Does your jurisdiction regulate Fintech services under the traditional Financial Services laws or does it have any ad hoc regulatory frameworks for fintech services? (Financial Services Laws/Ad Hoc Framework/Hybrid)

The Central Bank of Ireland (CBI) is the sole financial services regulator in Ireland and responsible for authorising and supervising providers of regulated financial services (including fintech firms).  Consumer protection aspects applicable to authorised entities are generally covered by the CBI’s Consumer Protection Code.

Whether authorisation is required depends on the nature of the activities. The majority of regulated activities derive from EU directives; passporting can be applicable.

Make a list of fintech services that may obtain a licence in your jurisdiction? 

Services that the CBI may authorise include:

• Crowdfunding Service Providers 
• Electronic Money Institutions 
• Payment Service Providers 
• Virtual Asset Service Providers 
• Insurance & Reinsurance Providers, Investment firms & Funds Service Providers (MiFID)

What is(are) the name(s) of the regulatory authority(ies) responsible to grant licences and regulate fintech service providers? If there is more than one, please list which fintech services are regulated by which authority.

The Central Bank of Ireland.

Are there any specific restrictions on the types of fintech services that can be offered in and/or from your jurisdiction?

The requirement for CBI registration and authorisation to carry on regulated fintech services as referenced above is the main restriction on fintech businesses offering services in Ireland.  Passporting of home state authorisation may apply to EU/EEA entities.

Currently, there are no specific restrictions on the types of fintech services that can be offered in Ireland.

Is reverse solicitation allowed in your jurisdiction, for fintech firms licensed in other reputable jurisidictions? (Meaning that a third-country fintech firm can offer services to clients in your jurisdiction providing its at the exclusive initiative of the client).

The availability of reverse solicitation whereby non-EU/EEA country fintech firms can provide services that would otherwise be regulated in Ireland provided that it is at the exclusive initiative of the Irish client depends on the particular service being regulated.  

New reporting requirements called for by The European Securities and Markets Authority (ESMA) on reverse solicitation in the EU have not yet been adopted in Ireland.

Are there any specific requirements for companies providing fintech services in your jurisdiction?

As set out above in question 1, the main requirement for companies providing fintech services in Ireland is authorisation by the CBI.

Fintech companies must also comply with the usual requirements that all companies providing financial services must adhere to including data protection, consumer protection and AML/CFT requirements.

Are there any specific consumer protection measures that apply to fintech services in your jurisdiction?

Fintech firms which offer products and services to consumers in Ireland must comply with consumer protection law as consolidated by The Consumer Rights Act 2022. The Competition and Consumer Protection Commission is the national regulator responsible for enforcing competition and consumer protection law in Ireland.

The Consumer Protection Code 2012 (currently under revision) is also relevant. The code sets out principles and rules that regulated financial services firms must adhere to.

Are there any other legal issues that companies should be aware of when providing fintech services in your jurisdiction?

Companies should be aware of the wider EU legislation and not only the legislation transposed into Irish law. Companies should also ensure they are compliant with the numerous codes and requirements set out by the CBI in relation to the industry sectors within which fintech services can be provided.

Are virtual assets (such as cryptocurrencies and) permitted in your jurisdiction? (Yes/No)

Yes

If the answer is Yes, is there any licensing /authorisation/notification process that needs to be followed for a person to issue a new virtual asset? (Yes/No)

Yes

If the answer is Yes, please provide a summary of the process that needs to be followed by a person to issue a new virtual asset).

Virtual Asset Service Providers are subject to a registration obligation with the Central Bank for AML/CFT purposes.  This was introduced as part of the adoption of the EU Fifth by Anti-Money Laundering Directive.

It is expected this regime will be amended/supplemented by the Markets in Cryptoassets (MiCA) Regulation providing a further regulatory framework for VASP’s and also issuers of certain types of virtual assets when it comes into force.

Are Virtual Asset service providers regulated in your jurisdiction? (Yes/No)

Yes

If the answer to your previous question is Yes, please provide a summary of the framework that regulates such service providers explaining which licence(s) need to be obtained from which authority(ies).

VASPs are classified as “designated persons” for the purposes of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended) (the CJA) . Before granting authorisation to VASP’s, the Central Bank must be satisfied that each new applicant can meet their obligations under the CJA. It is expected that once the MiCA Regulation is in force VASP’s will have the ability to “passport” across EEA Member States.

Are you as a firm providing services and advice relating to Virtual Assets? (Yes/No)

Yes

Please feel free to add any pertinent comments in addition to your answers.

We provide services and advice relating to Virtual Assets where ancillary to other business lines rather than this being its own business line.