Almost two-thirds (64%) of compliance professionals in Ireland believe the country is at risk of losing competitiveness in financial services to more agile, lower-regulation markets.
The findings come from a nationwide survey by the Compliance Institute of over 150 senior compliance professionals working across Irish financial services organisations. Respondents highlighted growing concern that increasing regulatory demands and international divergence could undermine Ireland’s ability to remain an attractive and innovative location for financial services.
Mounting compliance pressures
When asked where the greatest compliance pressures will come from by 2026, 44% of respondents said both EU and US regulatory developments will create simultaneous challenges, leading to duplication and higher costs. A further 41% said EU-led initiatives in areas such as sustainability, consumer protection and prudential oversight will be the main source of pressure, while 11% pointed to US policy developments, including sanctions enforcement and digital asset regulation.
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”.
