RegSol Blog

Central Bank of Ireland Discussion Paper on Macroprudential Policy for Investment Funds

July 2023

On 18th July 2023, the Central Bank of Ireland (“CBI”) published a Discussion Paper seeking views on a new macroprudential policy framework for investment funds (“DP11”). It aims to advance ongoing European discussions on how a macroprudential perspective in the regulation of the funds sector could be achieved. It discusses important factors to take into account when creating and implementing such a framework.

A macroprudential framework for the funds sector would adopt a systemic viewpoint and seek to make sure that this expanding area of the financial industry is more stress-resistant and less likely to magnify negative shocks. As a result, the sector would be better prepared to contribute as a dependable source of funding, supporting larger-scale economic activities.

The Central Bank is seeking feedback from stakeholders on a number of issues raised in the discussion paper to inform further analysis and policy work in this area via an online survey which will run until 15 November 2023.

The full Discussion Paper can be found here.