Madam, – “How the IFSC ‘HQ’ became a shadow of its intended self” (Opinion, September 6th) includes and mixes a number of issues which, as presented, serve to misinform.
The piece correctly notes, “The IFSC is a major centre for administering hedge and other funds in Europe”. However, rather than acknowledging the significance of these activities the point is made with reference to “light touch regulation”. This is both unfortunate and wrong. The funds referred to are not managed or authorised or approved in Ireland and have no regulatory association with Ireland. They simply and significantly benefit from the quality service provided by the Irish industry companies.
In addition, all Irish funds are authorised and supervised under the Financial Regulator’s regulatory framework where both the investment fund itself and all service providers to the fund require regulatory authorisation and ongoing supervision, a level of regulation unique to investment funds. Should “light touch regulation” be sought, Ireland has nothing to offer. However, should quality of service be relevant then Ireland has a lot to offer.
Over the past 20 years Ireland has developed as a very significant international servicing centre and domicile for the funds industry. Industry companies are now located in 12 counties around the country employing 11,500 people. Some 359 international fund promoters, including the leading global financial services companies, have funds domiciled in Ireland, authorised and supervised by the Financial Regulator and distributed in over 60 countries.
Can I suggest that it is extremely disappointing that an industry sector in which Ireland is a world leader, demonstrates thought leadership and best practice, has created significant employment (and has the potential to create more) could be portrayed in such an ill-informed way?
In a sector that is under continuous competitive pressure from all European countries, which are looking to develop this business activity themselves, why are we in Ireland contributing to our own challenges? – Yours, etc,