Central Bank aims to ‘streamline’ regulation
A report from the Central Bank has set out its plans to make its regulation of the financial-services sector more efficient and less complex.
The regulator says that its initiative is in line with the EU’s focus on improving competitiveness and streamlining rules and processes.
Governor Gabriel Makhlouf said, however, that this would be done “without weakening the important protections we have built over the past decade”.
“Streamlining is not about lowering standards. It is about improving quality, coherence and clarity, ensuring the regulatory framework works for consumers, firms and the economy,” he stated.
The report published today (10 December) outlines the Central Bank’s work across four areas:
- Supervision,
- Regulation,
- Gatekeeping, and
- Reporting and data.
Rulebook updates
It says that a new approach to supervision, introduced earlier this year, brings together multi-disciplinary teams, sharper risk focus, and clearer supervisory communications, leading to more coherent engagement with firms, stronger proportionality, and streamlined supervisory processes.
On regulation, the Central Bank is updating its domestic rulebook to remove or consolidate outdated provisions and bringing national requirements into line with “evolving EU frameworks”.
These updates include a review of insurance regulations aimed at eliminating duplication, simplifying the lending framework for credit unions, and reviewing some domestic banking rules.
The regulator is also planning further improvements in its gatekeeping processes – including shorter processing times and clearer expectations.
The Central Bank is also carrying out what it describes as “a comprehensive review” of domestic reporting requirements, aimed at ensuring that all data collections are “purposeful, proportionate, and non-duplicative”.
‘Clearer’ system
Mary-Elizabeth McMunn (deputy governor, financial regulation) said that the regulator had listened to feedback from stakeholders.
“Our focus is on being risk-based, future-focused, and outcomes-driven, ensuring firms understand what is expected, and that our frameworks support sustainable innovation and growth.
“Success will be a regulatory system that is clearer, more coherent and more proportionate, while continuing to protect consumers, investors, and hard-won financial stability,” she concluded.