Central Bank of Ireland Clarifies Bond Prospectus Responsibilities Amid International Scrutiny

The Governor of the Central Bank of Ireland recently addressed the Joint Oireachtas Committee to clarify the Bank’s legal obligations regarding the approval of bond prospectuses, particularly in light of heightened scrutiny over securities issued by the State of Israel.

In his opening remarks, the Governor expressed his personal distress at the ongoing conflict in Gaza but emphasized that the Central Bank’s mandate is strictly defined by European law. Under the European Prospectus Regulation, the Bank’s role is to determine whether submitted prospectuses meet specific requirements for completeness, consistency, and comprehensibility. The approval of a prospectus does not constitute endorsement of the issuer or its securities—rather, it confirms only that legally mandated disclosure standards are satisfied, enabling investors to make informed decisions. The Governor noted that third-country issuers, such as Israel, may choose any EU Member State’s authority for approval, and the Central Bank is obliged to carry out this responsibility as required by EU regulation.

The Governor stressed that the Central Bank cannot independently impose sanctions or refuse approval of a prospectus on the basis of international law decisions or political considerations. While the European Union can enact and enforce sanctions in response to international events—as it has done in other cases—no such EU sanctions currently target Israeli state securities. Accordingly, the Central Bank is not empowered to act unilaterally in this domain. The speech concluded with a commitment to continue discharging the Bank’s statutory duties with diligence and integrity, while also expressing hope for a peaceful resolution to the ongoing conflict.

This statement underscores the importance of a clear distinction between regulated financial processes and broader political or humanitarian concerns, highlighting the Central Bank’s commitment to operating strictly within its legal framework.