The terms of reference for the Review were published in April 2023 and a multi-disciplinary team was then established and tasked with completing the Review by the Summer of 2024.
In order to ensure that Ireland maintains its leading position in asset management and funds servicing, the Review team was tasked with an examination Ireland’s funds sector framework to ensure it is up-to-date, taking account of the significant developments in recent years to support the long term growth in the sector here. The Review also fulfils the recommendation from the Commission on Taxation and Welfare which called for:
- an examination of the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible;
- an examination of the regimes for Real Estate Investment Trusts (REITs) the Irish Real Estate Funds (IREFs) and their role in the property sector, including how they support housing policy objectives; and
- an examination of the use and scope of the Section 110 regime.
Alongside the Review, a history of the funds sector in Ireland has been completed by the Institute of Banking (IOB), and has been published along with the Review.
The Review Team has concluded that Ireland is well placed to grow in the funds and asset management sector, but that the emerging backdrop means that what has worked for Ireland in the past will not necessarily work into the future. The Review Team has developed a set of recommendations to address the most material issues and, critically, to put in place measures that will help us to navigate the further changes that are coming in a controlled way.
Commenting on today’s publication Minister Chambers said:
“The story of the funds industry over the last five years has been one of growth, with 22% growth in direct employment over the last five years, it’s important to recognise where we have been successful. However, it is even more important to understand where we need to move to, to be successful in the future, that was a key task for this Review.”
“The regionalisation of the sector is a key feature of the funds industry here. There are people living in Donegal, Cork, Limerick, Kilkenny and Kerry working in the sector because of firms who have established their Irish operations there.
People no longer have to move to Dublin or abroad to pursue a career in the funds sector. And for those who have worked in funds abroad, gaining experience and expertise, Ireland now offers them attractive careers to return to.”
“The fact that the review was commissioned and undertaken is a sign of the importance we see in the funds and asset management sector.
The review has had a positive impact, leading to a period of deeper thought, not just on today’s priorities, but the future outlook and how the sector interacts with Government, with regulators and with its customers. I would like to thank everyone who responded to the consultation, including many individual taxpayers, and those who engaged in further discussions with the Review Team subsequently.
I would also like to that the Institute of Banking for producing a thorough and engaging history of the sector which I am pleased to publish alongside the Review today.”
