering period allows EU Member States to permit entities already providing crypto-asset services in their jurisdiction to continue providing those services from 30 December 2024 until as late as 1 July 2026.

One of the questions posed in the Department of Finance’s public consultation on the limited national discretions under MiCA (which ran from 9 August to 15 September 2023) was whether Ireland should allow the transitional period and, if so, for how long. A feedback statement is awaited from the Department on that consultation.

ESMA has published a letter to the EU Council’s Economic and Financial Affairs Committee, and a statement on supervisory convergence to crypto-asset service providers and their national competent authorities. Each highlights a number of issues which will need to be taken into account by the Department of Finance and the Central Bank as part of their MiCA-related work. In particular, ESMA is concerned about potentially extensive use of the grandfathering option and has asked Member States to reduce that period to a maximum of 12 months, and to confirm to the European Commission and ESMA (preferably by the end of 2023) whether they will do so.

INVESTMENT FUNDS: MACROPRUDENTIAL POLICY

The Central Bank’s Discussion Paper on an approach to developing a macroprudential policy framework for investment funds closes for feedback on 15 November 2023.

The Discussion Paper looks at what the objectives of a macroprudential framework would be; outlines key principles that could underpin its design; discusses potential tools that could be used to achieve these macroprudential objectives; and considers a range of practical issues that would need to be progressed to make such a framework operational.

The Discussion Paper also seeks views on a number of issues relating to the fund sector, including systemic risks; current regulatory framework; objectives and principles of macroprudential policy; design of macroprudential tools; and considerations for operationalising this framework.