The Chairman of Financial Services Ireland (FSI) has said the establishment of an Irish regulatory sandbox could represent a "level shift" for innovative financial services firms.
Joe Heneghan, who is also CEO of Revolut Europe, said such a development could substantially increase the attractiveness of the country to businesses in the sector.
"At FSI we are ambitious for Ireland and that ambition extends to making this country a global centre for the next generation of financial services firms," Mr Heneghan said to attendees at the orgasniation's annual lunch.
"I believe that an Irish regulatory sandbox could represent a 'level shift' in terms of making Ireland an attractive place for innovative firms to establish themselves or indeed for our existing firms in the country to extend their current business into new areas."
The Central Bank, which is conducting a review of its innovation offering, is currently considering the establishment of such a sandbox.
Already in operation in other countries, it would enable to firms to trial new products within a framework approved by the regulator.
The idea behind the approach is to manage and reduce risks around new innovations.
FSI is currently researching innovative practices implemented by other leading countries within their sandboxes to try to identify and understand the most effective strategies.
Mr Heneghan also welcomed the recent signing into the law of the new individual accountability framework, which aims to hold senior executives in financial services firms to account for their actions.
He said that through its engagement with the Central Bank on the matter, FSI wants to ensure that the framework will further enhance Ireland’s reputation as a great place for financial services firms to do business.
Mr Heneghan also said that FSI will work with industry stakeholders and the Department of Finance to promote Ireland’s bid to host the new European Anti-Money Laundering Authority.
Also addressing the same event, Minister of State for Financial Services, Credit Unions & Insurance, Jennifer Carroll MacNeill, said the bid represents a huge opportunity for Ireland.
She said hosting the agency would be important for Ireland's position in Europe.
But she added that it would also provide an opportunity to describe how strong Ireland financial services industry is by pitching for the entity in a credible way.
Referring to the projected huge surpluses in the public finances over the coming years, Ms Carroll MacNeill also said Ireland needs to use the opportunity that the current "economic moment" gives us to think carefully about where we go and what we do with the money.
She said the department is currently considering a "pathway" for that and it will be ambitious when it comes to that.
