Dáil Éireann Debate, Wednesday - 11 February 2026
67. Deputy Emer Currie asked the Tánaiste and Minister for Finance if his Department has conducted an economic assessment or is planning any strategic initiatives to protect Ireland’s Funds sector in light of increased international competition. [10520/26]
Amharc ar fhreagraIreland hosts a strong and diverse international financial services industry; we are a global centre of excellence with a key role as a gateway to the EU for asset managers and a distribution centre for funds worldwide. The latest estimate from the IDA and Enterprise Ireland indicates that just over 60,000 are directly employed in the international financial services sector. Furthermore, in terms of those working in the financial services industry (domestically and internationally focused) in Ireland, there are over 120,000 people employed, and these jobs are regionally spread throughout the country, employing highly skilled workers in almost every county. Work is currently underway on a successor strategy to Ireland for Finance, the whole-of-Government strategy for the development of the international financial services sector in Ireland. Anticipated for launch later in 2026, the new strategy will be informed by a wide range of national and international stakeholder engagement, public consultation and research.
The Department of Finance undertook a review of the Funds industry in 2023 and the resulting Funds Review 2030 was published in October 2024. The review identified forty-two recommendations to continue to grow this important sector of our economy. An Implementation Plan for this Funds Review was published in October 2025. This document includes a full breakdown of the recommendations and those responsible for their implementation.
Of the 42 recommendations, the most substantive were categorised into four cohorts:
Grow Exchange Traded Funds
Grow Private Assets
Grow Retail investment
Address the risks and enhance transparency in structured finance.
The recommendations to grow Exchange Traded Funds have been delivered by the Central Bank. The recommendations to grow private assets involves legislative, regulatory and tax changes. These are on track for completion in 2026. Ongoing extensive engagement is in train with the industry and with the Department of Enterprise, Tourism and Employment on changes sought to the 1907 Limited Partnership Act.
In recognition of the importance of encouraging retail investment, Finance Bill 2025 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38%.
As part of Budget 2026, the government announced its intention to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap will take into consideration developments at EU level in respect of the Savings and Investments Union, including the European Commission’s Recommendation on the availability of Saving and Investment Accounts in the Member States, drawing upon best practice in other countries who operate successful savings accounts. I look forward to receiving proposals from my officials on this shortly.
With regard to the recommendations to address risks and support transparency in special purpose entities (SPEs), these remain under consideration. My officials are collaborating with the Department of Justice and other Departments to strengthen the Anti-Money Laundering and the Countering the Financing of Terrorism frameworks.
