The Central Bank of Ireland (the “Central Bank“) hosted its fourth annual Financial System Conference on 25 November 2025. Governor Makhlouf’s (the “Governor“) opening remarks set out a clear, pragmatic agenda for regulation in an era of geopolitical fragmentation, stretched market valuations, rising sovereign debt and rapid technological change. His message was unambiguous: stability, resilience and consumer confidence depend not on the volume of rules, but on the quality of regulation, the effectiveness and fairness of supervision and the trust they sustain.
At the heart of the speech was the Central Bank’s enduring regulatory philosophy, anchored in six principles: forward-looking risk identification; connection to those it serves; proportionality; predictability; transparency; and agility. These principles ensure the work that the Central Bank does remain effective, proportionate, and trusted even as the financial system, the regulatory system and the global order continues to evolve.
The Governor outlined tangible progress since 2021: streamlined, risk-based supervision; more transparent, consistent and predictable authorisations without compromising standards; and improved engagement and clarity in the Fitness and Probity processes. The first Sandbox Programme has validated a collaborative model for safe innovation, while the mortgage measures demonstrate how regulation learns in practice—evaluated annually and recalibrated where the balance of benefits and costs shifts.
The next phase focuses on coherence, proportionality and alignment, particularly with evolving EU law. Domestically, authorisation “gatekeeping” will be further centralised to enhance consistency and predictability. Across sectors, frameworks are being reviewed to eliminate overlap and simplify navigation without diluting protections. Concrete steps include a compatibility review of more than 50 insurance instruments ahead of Solvency II reforms; retirement or revision of domestic AML guidance, including the 2021 sectoral guidelines, as the EU Anti-Money Laundering Authority and directly applicable EU Regulation take effect; and targeted changes to reduce administrative load in the Pre-Approval Controlled Function framework following the introduction of the Individual Accountability Framework and SEAR. Corporate governance requirements will be reviewed in 2026 to remove duplication and embed proportionality, with a SEAR review scheduled for 2027.
The Governor highlighted the aim is not deregulation but better regulation—clear, consistent, coherent rules applied predictably and designed to achieve outcomes without unnecessary burden. To this end, the Central Bank will consult on a new Regulatory Impact Assessment Framework next year to further hardwire evidence-based policymaking and will continue active engagement with others on how to streamline the European rulebook to strengthen the Single Market.
As digitalisation, AI and new forms of intermediation reshape finance, the demand for clear, agile and trusted regulation will only rise. The Central Bank’s priority is the resilience of Ireland’s financial system and the advancement of the best interests of citizens and the economy, anchored in clarity of purpose, coherence of process, and consistency of principle. Regulating well is not a concession to simplicity; it is a commitment to better outcomes—resilient markets, protected consumers and sustained confidence at home and abroad.
