Michael McGrath (Cork South Central, Fianna Fail)
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317. To ask the Minister for Finance his plans to review the supervision arrangements for Irish investment funds; and if he will make a statement on the matter. [34634/14]

Michael Noonan (Limerick City, Fine Gael)
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In replying to the Deputy's question I am assuming that "investment funds" refers to collective investment schemes including undertakings in collective investment in transferable securities (UCITS) and alternative investment funds (AIFs).

The Central Bank of Ireland ("the Central Bank") supervises regulated investment funds and the legislative framework for the supervision of investment funds in Ireland derives primarily from European law. The body of law specifically concerning investment funds includes the UCITS Directives, the Alternative Investment Fund Managers Directive and a number of other primary, secondary and supplementary measures. My Department and the Central Bank engage with the relevant European institutions and supervisory authorities on a continuing basis to ensure that that framework is current, robust and proportionate.

Furthermore, the supervision of investment funds occurs within the broader context of the regulation of financial service providers. The law concerning financial regulation generally has seen significant changes in recent years and, in particular, through changes in Central Bank legislation.

I have brought forward a very wide range of statutory powers under the Central Bank Reform Act 2010, which sets out a far-reaching regime for the Central Bank to set out and enforce standards of fitness and probity across the financial service sector. The Central Bank (Supervision and Enforcement) Act 2013 also sets out a number of new provisions that are relevant. The fitness and probity provisions are reinforced by the whistle-blower protections. The Act also provides for the Central Bank to commission, as part of the proper and effective regulation of financial service providers, an independent expert report at the cost of the financial service provider. It strengthens the authorised officer regime, enables the Central Bank to secure assurances from auditors of regulated financial service providers.  It also strengthens the enforcement powers of the Central Bank and provides for a substantial increase in monetary penalties. The Central Bank also has the power to suspend or revoke a regulated entity's authorisation following an inquiry.