Mr. Pat Lardner:

Deputy Donnelly has asked a number of excellent questions. I will separate the information into a couple of parts. There are risks associated with quantitative easing and they are not necessarily the same risks associated with capital markets union. The interesting question will be, if, at the point at which quantitative easing will be unwound, where we will be in the capital markets union project when that happens.

Speaking for our sector we are a regulated business so there are very strict product rules, for example, about what one can invest in any fund which is distributed. There are rules around what type of entity can manage an alternative investment fund. There are rules around European long-term investment funds. There is an existing body or regulation that has meant that even with regard to some of the well documented difficulties over past years these tended not to happen as much in a regulated fund or product space, which is why funds are important. I would not necessarily concur with Mr. Purtill's view that the same rules that apply to banks should apply to non-banks. The rules that applied to banking did not necessarily always work. There is a fundamental and structural difference. For example, if a depositor gives money which is put on a balance sheet to be deployed in various mechanisms or ways, that is different to a contractual relationship wherein if a depositor gives money for a particular investment purpose within particular product rules because that is a totally different activity. What we are trying to establish with capital markets union is the premise that a singularity or a single way in financing the economy in itself brings risks with it. Therefore, having a range of financing mechanisms is of benefit. That is by no means to say that funds are right or banks are wrong. All of these important sources need to be brought to bear and they all have a benefit.

In terms of knowing one's customer, Ireland as a jurisdiction has been very much to the forefront in exchange of information, and in its obligations under the OECD with regard to transparency to ensure clear information with regard to the regulated funds' activity and as to the identity of investors in the funds. There will always be risks of capital movement. The down side of the question is that if we want commercial activity, which involves a risk, we must have capital to fund it.