Almost seven in ten (67%) senior compliance professionals in Ireland believe that “gold-plating”, where national regulators apply additional requirements beyond EU rules, is making Ireland a less attractive location for financial services firms compared to other EU jurisdictions.
The findings come from a new survey by the Compliance Institute, Ireland’s professional body for compliance professionals, which gathered the views of more than 150 senior compliance experts working across the Irish financial services sector nationwide.
While the survey revealed concern across the board, it was the widely held opinion that the impact of gold-plating is uneven at best. The vast majority (92%) of respondents said these additional regulatory layers place a disproportionate burden on small and medium-sized enterprises (SMEs) compared to larger financial institutions.
Competitiveness and proportionality under pressure
Commenting on the results, Michael Kavanagh, CEO of the Compliance Institute,
“These findings highlight a growing unease within Ireland’s financial services community that our competitive edge could be dulled by excessive or overlapping rules. Strong regulation is vital, but it should also remain proportionate, consistent and easy to apply in practice. To stay competitive within the EU, Ireland must avoid adding requirements that go beyond what is necessary.
Gold-plating is often introduced with the best of intentions, but in practice it can lead to unnecessary complexity, particularly for smaller firms that lack the resources of larger institutions. A clearer and more streamlined approach would help maintain confidence in the system while allowing businesses to operate efficiently and continue to innovate.”
Striking the right balance between rigour and realism
The Compliance Institute findings come as policymakers across Europe explore ways to simplify regulatory frameworks without weakening essential safeguards. In a recent address to the Compliance Institute’s Annual Conference, the Central Bank noted that simplification should focus on effectiveness and clarity rather than relaxation of standards.
Mr Kavanagh said compliance professionals strongly support that direction,
“Sound regulation is the foundation of trust in the financial system. But there is increasing awareness that alignment and clarity across jurisdictions are crucial to avoid duplication, minimise fragmentation and ensure that smaller firms are not unfairly disadvantaged. Regulation should be rigorous but also workable. It should help firms do the right thing rather than bury them in complexity.”
Supporting sustainable growth through effective regulation
Mr. Kavanagh concluded,
“Ireland’s financial services sector has performed strongly in recent years, demonstrating both stability and the ability to adapt to evolving challenges. Looking ahead, sustaining this performance will rely on regulation that is proportionate, practical, and responsive to global developments”.
