Michael McGrath (Cork South Central, Fianna Fail)
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I am aware of the matter that the Deputy has raised. I have not received any correspondence from the Central Bank on this matter. I have been informed by the Central Bank that it does not have any details of the number of Irish investors in this fund.

Investors should be aware that the value of their investments may go down as well as up and the Investor Compensation Scheme - which deals with compensation claims by eligible investors - does not pay compensation in relation to any investment products which fall outside the definition of investment instrument, nor does it pay compensation for any losses incurred due to receiving bad investment advice, if client investments are poorly managed or if the investment performed poorly due to market conditions or other economic forces.

While capital loss is an inherent risk in most investment products, it is important to note that there is a strong legislative framework in place to protect retail investors in Ireland. This includes the following:

Product governance rules under the European Union (Markets in Financial Instruments) Regulations 2017 (‘MiFID Regulations’) apply to distributors of financial instruments as well as their manufacturers. Under these regulations, firms (which are regulated by the Central Bank in Ireland to provide investment advice, sell investment products, and make decisions on clients behalf) are required to meet specific requirements when providing investment advice and selling investment products (being financial instruments, as defined under Annex 1 Section C of the Markets in Financial Instruments Directive). When a regulated firm provides a client with investment advice or makes investment decisions on their behalf, they must:

• Complete a suitability assessment considering the nature and complexity of the product and whether it is suitable for them.
• Ensure the product is in their best interest and they fully understand it.
• Carry out an assessment of clients individual circumstances (knowledge/experience, risk appetite, financial situation) when making a determination about whether the product is suitable for them.
• Provide detailed risk disclosures/warnings in the product brochure and investor documentation.

If a consumer wishes to pursue a complaint against a regulated financial services provider, they must firstly make a complaint to the provider. If the complaint is not resolved, they can then make a complaint to the Financial Services and Pensions Ombudsman (FSPO), the statutory body tasked with the investigation, mediation and adjudication of complaints about the conduct of financial or pension service providers. When the FSPO receives a complaint, it is assessed to determine whether the FSPO can proceed to investigate the complaint. The FSPO has the power to direct a financial service provider to pay compensation of up to €500,000 to a complainant. The FSPO can also direct that a financial service provider rectify the conduct that is the subject of the complaint. There is no limit to the value of rectification he can direct.

In terms of powers available to the Central Bank, the Consumer Protection Code applies to regulated activities of regulated entities operating in the State, including retail intermediaries. The general principles of the Consumer Protection Code note that a regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market, act with due skill, care and diligence in the best interests of its customers, and does not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service.