Central Bank of Ireland hosts international conference on macroprudential policy for investment funds

The Central Bank of Ireland today hosts an international conference on Macroprudential Policy for Investment Funds.

Welcoming guests to the conference, Governor of the Central Bank of Ireland Gabriel Makhlouf said: “The conference is designed to bring together different perspectives from a range of stakeholders – including central banks, securities regulators, industry representatives and academics. We have made good progress in developing a macroprudential perspective in the regulation of the funds sector in recent years, and we should build on this momentum. Enhancing the resilience of the sector, given its increasing systemic importance, must remain a key priority for policymakers internationally”.

The Governor added: “The investor protection perspective (in the regulation of the sector) needs to be complemented with a financial stability one. I firmly believe that both perspectives are complementary. You cannot have one without the other.”

The conference follows the Discussion Paper - An approach to macroprudential policy for investment funds published by the Central Bank of Ireland in July 2023. The aim of the conference is to further advance the discussion on developing an overarching macroprudential framework for the funds sector.

The conference included keynote speeches from Verena Ross, Chair, European Securities and Markets Authority (ESMA) and Klaas Knot, President of De Nederlandsche Bank and Chair of the Financial Stability Board (FSB).

Closing the event, Deputy Governor Vasileios Madouros said: “Strengthening the role of capital markets in financing the broader economy can entail significant macro-financial benefits. For those benefits to be realised, though, it is important that this form of financial intermediation is sustainable and resilient to shocks.” He also emphasised the need for an internationally coordinated approach in progressing this policy agenda, noting: “Capital markets are inherently global in nature. So international coordination is critical, to both understand the risks and to take action to mitigate them.”

The Central Bank will publish a Feedback Statement later this summer, summarising the written feedback on the Discussion Paper and a summary of the broad themes that emerged during today’s conference.

ENDS

Central themes for the conference panel sessions cover systemic risk and the need for a macroprudential framework for investment funds; potential macroprudential tools for investment funds and operationalising a macroprudential framework; and discussing the interaction of investor protection and macroprudential perspectives.

Read the full programme here.