In July 2024, the Central Bank of Ireland (CBI) published its Feedback Statement to its Discussion Paper (DP11): An approach to macroprudential policy for investment funds.
DP11 was seeking feedback on a number of issues.
These included:
- The channels through which investment funds can generate systemic risk
- The current regulatory framework for investment funds
- The key proposed objectives and principles of macroprudential policy for investment funds
- The design and deployment of macroprudential tools for investment funds
- Key considerations for operationalising a macroprudential framework for investment funds.
AREF sent a short response to the Discussion Paper on 15 November 2023.
CBI's Feedback Statement summarised the responses received to DP11 and CBI's perspective on the key themes raised by respondents.
CBI will continue to actively contribute to ongoing work at the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) to strengthen resilience of non-bank financial institutions. The CBI will also be contributing to the European Commission’s consultation on a macroprudential framework for non-bank financial intermediation.
Domestically, CBI is focussing on evaluating the implementation of the two macroprudential measures already introduced, for Irish authorised property funds and Irish authorised GBP-denominated LDI funds. They will continue to actively monitor the sector for evolving financial vulnerabilities and to deepen their understanding of the nature and magnitude of systemic risk across different fund cohorts, through ongoing analysis and research.
AREF's Public Policy Committee will continue to monitor CBI's approach to macroprudential policies.
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