Matthew Elderfield, deputy governor of the Central Bank has said change is coming to the Irish funds industry and that it will be significant.
Speaking in Dublin, Mr. Elderfield said that the funds industry is an important sector for Ireland, employing 12,000 people and managing assets of €1.2 trillion.
The deputy governor said that there are 1.3m investors in Irish regulated funds or funds supported by Irish fund administrators.
It illustrates, he says, the necessity of maintaining high standards of regulation.
Maintaining those high standards and Ireland's reputation is vital, Mr Elderfield said, to the success of the international financial services sector, including the funds industry.
In his remarks, Matthew Elderfield said, "whatever the detail of the reforms for money market funds, change is coming and it will be significant." He said his key message to fund managers was to "engage in the debate and be prepared to adapt."
The right regulatory framework was vital, he said, "so that investor protection is assured."
He said that there is an opportunity to "re-examine the different elements of that regulatory framework for investor protection, the standards in place at a European level and domestic level, the processes the Central Bank uses to authorise new funds, the supervisory framework applied to the sector and the emerging standards relating to shadow banking."
The Deputy Governor paid tribute to outgoing CEO of the Irish Funds Industry Association Gary Palmer and welcomed his successor Pat Lardner.
