COVID-19 – Regulated Firms FAQ

COVID-19 FAQ Regulated Firms

Last updated: 24 September 2021

The Central Bank continues its ongoing engagement with firms and their representative bodies. We continue to work in the public interest to deliver on our mandate of protecting consumers and financial stability.

General

Business Interruption Insurance

Payment Breaks

Reporting Requirements

Dividends and Remuneration

In light of the improved macro-economic outlook and the reduced uncertainty about the impact of Covid-19 on the European financial sector, the ESRB has decided to allow its Recommendation of 15 December 2020 on dividend distributions during the COVID-19 pandemic (ESRB/2020/15) to expire after 30 September 2021. In this context, the Central Bank has also decided to modify its expectation of (re)insurance firms with respect to distributions and variable remuneration with effect from 1 October 2021.

The Central Bank continues to expect all (re)insurance firms and their Boards to exercise prudence in respect of dividend distributions, share buy-backs or other similar transactions, and variable remuneration, and to carefully assess the impact of such proposed distributions on the financial resilience of the firm and in particular, its solvency and liquidity positions on a forward looking basis.

(Re)insurance firms are expected to continue to notify their supervisors in advance of any proposed dividend distributions, share buy-backs or other similar transactions. In notifying the Central Bank, firms are expected to include information on the amount and timing of the proposed distribution. The Central Bank will adopt a risk-based approach in determining if further information is needed from the firm. Where no communication is received from the Central Bank within 30 days of the notification, the firm is free to proceed with the dividend distribution.

The additional expectations that applied in respect of more significant insurance firms, no longer apply.  Notification in respect of proposed variable remuneration payments is no longer expected.

The Central Bank will continue to keep this position under review and may update it further at a later date.

Securities

Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT)

See also: