Dáil Éireann Debate, Thursday - 14 January 2021
67. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the financial services sector has been affected by Brexit negatively or positively; and if he will make a statement on the matter. [2157/21]
View answerMy Department has been participating in whole of Government preparations for Brexit since before the UK referendum in 2016 and, in line with the Government’s overall approach, this work intensified during 2020 ahead of the end of the transition period.
My Department has been working closely with the Central Bank of Ireland and the National Treasury Management Agency (NTMA), through the Financial Stability Group, and through the Brexit Contact Group, to limit the impact of key identified risks in the Irish financial system and review progress on readiness planning. This work and engagement has sought to ensure that the sector is adequately prepared, and that financial services firms and market participants have contingency plans in place to cope with the possible effects of Brexit, with as little disruption for consumers, investors and markets as possible.
On the basis of its work and engagement across the sector, the Central Bank has been able to assure me that the financial services sector is well prepared and resilient enough to manage the changes associated with Brexit. The Central Bank has received a very limited number of questions from financial services firms or consumers on issues arising as a result of Brexit.
On the prospects for the international financial services sector, the nature, scale and complexity of Ireland’s international financial services sector will change in a number of ways as a result of the financial services firms relocating from the UK as a result of Brexit and those looking to set up operations in the EU for the first time. The industry in Ireland has become broader and more diverse with more firms carrying out a greater range of regulated activities than at any time.
The full impact of Brexit for Ireland’s international financial services sector may not materialise for some years. At present, firms are establishing the foundations of a new or significantly expanded presence in Ireland, creating a platform for future growth opportunities in all sectors: insurance, banking, and investment management.
A number of government strategies have sought to grow the international financial services sector over the last number of decades, and these strategies were in place long before Brexit. The latest iteration of these strategies is ‘Ireland for Finance, the strategy for the development of Ireland’s international financial services sector to 2025’.
The Government and various state agencies continue to implement that Strategy, (and indeed industry lead on some appropriate action measures under the annual action plans) and are working to fully capture any opportunities for inward investment that emerge through promoting Ireland’s strengths as a leading financial services centre.
