The Minister for Finance, Michael McGrath, T.D., has published the terms of reference for the Department of Finance to conduct a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets.’
Ireland is as a global centre of excellence for asset management and funds servicing with the latest figures showing regulated and unregulated funds in Ireland having approx. €4.6 trillion in assets under management. Nationally, this funds sector employs some 17,000 people across 180 companies.
Under the broad and interlinked themes of Open Markets, Resilient Markets and Developing Markets, this framework will seek to ensure that Ireland maintains its leading position in asset management and funds servicing and that we continue to see support for our national and regional economies. The review will also seek to ensure that Ireland’s funds sector framework is resilient, future-proofed, supportive of financial stability and a continued example of international best-practice.
The multi-disciplinary Review Team will be led by the Department of Finance, with support from state bodies, including Revenue and the Central Bank of Ireland, and will conclude its work in summer 2024.
The team will look at a range of issues, which are set out in the published Terms of Reference, and these include examining the regimes for Section 110 entities, Real Estate Investment Trusts (REITs) and Irish Real Estate Funds (IREFs). The review team will also examine international contexts, effects on employment and the economy and the wider taxation regime for funds, life assurance policies and other related investment products.
Commenting on today’s publication Minister McGrath said:
“The establishment of a Review Team to develop a ‘Funds Sector 2030’ report is a proactive step and will cover a wide range of issues from competitiveness to taxation to financial stability.”
“Ireland is a global centre of excellence for the asset management and funds servicing and over many years this has been a driver of economic and employment growth. I am confident that a new framework will support long-term growth in this area and maintain a sustainable and resilient funds sector here.”
“This review also fulfils recommendations from the Commission on Taxation and Welfare and will ensure that our domestic funds framework is up-to-date and takes account of the significant developments in the funds sector in recent years.”
Commenting on today’s publication Minister of State Carroll McNeill said:
“Ireland’s funds sector is active across the country and has been a driver of regional economic growth and employment. In developing a new funds sector framework I want to ensure we continue to support regional economies and maintain Ireland’s leading role in this area.”
