Dáil Éireann Debate, Tuesday - 24 July 2018
164. Deputy Michael McGrath asked the Minister for Finance when the IFS public sector co-ordination group was established in relation to action 3 of IFS2020; the number of times the group has met each year since 2015; the persons that sit on this group; the frequency with which the briefings have been updated since its establishment; the changes that have been made in view of Brexit; and if he will make a statement on the matter. [33936/18]
Amharc ar fhreagra165. Deputy Michael McGrath asked the Minister for Finance the status of action 5 of IFS2020; the number of high-profile IFS platform events that were attended each year by high-level officials; the number of overseas trade missions established each year since 2015; the number of those that required ministerial participation; and if he will make a statement on the matter. [33938/18]
Amharc ar fhreagra166. Deputy Michael McGrath asked the Minister for Finance when the banner brand and associated marketing material was first launched in relation to action 8 of IFS2020; if there has been a relaunch due to Brexit; and if he will make a statement on the matter. [33941/18]
Amharc ar fhreagra167. Deputy Michael McGrath asked the Minister for Finance the status of action 18 of IFS2020; when a review of the authorisation service standards took place; the specific changes implemented as a result; if a review took place after the Brexit result; the changes that came from that review; and if he will make a statement on the matter. [33951/18]
Amharc ar fhreagra168. Deputy Michael McGrath asked the Minister for Finance the status of action 19 of IFS2020; the specific changes made to DTAs as a result of this action point; and if he will make a statement on the matter. [33952/18]
Amharc ar fhreagra169. Deputy Michael McGrath asked the Minister for Finance the status of action 20 of IFS2020; the specific changes made under this action point; and if he will make a statement on the matter. [33953/18]
Amharc ar fhreagra170. Deputy Michael McGrath asked the Minister for Finance the status of action 29 of IFS2020; when the working group was first established; the persons that sit on the working group; the number of times the working group has met each year since 2015; the specific undertakings implemented by the working group on securitisation and the capital markets forum; and if he will make a statement on the matter. [33962/18]
Amharc ar fhreagra171. Deputy Michael McGrath asked the Minister for Finance when the last IFS progress report was published; when the next IFS progress report is due; and if he will make a statement on the matter. [33963/18]
Amharc ar fhreagraI propose to take Questions Nos. 164 to 171, inclusive, together.
In March of 2015, the Government launched the ‘International Financial Services 2020 Strategy’ (IFS2020), which is currently led by Minister of State Michael D’Arcy TD. One of the main deliverables is to create 10,000 net new jobs across the Enterprise Ireland and IDA Ireland portfolios in international financial services over five years from 2015 – 2020. To end-2017, the IFS2020 Strategy has created approximately 7,000 net new jobs in the sector placing us on target to create 10,000 by 2020. The IFS sector now employs almost 42,000 people across Ireland with 30% of those employed in the sector located outside Dublin.
I understand that the Deputy is referring to actions outlined in the initial Strategy document launched in 2015. The structure of the IFS2020 Strategy provides for quarterly reporting which tracks the progress of measures within the IFS2020 Strategy. These reports are regularly updated and are available on my Department’s website at the following address: https://www.finance.gov.ie/what-we-do/international-financial-services/.
The most recent progress report for Q1 2018 was published on 17 May 2018 and is available at the following link: http://www.finance.gov.ie/wp-content/uploads/2018/05/IFS2020-Q1-2018-Progress-Report.pdf The progress report for Q2 2018 will be published shortly.
IFS2020 is reviewed and updated annually through the development of annual Action Plans. Three Action Plans (2016, 2017 and 2018) have been published since the initial strategy document that the Deputy is referencing, and in total 159 actions have been identified.
Brexit has already, and will continue to change the landscape for international financial services operations already located, and choosing to locate, in Ireland. While there are many challenges arising from the UK’s decision to leave the EU, it is evident that there are opportunities for Ireland in relation to international financial services. The IFS2020 Strategy combines long-term strategic thinking with the flexible tools to react to any domestic and international developments occurring over the period. The annual Action Plans enable us to tailor responses to deal with these challenges and opportunities as they arise. As part of the development of the IFS2020 Action Plans for 2017 and 2018 a number of measures were shaped and influenced by Brexit, with significant work undertaken on Brexit across the departments and agencies who contribute to the continued development of the IFS2020 Action Plans.
PSCG
In reference to Action 3 of IFS2020 Strategy 2015, the IFS2020 Public Service Coordination Group was established in 2015 and includes representatives of the Department of the Taoiseach, Department of Finance, Department of Foreign Affairs and Trade, Department of Business, Enterprise and Innovation, and the Department of Education and Skills, the IDA and EI. The group met 21 times in 2015, 24 times in 2016, 17 times in 2017 and 8 times to date in 2018. Brexit is a standing item on the agenda of these meetings.
Overseas Trade Missions
In reference to Action 5 of IFS2020; since 2015 Ministers of State from my Department have undertaken a number of visits including to London, Brussels, Luxembourg, Frankfurt, France, Zurich, Singapore, Beijing, Shanghai, Hong Kong, Tokyo, Boston, Washington DC, New York, San Francisco, Los Angeles, Atlanta, Charlotte, Savannah, Toronto and Montreal.
In addition the Enterprise Agencies, the Department of Foreign Affairs and Trade, and the Department of Business, Enterprise and Innovation have led a number of multi-sectoral trade missions and a number of these would have had a financial services element.
Banner Brand
In reference to Action 8 of IFS2020 Strategy 2015, the IFS Ireland banner brand was launched at the European Financial Forum 2016, and was subsequently launched in 2016 at a number of regional events by the then Minister of State Eoghan Murphy TD across Europe, Asia and North America. The brand continues to roll-out across the embassy and agency network overseas and is used frequently at IFS2020 related events.
Authorisation Standards
In reference to Action 18 of IFS2020 Strategy 2015, the review of the authorisation standards took place in 2015 and concluded in 2016.
On a twice yearly basis the Central Bank publishes a report, the Regulatory Service Standards Performance Report, on its performance against service standards which have been committed to in respect of authorisation activity. Following engagement under IFS2020, a number of improvements have been made to the reporting, including:
- The number (and not only percentage) of submissions or applications that met the standard,
- Processes not previously captured by reporting (e.g. the Prospectus Directive function),
- Links to the guidance on the Central Bank’s website on how to submit an application for authorisation for the various entity types, and
- Information on applications that have (a) been withdrawn by the applicant or (b) become dormant through lack of engagement from the applicant.
The report for H1 2016 was published by the Central Bank in Q3 2016 and is available on the Central Bank website. This document sets out the Central Bank’s performance against service standards that it has committed to for the authorisation of financial service providers and Pre-Approval Control Functions under the fitness and probity regime.
The reports, available on the Central Bank website summarise authorisation activity for all sectors on half-yearly basis: https://www.centralbank.ie/regulation/how-we-regulate/authorisation/service-standards. These reports set out the Bank's performance against Service Standards that it has committed to in respect of the authorisation of funds and financial service providers and the processing of fitness and probity applications. The Service Standards were met or exceeded for 100% of the targets for which applications were received in H2 2017.
I am informed by the Central Bank that it has seen a sizeable increase in the number of authorisation requests as a result of Brexit and has taken the necessary steps to ensure that it is in a position to process these.
The Central Bank has engaged with all firms who have approached it in a transparent, clear and robust manner. The Central Bank expects all firms in Ireland to be able to demonstrate that their firm is run from Ireland and has real substance in this jurisdiction. It is important with just nine months to go to Brexit that any firm who wishes to be authorised by then engages with the Central Bank now, to give the necessary time to process the application.
As a general rule the Central Bank does not comment on applications for authorisation however it does publish Registers of firms regulated by the Central Bank of Ireland on its website that are updated on a monthly basis: http://registers.centralbank.ie/DownloadsPage.aspx
Double Taxation Agreements
In reference to Action 19 of IFS2020 Strategy 2015, the expansion and updating of Ireland’s double taxation treaty network helps prevent double taxation and double non-taxation, thereby enhancing competitiveness and facilitating cross border trade and investment. Ireland has signed DTAs with 74 countries with 73 of these in effect. The programme is kept under review on an ongoing basis and decisions to pursue any new agreements are dependent on a wide range of factors and are contingent on reciprocal interest from the prospective jurisdiction.
Financial Market Infrastructure
In reference to Action 20 of IFS2020 Strategy 2015, in July of 2017 I encouraged applications to establish a Central Securities Depository in Ireland. The Department is continuing its work with stakeholders to assess Ireland’s current arrangements around market infrastructure, specifically in the event of the UK exiting the EU. This assessment takes into account European Legislation and has included consultation with industry and government agency stakeholders.
Securitisation Working Group
In reference to Action 29 of IFS2020 Strategy 2015, the Ad-Hoc Working Group was never formally established as the Department of Finance instead engaged with the relevant industry groups on an individual basis. This was due to the fact the Commission adopted a number of specific legislative proposals related to CMU in 2015 such as the Securitisation Regulation and the Prospectus Regulation, where the views of industry were provided to the Department as the negotiations were underway in Council and Parliament.
