Press Release: ​Irish Funds Welcomes Commission’s Targeted Approach to AIFMD Review

Thursday, 25 November 2021

Press Release: ​Irish Funds Welcomes Commission’s Targeted Approach to AIFMD Review

Irish Funds Welcomes Commission’s Targeted Approach to AIFMD Review and Launches Report Titled ‘Empowering Citizens and Enabling the Economy’

  • EU-based investors have €1 trillion of investments in Irish domiciled funds.

  • Irish domiciled funds have €1 trillion invested into assets across the EU.

  • Figures from the Central Bank of Ireland show that today there is €3.5 trillion invested in Irish domiciled funds – an all-time high.

25 November 2021 – Irish Funds welcomes the targeted approach taken by the European Commission in today’s publication of the legislative proposal amending the Alternative Investment Fund Managers Directive (AIFMD) and the move towards greater supervisory convergence.

Reflecting on the Commission’s conclusion that “the AIFMD is generally meeting its objectives and that the EU-wide harmonisation of regulatory standards has facilitated integration of the European collective investment fund market”, Pat Lardner, Irish Funds CEO, commented:

We support the Commission’s targeted approach to the AIFMD review. We also welcome greater supervisory convergence as a key enabler of the further development of the EU’s single market for investment funds, ensuring consistent AIFMD application and the highest standards of investor protection.”

In February 2021 Irish Funds responded to the European Commission’s evidence based AIFMD consultation and recently published a position paper on delegation under AIFMD, outlining the benefits to investors.

Mr Lardner went on to add: Irish Funds also supports the stated ambition for a harmonised approach around Loan Origination Funds and the availability of Liquidity Management Tools applied consistently across the EU. We ask the co-legislators to maintain stability in relation to the AIFMD framework during the upcoming legislative debate to facilitate the objectives of the Capital Markets Union and an investment led recovery.”

Report LaunchMr Lardner was speaking at the launch of Irish Funds’ new Empowering Citizens and Enabling the Economy report which examines the role of the fund and asset management industry in Ireland in contributing to the financial well-being of EU citizens and to ensuring a sustainable investment led recovery in Europe.

Based on research into extensive data provided by the Central Bank of Ireland, the report identifies how the asset management industry empowers citizens to protect their financial future, fuels Europe’s economy and contributes to the EU’s sustainable finance future.

The report reveals that €1 trillion of assets in Irish domiciled funds are invested into the EU, with €439bn invested in EU debt instruments, €431bn invested in EU equity and €172bn invested in other EU assets, showcasing the role Ireland’s asset management industry plays in the wider European economy.

Key Facts

  • Biggest EU investors in Irish Domiciled Funds – After Ireland and Luxembourg, the Netherlands, Italy and Germany lead investment into Irish domiciled investment funds.

  • Ireland’s sustainable finance credentials - 1,023 ESG Funds registered in Ireland as defined under the EU’s Sustainable Finance Disclosure Regulation. Ireland was also one of the first EU Member States to issue Sovereign Green Bonds which now stand at €6.1 billion.

  • Ireland in Numbers - Ireland is a leading European domicile for Exchange Traded Funds (ETFs). Irish domiciled ETFs represent 65% of the total European ETF market. Ireland is also the second largest domicile of UCITS and AIFs holding 18 % of the market share in 2020.

Our Empowering Citizens and Enabling the Economy report provides timely data on how investment funds support EU citizens in protecting their financial future, while providing businesses with vital access to new funds to support long-term sustainable growth.” Added Mr Lardner.

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