FIG Top 5 At 5 - 21/03/2024

• Published date: 04 April 2024
• Subject Matter: Finance and Banking, Insurance, Financial Services, Insurance Laws and Products
• Law Firm: Matheson
• Author: &nbsp Matheson

1. Central Bank of Ireland's pre-legislative scrutiny submission on the Access to Cash Bill 2024

On 8 March 2024, the Deputy Governor of the Central Bank of Ireland ("Central Bank"), Vasileios Madouros, responded to a request for a submission from the Central Bank as part of pre-legislative scrutiny of the General Scheme of the Access to Cash Bill 2024 ("Bill").

In the response, the Deputy Governor highlighted how the Central Bank, overall, welcomed the Bill, and expressed the Central Bank's views on five specific elements of the proposed legislation:

• Stakeholder responsibilities - the Central Bank welcomed the obligations placed directly on stakeholders within the cash system, noting the collective responsibility on all cash cycle participants to ensure that reasonable access for consumers in Ireland is maintained. The Central Bank also noted that while the access to cash criteria may temporarily not be met in certain areas, and operational disturbances may occur, it expects all parties within the sector to have the right processes in place to respond to such instances;
• Registration and oversight of Independent ATM Deployers - the Central Bank supports the requirement for independent ATM Deployers ("IADs") to be registered and subject to oversight by the Central Bank, noting the need for new requirements to be proportionate and risk-based. The main role of the Central Bank in overseeing IADs will be "to produce regulations to set minimum standards and oversee compliance with these standards". Registration of IADs will be less onerous than other regulated sectors, which the Central Bank noted is more appropriate for the sector. The oversight of IADs is not a full supervisory regime and will seek to ensure IAD compliance with service standards and ensure sufficient notice is given regarding withdrawal of services;
• Registration and oversight of Cash in Transit ("CIT") companies - the Central Bank welcomed the implementation of a registration and oversight regime for this sector, similar to the one set out for IADs, and which will involve the collection of data to monitor early warning signs of stress in such entities. The Public Service Authority will regulate all other aspects of their activity. CIT companies will be required to notify the Central Bank in advance of material changes to their business, and to have business continuity plans and exit strategies in place. The Central Bank will also be able to petition the High Court to appoint an examiner to a CIT company;
• Ensuring Reasonable Access to Cash ("RAC") - the Central Bank welcomed the distance metric of 10km and the per capita metric of a minimum number of ATMs per 100,000 people. The Central Bank will be responsible for advising the Minister on the operation of the RAC criteria following its initial calibration, and will monitor the criteria quarterly. It will also inform Designated Entities of the details of any breaches and request details on how they intend to resolve such breaches; and
• Balancing societal costs and benefits of a given level of cash infrastructure - the Central Bank welcomed the provisions set out in the Heads of Bill for Ministerial powers to vary the criteria for access to cash to ensure the "key...