Brexit Developments – Gerry Cross, Director of Policy & Risk

• Central Bank continues to see high level of Brexit-related activity
• Central Bank approach to authorisation is well-structured, transparent and predictable
• Important role for European supervisory authorities in the context of Brexit

Speaking at a Brexit Breakfast Seminar in New York, Director of Policy & Risk, Gerry Cross, noted that in the uncertainty created by Brexit, the Central Bank was seeing significant levels of interest from UK firms considering re-locating their European business to Ireland.

Mr Cross said the Central Bank’s approach to authorisations is well-structured, transparent and predictable. For applications of significant size or importance, a dedicated team will be established with a lead point of contact. "It is also worth noting that while we regulate sectorally, we adopt a closely coordinated and appropriately integrated approach to our work", he added.

Mr Cross welcomed the important work being carried out by European authorities to achieve a consistent approach to Brexit-related authorisations in different jurisdictions and to limit the opportunity for regulatory arbitrage. Recent and ongoing work by the ECB and the European Supervisory Authorities means that firms should make their location decisions on the basis of reasons other than differing approaches to authorisation and supervision.

On Brexit, and the interactions between the Central Bank and firms, he said “At the Central Bank we expect to see a material increase in applications for authorisation or for extension of existing business. We have already seen a number of these either come through or indications of intent.” He added that the full picture will not be known for a while.