Mr. Aidan Carrigan:

I do not disagree with much of the Deputy's commentary. He asked what advice the Department is taking on this issue. First, we have talked to a range of stakeholders. We have been communicating and have had numerous meetings with the European Commission in which we have developed our understanding of its issues. We have met with a number of other member states and will be meeting other member states. We have been party to various workshops and discussions on this. Of course we have talked to the industry as well, but we also rely heavily on our Central Bank colleagues who are with us today who have been regulating this sector successfully for many years in Ireland. Their advice relates to how we can effectively regulate this sector through a combination of the enhanced proposals, redemption gates, dealing with sponsors' issues and liquidity fees.

There are a range of liquidity issues and our assessment based on that wide consultation is that a broader range of regulatory measures can be pulled together to greatly enhance regulation and keep it secure while, at the same time, not undermining the industry. That is the balance we are trying to achieve as a Government. If the fund collapses, the investor loses. Our concern is financial stability.