IRELAND Law and Practice Contributed by: Niall Esler, Shane Martin, James O’Doherty and Laura Whitson, Walkers
to be interested in seeking authorisation in Ire - land as a CASP under MiCAR. Other areas for innovation include regtech, insurance, digital identity and asset manage - ment. Firms are also looking to incorporate new technology such as blockchain and AI into their operations. 2.2 Regulatory Regime Fintech firms must look to the existing regulatory regimes that may be applicable to their business model on a case-by-case basis. Payments In relation to the provision of payment services or the issuance of electronic money, the primary rules to be considered are: • the European Union (Payment Services) Regulations 2018 (PSR), which transpose PSD2 into Irish law; and • the European Communities (Electronic Mon - ey) Regulations 2011 (EMR), which transpose Directive 2009/110/EC (the “Electronic Money Directive” ) into Irish law. The domestic Irish regime governing money transmission businesses under the Central Bank Act, 1997 (CBA 1997) may be relevant to a mon - ey transmission service falling outside the PSR. Banking Challenger banks seeking to undertake “bank- ing business” or accept deposits from the public require a bank licence under the Central Bank Act, 1971 (CBA 1971) and will be subject to the Irish implementation of the EU Capital Require - ments Directive (Directive 2013/36/EU) (as amended) and the directly applicable EU Capital Requirements Regulation (Regulation 575/2013/ EU).
Credit institutions authorised in other European Economic Area (EEA) jurisdictions may passport their authorisation into Ireland, which requires notification to their regulator in the first instance. All companies that are not licensed banks (or passported credit institutions) must avoid includ - ing “bank” or similar in their name or advertising and certain other materials. Investment Services/Asset Management Depending on the services provided, a fintech firm providing investment services or asset management solutions may be subject to regu - lation. For example, if the activities constitute “investment services” in respect of “financial instruments” for the purposes of the European Union (Markets in Financial Instruments) Regula - tions 2017 (the “MiFID Regulations” ), an invest - ment firm authorisation will be required, unless an exemption applies. The MiFID Regulations implement Directive 2014/65/EU (MiFID II) into Irish law. Investment services include: • the provision of investment advice; • the receipt and transmission of orders; • the execution of orders on behalf of clients; and • the provision of portfolio management ser - vices. Firms appointed to manage a collective invest - ment undertaking (such as a UCITS fund or an alternative investment fund) will require authori - sation under the European Communities (Under - takings for Collective Investment in Transferable Securities) Regulations 2011 or the European Union (Alternative Investment Fund Managers) Regulations 2013, as appropriate, unless an exemption applies.
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