Pearse Doherty (Donegal, Sinn Fein)
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38. To ask the Minister for Finance to provide an update on engagement he has had with the central bank in relation to identifying the gaps in available data on the investment funds sector and the steps being taken to address the lack of information available to the regulator making specific reference to unregulated funds; and if he will make a statement on the matter. [21466/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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My officials continue to work closely with the Central Bank of Ireland (CBI) to identify gaps in available data on the investment funds sector.

The CBI is committed to using data to deliver optimal supervisory outcomes. At a European level, the CBI are working with the European Securities and Markets Authority (ESMA) and peer National Competent Authorities (NCAs) on the development of enhanced reporting arising from revisions to the UCITS and AIFMD frameworks. This work will be ongoing over the next number of years. Data gaps in relation to investment funds is a key area focus of this work.

Additionally, an Integrated Reporting Task Force has been established by ESMA to address data sharing across the EU and the CBI will participate in this work. The CBI is also engaging in relevant European discussions on the topic of data as it relates to non-bank financial intermediation systemic risk, covering access, sharing and coverage, as well as similar discussions internationally with the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO).

The CBI implemented a new daily investment fund return, collecting data on investor flows from each fund on a daily basis, this measure addressed a previously identified data gap. Phase 2 of this implementation, scheduled for the second half of 2025, will gather data on the use of liquidity management tools, whereby funds will report any change in the use of these measures to the CBI as they occur.

Pearse Doherty (Donegal, Sinn Fein)
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39. To ask the Minister for Finance when the Central Bank will begin providing regular relevant datasets on the investment funds domiciled and or administered in Ireland making specific reference to unregulated funds; and if he will make a statement on the matter. [21467/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Statistical data on regulated funds domiciled in Ireland are disseminated on a quarterly basis via a statistical release publication and tables on the Central Bank website www.centralbank.ie/statistics/data-and-analysis/other-financial-sector-statistics/investment-funds, and via the Open Data Portal opendata.centralbank.ie/dataset/?organization=investment-funds. Beyond the regular statistical releases, the Central Bank of Ireland (CBI) also shares data and insights through the Behind the Data www.centralbank.ie/statistics/statistical-publications/behind-the-data publication series.

On the specific matter of the sale of unregulated investment products in this jurisdiction, European and Irish legislation requires the regulation of financial services firms providing investment services in relation to investment products. The law is prescriptive and lists the various type of investment services and investment products falling to be regulated. Regulated firms may also sell investment products which are not specifically mentioned in the law (i.e. unregulated products). Consequently, regulated firms are not prohibited from providing services in relation to unregulated products.

In the course of the extensive report by the Funds Review Team in the Department of Finance for the Funds Review 2030 www.gov.ie/en/department-of-finance/publications/funds-sector-2030-a-framework-for-open-resilient-and-developing-markets-final-report/, data gaps have been identified, notwithstanding the extensive data reporting already required by the Central Bank. Data gaps also exist regarding unregulated investment fund activity in both Ireland and the EU. The Review recommended that the Financial Services Division continue to work with the Central Bank of Ireland to pursue cooperation at EU level regarding the potential to share data on unregulated funds reported to other authorities and to assess key data gaps in relation to unregulated funds. The report was published in October last year and work continues on its implementation.

Pearse Doherty (Donegal, Sinn Fein)
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40. To ask the Minister for Finance to provide an update on the development of a dormant funds scheme for the investment funds sector; and if he will make a statement on the matter. [21468/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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On 22 October 2024 ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ was published. It was a wide-ranging review of the funds and asset management sector.

The Review included a detailed examination of Ireland’s regulatory and supervisory regime for funds and included a recommendation that industry consider the feasibility and design of a scheme for existing and future dormant funds, and funds with uncontactable investors, which incorporates a role for industry in supporting investors to trace unclaimed monies and identify how it might handle investor claims. This can be found in Chapter 5 of the Funds Review 2030 Report, link below.

www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/.

The Department of Rural and Community Development are the government department with responsibility for the Dormant Account Fund. The administration of the Fund is delivered through the National Treasury Management Agency on behalf of the State. The Dormant Accounts Act 2001 was established to reunite account holders with their funds. Unclaimed funds are transferred to the Dormant Accounts Fund, which is managed by the National Treasury Management Agency, providing the beneficial owner the right to reclaim their money at any time.

While the Dormant Accounts Act can provide a basis to develop an approach, investment funds have particular characteristics that may require a more targeted framework and primary legislation. The Department of Finance will continue to work closely with Industry and the Central Bank as work commences on progressing this recommendation.

The Central Bank processes applications seeking the revocation of authorisation of investment funds on an ongoing basis. A dormant fund is a fund that never launched or, if launched, has closed to subscriptions, is no longer active and is reporting a zero net asset value (NAV).

The Central Bank began a review of all dormant funds in Q4 2023. At that time:

• 2,000 authorised funds were classified as dormant funds
• Out of these 300 were identified as being authorised in the last 18 months and deemed out of scope of the exercise
• The remaining 1,700 funds were contacted with a request to apply for a revocation by 30 June 2024
• 359 applications for revocation were received by the deadline with a further 148 received subsequently during 2024.

• uncontactable shareholders, remaining monies cannot be paid out;
• remaining shareholders have not submitted documents to comply with Anti-Money Laundering (AML) requirements and monies cannot be paid out; and
• issues with remaining assets e.g. illiquid assets.