The Irish Department of Finance has published a Progress Update on their ongoing review of the funds sector in Ireland. The review, under interlinked themes of open markets, resilient markets and developing markets, is seeking to ensure that the Irish funds sector is resilient, future-proofed, supportive of macro-prudential stability, and continues to meet international best-practice standards.

The progress update highlights the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030. The main trends identified include: (i) the continued growth in the ETF market; (ii) the increased demand for access to private asset classes; (iii) the pressure on costs and fees; (iv) consolidation within the asset management sector and the preference for funds being established in one rather than multiple jurisdictions; (v) ESG, and (vi) increasing deployment of technological and digital solutions. Other areas identified as worthy of consideration are: (i) taxation of investment products; (ii) the role of REITS and IREF regimes in the Irish property market; and (iii) the Section 110 regime. The review will continue into 2024 with a view to a report to the Minister for Finance by summer 2024.

In the meantime, the Department of Finance review team will seek additional data and deeper insights on the issues raised. In particular, they plan to continue to undertake extensive engagement with relevant stakeholders to understand and assess the viability of the stakeholders’ proposals and to discuss specific matters raised in submissions. The K&L Gates Dublin office is actively contributing through direct discussions with the Department of Finance. We will continue to offer our support and input to the review team in their effort to strengthen and develop the Irish funds sector.