The Financial Regulator has confirmed that it has stepped up its dialogue with investment funds following the disclosure that a German-owned fund had to receive a multi-billion euro bail-out from German banks.
The fund, called Ormond Quay, is based in Dublin and is operated by German bank SachsenLB which employs 50 people in the IFSC in Dublin.
The regulator said that, in common with other jurisdictions such as the UK and US, funds such as Ormond Quay were not regulated by it, though they were required to make this clear in their documentation.
The regulator pointed out that such funds were purchased by sophisticated investors in the wholesale market.
In an information note, the watchdog said a central focus of its talks with funds has been on market liquidity and related issues. 'We are also monitoring investments and performance in the Irish authorised funds sector given the diversity of investments certain funds are permitted to invest,' it said.
