The Finance Dublin Yearbook serves two purposes essentially, it helps define the financial services industry particularly its international financial services businesses, and it provides a mid term review and outlook, covering the years 2023 and 2024 of the key environmental issues and developments affecting financial services. This is the 31st edition of the Yearbook, first published in 1991 four years after the designation of a Government-sponsored initiative, the ‘IFSC’ in 1987. Since 1987, Finance (Dublin), has chronicled the evolution of financial services in Ireland in its wider international context on a monthly basis. At the heart of the Yearbook are the profiles of the companies, organisations, and people that make up the centre, the jurisdiction of Ireland.

When, in 1987, an “international financial services centre” was proposed to be set up in Ireland it was questioned as a fanciful idea, even though, at the time, there were very good and strong grounds for it to be the great success that it later became - such as the fact that Ireland was, and is, the second oldest distinct common law jurisdiction in the world. Today, it is evident that it is a financial centre of middle rank in global terms, in some areas punching well above its weight. But there are challenges to even this status while at the same time there are ample grounds for seeing further success, a vision indeed shared by Neale Richmond, the newly appointed Minister of State for the industry in the Department of Finance in an interview in this edition of the Finance Dublin Yearbook (p10). On all of the standard indicators of success, “IFSC I” enjoyed a steady year in 2023, and entering 2024 - reflecting the global markets cycle that sees heightened interest rates, sustained worries about public sector debt and inflation, and robust equity, property and commodity markets. ETFs, and the exchanges that underlie them have reflected prosperous asset markets, and this has underpinned the prosperity of the IFSC, notably its investment funds and insurance markets. Against the background of heightened uncertainty in markets that has been there even before the Covid outbreak of Q1 2020, 2024 began on a positive note, marked by renewed highs in equity markets and sustained hopes that interest rates, or more critically inflation is returning to sustainable levels.

In a wide ranging interview covering his three pillar brief at the Department of Finance newly appointed Minister of State Neale Richmond outlines the development potentials in IFS, insurance, and credit unions. Commenting on the EU context for the industry, the Minister references groundwork being laid by his colleague Paschal Donohoe, in advance of the Irish presidency of the EU in the latter half of 2026. On the issue of domestic financial services regulation and enforcement, the Minister welcomes the independent review of the Fitness & Probity regime of the Central Bank, which, he says, “should also ensure that, going forward any changes to the regime provide for robust, fair and transparent processes”.

The IFSAT decision on Valentine’s Day 2024 that the Central Bank of Ireland had not applied fair procedures when fulfilling its role of approving a funds industry director for PCF roles was not a case of the mouse that roared - it shows that IFSAT is a jewel in the crown of Ireland’s regulatory system, and that when called upon it worked. JAMES GRENNAN, one of the original authors of the draft legislation that brought IFSAT into being back in 2003 assesses the 91 page judgement.

Brian Hayes, Banking & Payments Federation Ireland’s Chief Executive, on the continued growth and contribution of the international financial services sector to the Irish economy, the growing importance of Ireland as a global centre for technology and innovation in banking and the increasing regulatory burden faced by the industry. The Federation of International Banks Ireland (FIBI), an affiliate of Banking & Payments Federation Ireland, represents over 30 international banking members including many of the largest financial service providers in the world.

The leaders of BNP Paribas’ major businesses in Ireland, led by CEO and Country Head Ireland, Derek Kehoe, outline the growth of the business in Ireland, profiling their businesses and service offerings and how they form part of BNP Paribas’ global network to the benefit its Irish and international clientele.

Responding proactively to change has been the hallmark of Ireland and IDA’s success, “and we will continue to be agile, resourceful, and committed in our aim to attract FDI to Ireland”, says MAEVE McCONNON, Head of Department, International Financial Services Division at IDA Ireland.

Eoin Caulfield and Marguerite Sinnott of the William Fry (Re)Insurance Unit discuss Irish and European regulatory developments in 2024 and how they are embracing digitalisation “in a relatively light touch but effective way”.

The payment and e-money sector is rapidly evolving and growing, and so are the risks to which institutions are exposed. It is therefore unsurprising that the regulator is asking more of firms in 2024 than ever before. However, says ALISON DONNELLY “any company that becomes regulated should be better placed for long-term sustainability”.

Relationships between regulated firms and the Central Bank of Ireland are crucial for managing risk events and regulatory breaches effectively when they inevitably occur writes Forvis Mazars’ Kian Caulwell. Establishing a constructive relationship based on mutual respect and trust makes for a smoother engagement process and better outcomes, he writes.

Global ETF assets hit a record high of $12.7 trillion at the end of Q1 2024 write EY’s Lisa Kealy, Kieran Daly and Gerard Crossan. They analyse the market in 2023 and conclude there is still huge scope for growth that could see the sector reach $25 trillion in 2030.

Following its introduction in 2015, only a modest number of ELTIFs were established in a small number of EU jurisdictions due to several restrictive features of the original ELTIF Regulation. That is set to change writes ETAIN de VALERA “and Ireland as a jurisdiction is primed and ready for the establishment of the new ELTIF”.

The increasingly cross-functional financial services regulatory landscape means regulated entities need to keep abreast of developments across all sectors writes Forvis Mazars’ Chris Monks. Closer collaboration between the European Supervisory Agencies and the increasing importance of non-financial services inputs, such as ESG, highlights the growing necessity for a holistic approach to regulatory awareness. He analyses ESA priorities for 2024 including the ESA joint committee’s Work Programme for the year.

Beyond disruption, the successful Irish bank-fintech collaborations paint a powerful picture of a future shaped by partnership and healthy competition. They prove how Fintech agility can support banking stability, fostering a more dynamic and customer-centric financial services ecosystem, writes Richard Warren-Tangney, a partner in Financial Services at BDO.

2024 will be considered the year of the implementation for individual accountability writes Matheson’s Niamh Mulholland, who says the importance of gatekeepers in FS long predates the IAF, analyses the impact of the ‘AB’ decision and the difficulties facing the Central Bank as ‘investigator, regulator, and decision-maker’ in the F&P realm.

Valuations were centre stage for regulators in 2023 writes Forvis Mazars’ Cian Higgins who analyses three major reports released during the year from ESMA, IOSCO and the Central Bank of Ireland and looks at a forthcoming report from the UK’s Financial Conduct Authority that shows the regulatory focus in the area looks set to continue throughout 2024.

Now seems like a good time to look back and take stock of the unprecedented volume of new legislation and regulatory initiatives that have been adopted at EU level over the past number of years and which are aimed at integrating sustainability into the financial system writes Éamon Ó Cuív.

On 29 February 2024, the Central Bank of Ireland published its 2024 Regulatory and Supervisory Outlook report, setting out its view on key trends and risks in the financial sector, along with its regulatory and supervisory priorities in the context of those risks. It identifies the risks as being classified in respect to six overarching supervisory priorities.

The management and boards of directors of the aviation companies in Ireland are comprised of highly regarded and experienced executives with a global perspective write MARIE O’BRIEN and SUSANNE CUNNINGHAM of A&L Goodbody. They say that their views on the economy and what is needed for businesses to grow “carry great weight and, as aircraft leasing companies become more embedded in the broader Irish corporate environment, the benefits of such wisdom will multiply”.