Looking Ahead: Irish Developments

IRISH DEVELOPMENTS

Markets in Crypto-Assets Regulation

The Department of Finance’s public consultation on the limited national discretions under the Markets in Crypto-Assets Regulation (MiCA) was launched on 9 August 2023 and closes for feedback on 15 September 2023.

The four national discretions which are the subject of the consultation relate to:

• Whether Ireland should exercise the discretion to provide that a record of an explanation for the delayed disclosure of inside information is to be provided only on the request of the competent authority. MiCA allows issuers, offerors or persons seeking admission to trading of a crypto-asset to delay public disclosure of inside information if certain conditions are met (including, for example, where disclosure would prejudice the legitimate interest of the issuer, offeror or persons seeking admission to trading, and where the delay in disclosure is not likely to mislead the public).
• Whether Ireland should exercise the discretion to provide for higher levels of administrative penalties (noting that it will be important that breaches are covered by the Central Bank’s Administrative Sanctions Procedure).
• Whether firms already registered with the Central Bank as virtual asset service providers can benefit from the full 18-month transition period under MiCA.
• Whether a simplified application procedure will be made available during the transition period.

Individual Accountability Framework

The Central Bank’s 12-week consultation on proposed changes to its Administrative Sanctions Procedure (ASP) (here), which follows its consultation on the Individual Accountability Framework which concluded on 13 June 2023 (here) closes for feedback on 15 September 2023.

The Central Bank plans to consolidate and replace its existing guidance with a single set of guidelines to be known as the ‘Administrative Sanctions Procedure Guidelines’.

As well as consolidating existing guidance, the new draft guidelines reflect changes to the Central Bank’s ASP introduced under the Central Bank (Individual Accountability Framework) Act 2023 (the IAF Act) which put various aspects of the ASP on a statutory footing, as well as changes arising from the Central Bank’s review of international best practice and its own experience of implementing the ASP to date.

Although the new draft guidelines have been largely shaped by the IAF Act, other notable aspects include publication (for the first time) of the Central Bank’s methodology for the determination of monetary penalties for firms and individuals, planned changes to the Central Bank’s procedures for the disclosure of documents, and the planned split of the settlement process into three distinct types: undisputed facts settlement; investigation report settlement; and no admissions settlement.

For detailed analysis of the Central Bank’s proposals, read our latest update here: Insights from the Central Bank’s Administrative Sanctions Procedure (ASP) Consultation

Section 110 / Funds Sector Review

The Department of Finance’s public consultation on the future of the funds sector (Funds Sector 2030: A Framework for Open, Resilient & Developing Markets) closes for feedback on 15 September 2023 (following which a draft report will be sent to the Minister for Finance in mid-2024).

As part of the wide-ranging feedback sought by the Department are two questions that are specific to the Irish Section 110 SPV framework: which policy objectives that framework should be supporting, and what changes (if any) are needed to ensure that the Section 110 framework supports those objectives.