Dáil Éireann debate -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Financial Services Regulation.

Dan Boyle

Question:

89 Mr. Boyle asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department has had a role in assisting the investigation by two US regulatory authorities into the valuation policies operated by a leading hedge fund (details supplied) quoted on the Irish Stock Exchange; and if her Department will be carrying out a review of the regulation of such hedge funds, particularly with regard to the pricing policy of asset and mortgage backed securities following the public comments of certain former managers of such funds. [29955/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

My Department has had no approach from the US authorities investigating the matter referred to be the Deputy. Investment funds, including hedge funds, are subject to authorisation and supervision by the Irish Financial Services Regulatory Authority, IFSRA, which is empowered under the relevant legislation to impose any conditions it considers necessary and prudent for the orderly and proper regulation of such funds. I understand that the fund referred to by the Deputy is not open to the general public and is only available to professional investors who should be able to assess the risks involved in any such investment. Investment fund legislation is kept under review on an ongoing basis. If there is a need to strengthen the legislation in this area, I have no doubt that IFSRA will bring this to my attention and to the attention of the Minister for Finance, as appropriate.