The Government plans to put in place a legal framework for corporate funds, Simon Harris, the Minister of State with responsibility for the IFSC, told the Dáil yesterday.

He said the Irish Collective Asset Management Vehicles (ICAV) Bill would allow Ireland better compete for investment with other fund domiciles on an "equal footing" and maintain the country's reputation as a "safe place to do business".

“With the ICAV, Ireland will be able to offer fund managers a more complete range of corporate structures to meet their various needs,” Mr Harris said. “The ICAV is the first really significant development on this front since the introduction of the common contractual fund 10 years ago.”

The Minister noted that Luxembourg, Italy, Spain, France, Germany, the UK and the US already have similar structures in place. "What we are doing with the ICAV is not novel or untested, rather we are providing those whose job it is to secure investment and jobs for Ireland with the best tools to keep up with our competitors." Some 5,671 investment funds are authorised and regulated by the Central Bank of Ireland while 6,962 are administered or domiciled here.