On 23 January, Gerry Cross, the Director of Policy and Risk at the Central Bank, made remarks at the Brexit and Asia: Implications for Financial Services in Ireland event.
The Central Bank has received a substantial number of queries from firms as a result of Brexit. Firms are interested in getting to know the Central Bank as a regulator and the Central Bank is increasing staff numbers to deal with the large numbers of applications it has received.
Mr. Cross expressed that the Central Bank is focused on ensuring that before it authorises a firm in Ireland, it is satisfied that the firm will have a substantial business in Ireland enabling the Central Bank to supervise it effectively.
On the issue of outsourcing, Mr. Cross noted that although an activity may be outsourced, the responsibility for it cannot.
With regard to the Central Bank's opinion on group integrated approaches the Central Bank will want to have a clear understanding of: how risks are accepted, distributed, managed and mitigated within the group; how the local entity fits into this and how group solutions are adapted and suited for local application. The Central Bank will be looking to see that risks are well understood, appropriately tailored, effectively managed and applied locally. The Central Bank will also be solution orientated and their approach will be constructive. They are aware of the practical constrains firms are dealing with regarding logistics and timing and will work with the UK and other authorities to deal with issues efficiently and effectively.
The Central Bank has not ruled out and does not plan to rule out any particular business model on financial stability grounds.
A link to Gerry Cross's remarks can be found here.