Authorisations rejected as ‘unprecedented’ firms apply in wake of Brexit

THE Central Bank rejected applications in the first half of the year from 10 insurance and re-insurance companies seeking authorisation to operate here in the wake of Brexit because of shoddy paperwork.

The Central Bank, which is dealing with an “unprecedented” volume of applications as a result of Brexit, says that the vast bulk of incomplete applications are returned to the regulator within two weeks as applicants seek a speedy turnaround on their authorisation requests. Across all sectors, 55 applications were withdrawn by the applicant and 25 more were deemed “dormant”.

The Central Bank refuses to be drawn on the number of applications or the number of authorisations the regulator has issued to date which also carries huge sensitivities for bodies such as the IDA. However, as the prospect of a no-deal Brexit looms, it has increased headcount, recruited heavily and has re-allocated senior and experienced staff from other important tasks to ensure that it can process the applications. It is understood that in excess of 150 applications have been made to the Central Bank. The increase in authorisation applications is being driven in many cases by financial services firms that have existing licences to operate in Ireland but are seeking authorisations to expand their product offerings here. Discussions have also been held with the European Securities and Markets Authority (ESMA) about the dramatic upsurge in applications for authorisations by firms, including banks, insurers and re-insurers.

“We are committed to providing a clear, robust and timely authorisation process, while ensuring a rigorous assessment of each application,” said Deputy Governor Ed Sibley (inset). “This gatekeeper role mitigates financial stability risks and protects customers and market integrity in Ireland and across Europe. It is imperative that any new firm authorised here meets the high standards that are expected of financial services firms authorised anywhere in the European Union”.