From black propaganda to regulatory arbitrage, it seems we’re not about to see the last of the blame game that Brexit has unleashed in Ireland for insurance companies’ failure to set up new EU hubs in the country.
This time it’s the insurers themselves pointing their fingers – at the Central Bank of Ireland, no less.
“The insurance industry has dismissed allegations that rival EU countries are cutting corners to win Brexit-related opportunities and blamed a lack of pragmatism by the Central Bank for Dublin’s failure to attract any major insurance company relocating from London,” reported
The Times.
According to
The Times, the Central Bank is refusing to license insurers that it says want to use Dublin as a ‘brass plate’ location from which to operate in the EU.
“Eoghan Murphy, the junior minister with responsibility for financial services, has accused other countries of engaging in ‘regulatory arbitrage’ to win business,” said the report.
Insurance Ireland chief executive Kevin Thompson disagrees though, quoted by The Times as saying, “Solvency II established a standard of regulation that prevents brass plating and ensures that any Brexit-related relocations are in line with Europe-wide standards.”
Last May, Insurance Ireland called for regulatory ‘grandfathering’ of UK-regulated insurers looking to locate in Ireland. “This would give an insurer regulated by the Prudential Regulation Authority (PRA), with a good record, a credit in the approval process which would enable them to trade in Ireland on a similar basis as their current circumstances in the UK,” said the industry trade body on its website.
It also believes a regulatory corridor or a joint grandfathering agreement should be established between the Central Bank of Ireland and the PRA to allow for rapid approval of Irish entities who are seeking to export their services to the UK.
Meanwhile, an official from Ireland’s Finance Department recently cried foul over what he believes is “black propaganda” amid stiff competition among Europe’s financial centres to become the next London.
A report by
The Irish Times said Paul Ryan, head of the department’s international finance division, cited feedback from financial industry sources saying some jurisdictions seeking to win Brexit business have resorted to highlighting negatives about moving to Ireland.
Related stories:
Why insurers aren’t moving to Dublin
Is Ireland fighting a losing Brexit battle?
