Regulatory pressures are mounting in Ireland’s financial services sector, with nearly two-thirds (64%) of professionals warning that the country risks losing its competitiveness to more nimble markets with lighter regulation.
A recent survey from the Compliance Institute of over 150 senior compliance professionals across Irish financial services firms highlights growing concern that complex and divergent international rules could make it harder for Ireland to maintain its reputation as a leading and innovative hub.
Looking ahead to 2026, respondents pointed to the dual challenge of EU and US regulatory developments, with 44% anticipating overlapping requirements that may drive higher costs and duplication. EU-led initiatives in sustainability, consumer protection, and prudential oversight were cited by 41% as a major source of pressure, while 11% flagged US regulations, including sanctions enforcement and digital asset rules, as key challenges.
Commenting on the findings, Michael Kavanagh, CEO of the Compliance Institute,
“These results show that while Ireland’s strong regulatory system remains one of its key strengths, there is a real concern that growing complexity and overlapping requirements could affect our competitiveness. We need to find the right balance between maintaining strong governance and allowing space for innovation”.
The results point to a clear message - Ireland’s future competitiveness will depend on ensuring that regulation remains proportionate, consistent and easy to apply in practice”.
Mr Kavanagh continued,
“The compliance community is calling for regulation that is smart, coordinated and practical. Simplifying frameworks where possible, without weakening them, supports both strong consumer protection and a competitive marketplace. Clear alignment between EU and international standards would also help reduce duplication and improve effectiveness.
Effective compliance should enable progress, not hold it back.”
Building resilience through adaptability
The Compliance Institute notes that financial services in Ireland have shown considerable resilience in recent years, but it is warning that maintaining this strength will require continued adaptability in the face of global change.
Mr. Kavanagh concluded,
“Ireland’s success as a financial centre depends on vigilance, resilience and agility. If we get the balance right, Ireland can remain a trusted and competitive hub for international financial services in the years ahead.
As the sector navigates challenges linked to technology, geopolitics and sustainability, compliance professionals will play a vital role in ensuring firms remain both responsible and responsive”.
Responses:
- Yes – 64%
- No – 36%
Where do you expect the greatest compliance pressure for Irish financial services firms to come from by 2026?
Responses:
- U.S. developments such as deregulation, sanctions enforcement, or digital asset policies – 11%
- EU regulatory initiatives such as sustainability, consumer protection, or prudential oversight – 41%
- Both equally, creating costly duplication and divergence – 44%
- Neither – we don’t foresee additional pressure – 4%
