## Ireland: Financial Sector Assessment Program-Technical Note on Oversight of Market-Based Finance: Investment Funds and Special Purpose Entities

_IMF Staff Country Reports, July 27, 2022_

## Source details

**Canonical URL:** [Ireland: Financial Sector Assessment Program-Technical Note on Oversight of Market-Based Finance: Investment Funds and Special Purpose Entities](https://www.imf.org/en/publications/cr/issues/2022/07/25/ireland-financial-sector-assessment-program-technical-note-on-oversight-of-market-based-521278)

## Other formats

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## Bibliographic details
- Published: July 27, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400216541.002

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### Summary findings
- Ireland has made good progress in implementing MBF-relevant recommendations from the 2014 and 2016 Financial Sector Assessment Programs, but some gaps remain.
- As the integrated regulator for the financial services sector, the Central Bank would benefit from:
  - greater formal legal independence;
  - stronger enforcement powers; and
  - more flexibility on individual compensation to attract and retain scarce talent.
- There is scope for the Central Bank to leverage its expertise and experience to promote further EU convergence on MBF oversight.
- Closing data gaps would further enhance the Central Bank’s robust regulation and supervision of the MBF sector.
- The Central Bank should intensify its work to assess and mitigate financial stability risks of MBF.
- Finalization of work already under way on investment fund pricing errors should be prioritized.
- Oversight of special purpose entities (SPEs) deserves regulatory and supervisory attention.
- The introduction of a comprehensive framework for pricing errors will lay the foundations for greater investor protection and more consistent industry practices.
- Oversight of special purpose entities has improved from the perspective of statistical analysis, but more efforts are needed to strengthen governance practices.

### Policy recommendations and priorities
- Strengthen Central Bank institutional capacity:
  - pursue greater formal legal independence;
  - enhance enforcement powers; and
  - allow more flexibility on individual compensation to better attract and retain talent.
- Close data gaps to support regulation and supervision of MBF.
- Intensify financial stability work:
  - expand assessment and mitigation of MBF-related financial stability risks;
  - prioritize finalization of the investment fund pricing errors workstream.
- Improve oversight of SPEs:
  - deepen regulatory and supervisory attention beyond statistical analysis;
  - strengthen governance practices for SPEs.
- Use Ireland’s regulatory experience to promote EU convergence on MBF oversight.

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## Content in this bundle

- **1irlea2022008**
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_Source: https://www.imf.org/en/publications/cr/issues/2022/07/25/ireland-financial-sector-assessment-program-technical-note-on-oversight-of-market-based-521278_