Irish Central Bank prepares to welcome UK firms after Brexit

According to the Industrial Development Agency, more than 100 UK firms have requested to relocate their operations to Ireland. Will Ireland welcome UK firms after Brexit?

4 January, AtoZForex – Director of Policy and Risk at the Central Bank of Ireland, Gerry Cross, stated that the bank was ready to help businesses seeking to move their operations to Ireland. As the bank understands that the firms might face certain issues. Which includes time needed to establish an entity in Ireland, getting authorization and model approval. Gerry Cross mentioned that the bank had seen inquiries from a significant number of firms. These entities operate in different areas and cover a broad range of activities. Mr. Cross states,

“We have no objection to thinking constructively with firms about how this sequencing challenge might be addressed, without undermining our commitment to our responsibilities.”

Ireland prepares to welcome UK firms after Brexit

At the moment, financial firms based in London experience uncertainty over the conditions of the UK exit. In particular, will the country remain its passporting rights or not. A week ago, the Industrial Development Agency (IDA) reported that over 100 companies, the majority of which are based in the City, had asked about moving to Ireland following Brexit. Mr. Cross has commented that:

“There is also the important question of group-wide models and how they might operate. This can be a very complex question with many aspects including questions of supervisory reliance.”

The Central Bank is boosting staff numbers in its insurance supervision board. As it looks forward to welcoming insurers shifting from London. However, the bank refused the reports that it was discouraging companies wishing to relocate investment banking or trading operations to Dublin due to the regulatory concerns.

Yet, the bank outlined that it does not want entities establishing small operations in the country in order to retain passporting rights. According to Gerry Cross, companies have to show that they have “proper business models, with convincing risk identification and management, suitable products, sound finances, and strong boards and executives”. Following it, they can seek to get authorization in Ireland. Mr. Cross added that the central bank has not excluded and is not planning to exclude any business model on financial stability basis.

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