CBI regulatory and supervisory outlook and supervisory priorities

The report includes the CBI’s supervisory priorities for 2025 in the context of those risks and trends. Additionally, the CBI has published the list of key financial regulation initiatives communicated to the Minister for Finance in February 2025.

Key takeaways

The report outlines the CBI’s perspective on the key trends and risks that are shaping the financial sector, whilst addressing their supervisory and regulatory priorities for the next two years. Key risks are classified under three themes:

1. The macroeconomic and geopolitical environment.
2. How regulated entities are responding to today’s changing world.
3. Longer-term structural forces at play.

The six supervisory priorities, as detailed below, are set in the context of the macroeconomic environment and key risks outlook and provides the regulator’s overarching list of priorities for the year. The priorities are also informed by the priorities set out at the level of the European System of Financial Supervision and ECB (European Central Bank) Banking Supervision Single Supervisory Mechanism (SSM) priorities.

Supervisory priorities

Priority 1: Proactive risk management and consumer-centric leadership of firms
The CBI expect the leadership of regulated entities to adopt a more proactive and forward-looking approach to managing the risks and uncertainties facing their organisations and their customers. 

Priority 2: Firms are resilient to the challenging macro environment
Regulated entities are expected to have sufficient operational and financial resources, adaptability and recoverability in order to be resilient and well-prepared in the face of risks in the macro environment, economic and financial market uncertainty.  

Priority 3: Firms address operating framework deficiencies.  
The CBI will aim to ensure deficiencies identified in the governance, risk management and control frameworks of firms are addressed to ensure they are effective both in the current environment and into the future. 

Priority 4: Firms manage change effectively
Regulated entities are expected to keep pace with changes in the financial system and consumer needs and expectations through the well-managed evolution of their business strategies. 

Priority 5: Climate change and net zero transition are addressed
The CBI is prioritising the need for regulated entities to improve their response to climate change and enhance their role in the move to a net zero economy. 

Priority 6: The Central Bank enhances how it regulates and supervises
The CBI continues to improve and transform its approach to regulation and supervision. The CBI also introduced a new supervisory framework in January. This remains outcome-focused and risk-based but is now delivered through a more integrated approach. 

Financial regulation priorities for 2025

Additionally, the CBI has published their financial regulation priorities for 2025 in conjunction with this report. The priorities were included in a letter addressed to the Minister for Finance in February 2025.

The below priorities are focussed on specific regulations and legislation as opposed to the overarching supervisory priorities.

• Finalisation of the revised Consumer Protection Code.
• Embedding the recommendations of the Enria review of the fitness and probity regime.
• Implementation of the Markets in Crypto Assets Regulation (MiCAR)
• Delivering the first thematic Sandbox Programme.
• Ensuring firms have effective governance systems, by continuing to promote the Individual Accountability Framework, and the extension of the Senior Executive Accountability Regime to Independent non-executive directors.
• Progressing changes to the credit union lending regulations.
• Assisting in successful establishment of the EU's new AML agency (AMLA).
• Enhancing Operational Resilience

How can we help?

Our prudential risk experts recognise that regulations remain a pivotal driver for the strategic priorities of financial institutions. We specialise in assisting clients within the financial services sector in navigating the intricate web of regulations. We work in tandem with our clients to identify their regulatory responsibilities and develop strategies for full compliance.