Publication of the Discussion Paper: An approach to macroprudential policy for investment funds

The Central Bank has today published a Discussion Paper on An approach to macroprudential policy for investment funds available here.

The Discussion Paper (DP11) presents an overview of key considerations for developing and operationalising a macroprudential framework for the funds sector given its growing importance for the functioning of the financial system and real economy. It is designed to engage stakeholders, domestically and internationally, in order to further advance discussion and progress in this area.

DP11 seeks views on a number of issues, including the nature of the systemic risk in this context; the current regulatory framework for the funds sector; the objectives and principles of macroprudential policy; the design of macroprudential tools; and considerations for operationalising the macroprudential framework for the funds sector.

The Central Bank invites relevant stakeholders to provide written responses to the questions contained throughout DP11 until 15 November 2023. Stakeholders are also invited to provide any general observations on the matters discussed or issues raised.