CRD VI transposing measures signed into law

The statutory instrument to transpose Directive (EU) 2024/1619 (CRD VI) into Irish law was signed by the Irish Minister for Finance on 10 July 2026. An extract focusing on Article 21c is in circulation, with the full text expected to be published later this week. The extract shows that Ireland has copied out the relevant Article 21c text, without gold-plating.

Implementation of the third country branch regime (Article 21c)

CRD VI introduces a harmonised third country branch regime, which, when implemented into EU Member State national law, will require certain non-EU banks and large investment firms to set up and establish a licensed (i.e. authorised) branch in each EU Member State where they carry out ‘core banking activities’ unless they can rely on an exemption or exclusion.  

ALG has seen an extract of the statutory instrument that contains the new third country branch regime implementation provisions and can confirm that a copy-out approach has been taken in Ireland with no gold-plating.

The copy-out approach means that the text of the specific exemptions and exclusions, including the ‘reverse solicitation’ exemption, intragroup and interbank funding exemptions, the ‘MiFID exemption’ and the ‘legacy contracts’ exemption, exactly follow the text of those exemptions/exclusions as set out in CRD VI. At the time of writing no guidance has been published. As expected, there is no indication that changes will be made to narrow Ireland’s broad inter-professional overseas person exemption available for third country firms which provide investment services cross border into Ireland.

Finally, as expected given the copy-out approach used, a ‘characteristic performance’ test (an analysis based on where the service is characteristically performed, rather than where the customer/delivery of the service is based) is not expressly mentioned in the statutory instrument. It remains to be seen whether arguments as to why the characteristic performance test could be available in certain situations gain currency in the market and are accepted by the Irish regulator.

Application of the third country branch regime

Irish transposition of CRD VI is late as the transposing measures were due to be published by 10 January 2026. The third country branch regime must be applied from 11 January 2027, and we assume that the statutory instrument reflects this application date.

Next steps

The statutory instrument will be published in Iris Oifigiúil (we expect in this Tuesday’s edition, 14 July) and will be subsequently available to view on Irish Statute Book.

In light of the copy-out approach taken, third-country banks and large investment firms, and EU market participants that rely on third-country banks and large investment firms for the provision of core banking services, will need to conduct transaction-specific analysis to determine whether existing and future financing and other arrangements can continue on their current basis. Otherwise, third country banks and investment firms should consider alternative booking, origination, custody arrangements or group structures (as applicable).

ALG can help clients assess the application of the new regime, identify available exemptions or exclusions, review existing and pipeline transactions or arrangements and design practical implementation steps ahead of the January 2027 application date.

For further information on the CRD VI third country branch regime and how we can assist your firm, please contact Eoin O’Connor, Partner, Peter Walker, Partner, Patrick Brandt, Partner, Eimear O’Brien, Partner, Louise Hogan, Partner, Marie O’Brien, Partner, Séamus Ó'Cróinín, Partner, Keith Mulhern, Partner, Maria McElhinney, Partner, Sarah Lee, Senior Practice Development Lawyer or your usual ALG contact.

Date published: 13 July 2026