Central Bank Commission approves restructuring of financial regulation functions

The Central Bank of Ireland Commission has approved the restructuring of the Central Bank’s Financial Regulation functions. The restructure is designed to ensure the Central Bank is suitably equipped to meet its expanded regulatory mandate.

Financial regulation functions will be organised under two pillars - Prudential Regulation and Financial Conduct.

• The Prudential Regulation pillar will include the directorates for credit institutions; insurance; and asset management supervision. 
• The Financial Conduct pillar will include the directorates for consumer protection; securities and markets supervision; and enforcement.
• The Policy and Risk Directorate will support both pillars but will be part of the Financial Conduct pillar for administrative purposes.

The Central Banking pillar and the Operation's pillar of the Central Bank will remain unchanged.

The structure of the senior management team will be amended accordingly. Prudential Regulation will be led by a Deputy Governor (Prudential Regulation), which is a statutory position. The role holder will also be an ex officio member of the Commission and responsible for the Bank’s representation at the Single Supervisory Mechanism (SSM), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA).

The Financial Conduct pillar will be led by a newly-created role: Director General (Financial Conduct). The role holder will also be responsible for the Bank’s representation at European Securities and Markets Authority (ESMA). Although not a member of the Commission, the Director General (Financial Conduct) will provide reports at each Commission meeting and will be fully available to the members of the Commission.

Both role holders will report directly to the Governor and will be members of the Central Bank’s most senior management committee, the Governor’s Committee. In addition, a new Financial Regulation Oversight Committee will be established to ensure effective coordination of the regulatory work of the Central Bank. The membership of the oversight committee will consist of the Governor, both Deputy Governors and the Director General (Financial Conduct).

Announcing the restructure, Governor Philip R. Lane said: “The changes are driven by two factors. First, due to the expanded mandate of the Bank and the shift to a more intrusive method of supervision, the scale of financial regulation activity has sharply increased in recent years. Second, the level of European engagement has also been transformed, with the SSM in particular requiring extensive input. Allied to that, this restructuring places clear emphasis on the importance of our financial conduct mandate, which includes consumer protection, investor protection, the orderly operation of financial markets and enforcement.

“This restructuring will provide the Central Bank with strong foundations to carry out its vital financial regulatory mandate, ensure the Central Bank can maintain its strong performance across the European Supervisory Authorities and ensure robust protection of consumers and investors in line with our mandate and our mission to safeguard stability and protect consumers.”

The competitions for the Deputy Governor and Director General roles will open next week.