Finance

Individual Accountability and SEAR

Non-Executive Directors

The Senior Executive Accountability Regime (SEAR), which came into effect on 1 July 2024, will apply to non-executive directors from 1 July 2025.

For more information, read our insights here: IAF/SEAR Update: Central Bank publishes final Guidance and SEAR Regulations.

Fitness and Probity - New Central Bank Unit

The Central Bank's new dedicated Fitness and Probity Unit will become operational in January 2025, at the same time that other key changes to the Central Bank’s operating structure come into effect.

For more information, read our insights here: Fitness and Probity: Central Bank announces establishment of dedicated Fitness and Probity Unit - Arthur Cox LLP and Fitness & Probity: Report published following independent review - Arthur Cox LLP.

Fitness and Probity Certification Reporting Requirements from 2025

As part of the enhancements to the current Fitness and Probity regime introduced under the Individual Accountability Framework, regulated firms are required to proactively certify that individuals carrying out controlled function (CF) and pre-approval controlled function (PCF) roles within the firm meet the Central Bank’s Fitness and Probity Standards.

In December 2024, the Central Bank published PCF Annual Confirmation and CF Certification Guidance to assist firms in relation to submitting the Annual PCF Confirmation and the new CF Certification Confirmation through the Central Bank’s Portal. The first CF Certification Confirmation submission to the Central Bank will be required in 2025. Both the PCF Annual Confirmation and CF Annual Certification facility opened on the Central Bank’s Portal on 1 January 2025 to facilitate the submissions.

Business Standards

Under the Central Bank (Individual Accountability Framework) Act 2023, the Central Bank was empowered to prescribe Business Standards for all or specific classes of regulated financial service providers. The Business Standards are in addition to the Common Conduct Standards and Additional Conduct Standards which have applied since 29 December 2023. The draft ‘Standards for Business’ Regulations formed part of the Central Bank’s March 2024 consultation on CPC reforms and were divided into ‘Standards for Business’ and ‘Supporting Standards for Business’. Once finalised, they will replace the current ‘General Principles’ in Chapter 2 of the CPC. We expect these Regulations to be signed into law early in Q1 2025.

For more information, read our insights here: Individual Accountability Framework: Central Bank consults on Business Standards as part of CPC review - Arthur Cox LLP.

Insurance

While the transposition deadlines for the Directive amending Solvency II and the Insurance Recovery and Resolution Directive (both published in the Official Journal in January 2025) are end-January 2027, preparatory work is likely to begin in 2025.

For more information, read our insights here: EU publishes amendments to Solvency II and IRRD - Arthur Cox LLP.

Limited Partnerships

During 2025, we expect to see the Bill arising from the publication, by the Department of Enterprise, Trade and Employment, of the General Scheme of the Registration of Limited Partnerships and Business Names Bill in late July 2024, setting out proposals to reform the Limited Partnerships Act 1907.

For more information, read our insights here: Limited Partnerships: Proposals for reform published - Arthur Cox LLP.

Markets in Crypto Assets Regulation

Application to Crypto Asset Services Providers

With the Markets in Crypto Assets Regulation (MiCA) applying to crypto asset service providers (CASPs) from 30 December 2024, the transition period for firms that were already providing crypto services on that date ends on 30 December 2025. In tandem with the publication of its information on its authorisation process for CASPs under MiCA, together with FAQ, the Central Bank encouraged potential CASP applicants (including existing authorised virtual asset service providers (VASPs)) to engage with the Central Bank in good time. The application and assessment process for VASPs has, according to the Central Bank, usually taken at least 10 months – as CASP applications will be more complex, a longer timeline is likely.

The Central Bank formally published its MiCAR Authorisation and Supervision Expectations on 16 December 2024.

For more information, read our insights here: MiCA: Grandfathering period shortened to 12 months; Department publishes Feedback Statement

Overlap between MiCA and PSD2

The European Banking Authority plans to publish a response by April 2025 to the recent letter from the Commission signposting an overlap between e-money tokens (EMTs) as cryptoassets regulated under MiCA and electronic money (or funds) under the Revised Payment Services Directive (PSD2). The Commission has asked the EBA to consider issuing a “no action letter” on the enforcement of the PSD2 requirements on authorisation as regards services with EMTs provided by CASPs that may be inadvertently covered by PSD2 (pending upcoming changes to PSD2).

Markets in Financial Instruments Directive

Changes to Markets in Financial Instruments Directive (MiFID II)

Member States must transpose, by 29 September 2025, the recent amendments to MiFID II.

Other changes to MiFID II arising from the EU Listing Act, which focus on investment research, are not due for transposition until June 2026 (and are the subject of an ESMA consultation which closes on 18 March 2025).

Marketing Communications to Retail Clients by Irish firms

Irish-authorised MiFID investment firms, credit institutions and fund management companies that provide MiFID II services to retail clients have a 31 January 2025 deadline to take the actions required by the Central Bank in its recent Dear CEO Letter - Common Supervisory Action on the MiFID II Marketing Communications Requirements.

For more information, read our insights here: MiFID II Marketing and Advertising Framework: Central Bank ‘Dear CEO’ Letter and Next Steps.

Non-Banks

The European Commission’s targeted consultation on macro-prudential policies for non-bank financial intermediaries closed on 22 November 2024. ​This area was included in the mission letter with priority items for the incoming EU Commissioner, so we expect to see a feedback statement arising from that targeted consultation during H1 2025.

For more information, read our insights here: Non-Banks: European Commission consults on macroprudential policies - Arthur Cox LLP.

Payments

Ireland - Access to Cash Bill

The Finance (Provision of Access to Cash Infrastructure) Bill will be reintroduced to Dáil Éireann in Q1 2025 once the new Government is in place.

For more information, read our insights here: Access to Cash Bill published.

Ireland - National Payments Strategy

The above Bill is closely linked to the recently-launched National Payments Strategy which contains a number of key steps to be actioned beginning in 2025. Notably, this includes an action for the Department of Finance (with input from the Central Bank) to make recommendations to the Minister for Finance (by the end of June 2025) on whether the CBI should have liquidation powers in relation to payment firms.

For more information, read our insights here: National Payments Strategy: Notable Actions / Recommendations.

EU - Revised EU Payment Services Framework

The revised EU payment services framework is a priority item for the new EU Commissioner (see the mission letter for those priorities). It is hoped that trilogue negotiations between the Council and Parliament will begin in H1 2025. Combatting payment fraud, levelling the playing field between banks and non-banks, improving the open banking framework and improving the availability of cash are key pillars of that June 2023 Commission proposal.

EU – Financial Data Access Framework

Following confirmation from the Council that it had agreed its negotiating position on the proposed framework for financial data access, trilogues are expected to begin in H1 2025 with the aim of finalising the framework for publication in the Official Journal by the end of 2025.

EU – Instant Payments Regulation

2025 will also see a number of key deadlines for payment services providers (PSPs) under the EU Instant Payments Regulation. Euro-area PSPs must provide the payment service of sending instant credit transfers in euro by 9 October 2025 and the payment service of receiving credit transfers by 9 January 2025.

For more information, read our insights here: Instant Payments Regulation: First set of new requirements apply from 9 January 2025 - Arthur Cox LLP

EU – Digital Euro Project

By the end of 2025 the ECB’s Governing Council will decide whether to move on to the next phase of preparations in its digital euro project. The decision on whether to issue a digital euro will only be taken by the Governing Council once the EU’s legislative framework has been adopted.

Retail Investment Package

Further progress is expected on the proposed retail investment package in Q1 2025 following the recent suggestion from ESMA and EIOPA to the Commission, Council and Parliament that the existing proposals be complemented by additional proposals reflecting the April 2024 conclusions of the European Council on the Capital Markets Union as well as recommendations made by ESMA and EIOPA in papers on capital markets and on retail investor protection and pan-European personal pension products respectively.

For more information, read our insights here: Retail Investors and the EU Capital Markets: Commission publishes retail investment package - Arthur Cox LLP, The European Commission’s Retail Investment Strategy - Arthur Cox LLP and Capital Markets Union and greater access to sources of finance: ESMA publishes Position Paper - Arthur Cox LLP.

Section 110 Companies

The Funds Sector 2030 Final Report, arising from the Funds Sector 2030 consultation, did not recommend any substantive changes to the Irish Section 110 framework. However, we expect to see progress on its Section 110-related recommendations in 2025 including that the Department of Finance and Central Bank carry out more work to see what additional measures could be introduced to mitigate any AML / CFT risk; that legislation be introduced to require the Revenue Commissioners to publish a list of all SPVs that avail of the Section 110 framework; and that consideration be given to requiring all Section 110 SPVs to have a legal entity identifier.

Settlement

Move to T+1 Settlement Cycle

In advance of the planned EU move to T+1 settlement cycle on 11 October 2027, key 2025 workstreams will include finalising the solutions that are needed (deadline is Q3 2025), starting work on the required changes to Article 5(2) of the Central Securities Depositories Regulation (CSDR) and the RTS on Settlement Discipline (the deadline for ESMA’s report on proposed changes to those RTS is Q3 2025), and operationalising the governance structure (planned for H1 2025).

For more information, read our insights here: T+1 Update: ESMA recommends move to T+1 on 11 October 2027 - Arthur Cox LLP.

CSDR Penalty Mechanism

Following the publication by ESMA of its Final Report with technical advice to the Commission on the penalty mechanism under the CSDR, we expect confirmation from the Commission on any planned Delegated Acts arising from that advice in H1 2025.

For more information, read our insights here CSDR: Targeted Reforms published in Official Journal / Looking ahead to 2024 - Arthur Cox LLP

Final ESMA reports in respect of technical standards on the information to be provided by European CSDs to their national competent authorities for review and evaluation and the information to be notified to ESMA by third-country CSDs are expected to be submitted to the Commission in mid-January 2025.