Enda Kenny
Ceist:11 Mr. Kenny asked the Taoiseach if he will report on the recent work of the task force on asset management; and if he will make a statement on the matter. [25199/04]
Amharc ar fhreagraTuesday, 30 November 2004
Ceisteanna (11)
Freagraí ó Béal (3 píosaí cainte)
Since the publication of its report in May 2002, the asset management task force has continued its work, following up on the recommendations in that report. The recommendations cover education, regulation and marketing. In particular, the task force has been working to increase the number of chartered financial analysts working in Ireland as a means of attracting further assets for management here. The task force continues to engage actively and regularly with all relevant Departments and State agencies to advance the recommendations in the report.
Is this the only report that will be published by the asset management task force or can we expect a further report to be published? Have the recommendations made by the task force in respect of education, regulation and marketing been implemented? Are there outstanding recommendations to be implemented? What action will be taken to ensure the International Financial Services Centre maintains its share of the financial services market in the EU and has the potential to secure new business in future years? Will the task force continue to be involved in that?
I will try to provide as much information as possible. The Society of Investment Analysts engages in dialogue with the educational institutes to assist them in ensuring that their programmes take account of up to date practice in asset management. The society is always trying to broaden its planned marketing campaign of asset management among third level students. As stated previously, this is an area in which there is good employment. There are continuing consultations and exchanges of views between the industry and the various sectors.
The task force has continued to meet to consider the recommendations contained in the report and has not yet been dissolved. Its membership comprises representatives from the Departments, the agencies and the industry.
Deputy Kenny's second question related to education. The task force has facilitated a potential increase in the number of students. There are now 91 qualified and certified financial analysts operating in the Irish market. This is a large increase from the position that obtained when this matter was raised last year in the House. Following the report, marketing has been identified as the key objective. Representatives from IDA Ireland are also members of the task force and they identify new opportunities in the context of increasing the number of asset management companies doing business here. The latter has been on the increase. IDA Ireland has been successful in attracting a number of prestigious asset management companies to this country in recent times and is continuing its efforts in this regard.
As regards regulation, IFSRA is also now involved in this area. Taxation was also identified in the report and matters relating to it have now been resolved. The group continues to monitor tax developments in this area. The answer to the Deputy's question is that the areas have been dealt with.
As per the last academic year, 289 students sat the examinations in pursuit of this professional designation. The latest registration statistics point to a similar number doing so next summer. It should be remembered that developments in this area began because there were not enough suitably qualified people in this country to work in it and we were obliged to bring in people and services from outside. Now, however, the numbers of qualified Irish people have risen.
Deputy Kenny also inquired about the area of business. The most recent estimate indicates that approximately €262 billion worth of assets are under management at the IFSC at present. This enormous figure includes assets managed by members of the Irish Association of Investment Managers of €200 billion, with the other €62 billion managed by other participants and the Central Bank. The figure is increasing all the time. Assets under management on behalf of Irish residents currently stand in excess of €80 billion. There is an increasing trend for the assets of Irish residents to be managed. The asset management industry here is faced with the threat of seepage of assets and that is why it is important to obtain the staff to manage such assets because they will otherwise be managed outside the country. There is some seepage, even though the business is growing.
The Deputy's final question related to the steps taken to improve activity. Though activity is high, we must continue to do everything to encourage this. IFSRA, which was formally launched last year, is tasked with maintaining the best of the existing system, while also trying to move to a one-stop-shop system for financial services. It will hopefully have a more effective focus on matters relating to consumers' interests. It has instituted a number of initiatives, including the clearing house for the IFSC groups. These groups continue to work to my Department.
This is a growing area in every way, particularly in terms of providing good employment for the increasing number of people entering it. Deputy Kenny will be aware of the benefits of asset management here. Pension funds, for example, are extremely lucrative and there is a significant Bill before the House which is designed to attract more business in this area. People involved in asset management also tend to be involved in other activities and in extending their work.
The Deputy is aware of my official position, namely, that I hope the UK will join the euro.
However, in the event that it does not join, Ireland will get quite an amount work because of the increase in euro-dominated work here. That continues to grow. There is a substantial amount of work in this area.