James Lawless
Question:89. Deputy James Lawless asked the Minister for Finance for an update on the progress being made on the funds review; and if he will make a statement on the matter. [43169/23]
View answerThursday, 5 October 2023
Questions (89)
Oral answers (4 contributions)
My question is on the funds review being produced imminently. In particular, in his answer the Minister might focus on the risks and opportunities posed by technological innovation and digital innovation, the markets in crypto, assets regulation and indeed the digital operational resilience Act, DORA. I raised the question of crypto five years ago in this House with the then Taoiseach in terms of its regulation and it was not in progress at the time. Five years on we are getting there but how does that fit into the funds review in which the Department is currently engaged?
I thank Deputy Lawless for raising this issue. On 6 April this year I published the terms of reference for a review of Ireland’s funds sector. The objective of the review is to ensure that Ireland’s funds sector framework is up to date and fit for purpose in the years ahead, that we can maintain our globally competitive position by supporting long-term growth and a sustainable and resilient market and that the sector continues to support national and regional economic growth, as well as job creation. In addition to the funds sector, the review will also examine three specific areas of taxation which were highlighted in the recommendations of the Commission on Taxation and Welfare. These issues are the taxation regime for funds; life assurance policies and other related investment products; the real estate investment trusts, REITs; the Irish real estate funds, IREFs regimes and their role in the property sector; and the use and scope of the section 110 regime as well. A team has been established within my Department to conduct a review of the funds sector. As Deputies will be aware, a public consultation was launched during the summer and closed on 15 September. I am very pleased with the volume of submissions received in response to the consultation. There were more than 190 responses. I thank all those who made the effort to contribute. The responses came from a wide array of stakeholders, highlighting the significant interest in the review from both industry and from individual retail investors. In tandem with the public consultation, the review team has been engaging extensively with the funds sector and other relevant public sector and private sector stakeholders. The team is currently analysing the responses to the consultation and this work will inform further targeted engagement with stakeholders over the coming months. The review team will report to me in summer 2024 and I look forward to considering its findings at that point. It would not be appropriate to speculate on the outcome of the review in advance of its completion. However, I can come back to the Deputy further in a moment, when he responds.
The time is short and the next session is about to begin. However, I stress to the Minister that I mentioned in particular the digital assets, in regard to the opportunities and the risks that flow from those. There are huge opportunities. The digital markets have become the markets. That includes crypto but not only crypto. The Minister will give a written response and he might focus in on those areas that provide great opportunity. However, they need to be subsumed into the wider framework as well.
I thank the Deputy. As I have indicated, the review is now well under way. The consultation period has closed. Submissions were received and are being examined. I have no doubt that the question of digitalisation and questions around crypto feature as part of those submissions. Once the budget is over I intend to sit down at an early date with the review team to engage to get a sense of the direction of travel and an early assessment from the team on the range of issues that have been raised in the consultation period, to be reassured about the timeline in respect of the outcome of the review because I will be anxious to consider as soon as possible once the review has been completed next year any policy issues that arise including taxation issues. I will pay particular attention to the digitalisation questions and the role of crypto that the Deputy raised. This is an area to which the Central Bank of Ireland is giving ongoing attention. I will be happy to engage further with the Deputy in that regard.
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