The Central Bank’s Regulation and Supervision Priorities for 2023
Wed Mar 15 2023
A Dear CEO letter was issued by the Central Bank on the 13th of February outlining their regulation and supervision priorities for 2023. The key ones relevant to the intermediary sector are:
- Providing a clear, open and transparent authorisation process through active and constructive engagement with industry and other stakeholders. They are focused on creating the regulatory context in which the potential benefits of innovation for consumers, investors, businesses and society can be realised, while the risks are effectively managed and mitigated;
- Assessing and managing risks to the financial and operational resilience of firms. This includes the potential decline in asset quality arising from prevailing inflationary pressures, lingering effects from the pandemic and a slowdown in the UK economy;
- Consulting and engaging on regulatory developments under the Consumer Protection Framework and Individual Accountability Framework leading to enhancements in existing and new regulations;
- Consulting on their approach to Innovation that will include an exploration of new ways of engagement with innovators and their products;
- Implementing new EU regulations on digital operational resilience (DORA) and markets in crypto assets (MiCA);
- Strengthening the resilience of the financial system to climate change risks and its ability to support the transition to a climate-neutral economy, along with implementing the EU’s Sustainable Finance Disclosures Regulation.
If you have any further queries, please don’t hesitate to contact the compliance team at firstname.lastname@example.org.