Sometimes I have to think hard to decide which business-related stories are of even marginal interest to readers of this column, and sometimes stories just fall over themselves to be included. And although there are currently lots of items that could really do with being examined - Turkey, the Cif/Jif name change, Ryanair and cancelled flights (again!) - I'm sticking to financial services this week because I just can't help myself when banking and investments are stories in themselves.

My main interest recently, in a proprietorial sort of way, was actually the final announcement of the new financial regulatory body. This is not because I'm expecting the CBIFSRA (Central Bank of Ireland and Financial Service Regulatory Authority - what a shame they couldn't come up with a set of initials that could easily be turned into a soundbite acronym) to suddenly take on the mantle of aggressive financial supervisor, but because I cut my banking teeth in the CBI back when permanent and pensionable jobs were all the rage.

And, for some reason, you always have a special place in your heart for your first full-time employer. (As some people may know, my mother accepted the job on my behalf while I was on holiday, thus diverting me from my original career plan of full-time hedonist.)

Given that it was such a long time ago, the modus operandi of the Central Bank has surely changed, but it was interesting to recall that the Government Loans Department was the biggest at the time (that was loans to the government not loans from the government), whereas Banking and Supervision was ensconced in a small office at the back of the building and wasn't even a fully fledged department in its own right.

Now that the Government is falling over itself with money - hell, it's even giving some back to savers now - financial regulation is a watchword on everyone's lips.

Softly, softly and all that, but my old friends at the Central Bank managed to retain their supervision status, which has, presumably, by now been elevated into the front line, despite the criticism it has come under in the past. And this despite some quarters suggesting that another regulatory body altogether was what was required.

So the CBI becomes the CBIFSRA, which splits into two organisations, the Irish Monetary Authority and the Irish Financial Service Regulatory Authority. The Monetary Authority (which doesn't fit in to the abbreviation at all!) will be responsible for implementing the policies of the European Central Bank, while, presumably, suffering sharp intakes of breath every time Mr McCreevy opens his mouth.

The IFSRA will regulate the financial service industry and look after the consumer. The division into two separate authorities also means two separate boards for each, as well as a board for the combined CBIFSA. Where will they fit all of the soundproofed offices? Surely Dame Street will run out of space. Maybe another glorious "landmark" building is what's required!

The whole organisation sounds very much like the governmental hybrids of the past, rather than the lean, mean fighting machines we currently strive for, and there are certainly enough initials there to make everyone feel very important, while having loads of internal departments to shunt disgruntled members of the public to in case they actually have anything to complain about.

Meanwhile, Mr McCreevy has more work to do with the new state pension fund, as he will have to appoint its board in the next few weeks. This board will set the targets for the fund in relation to its investments and, like most funds, its aim will be to generate the best possible return within an acceptable level of risk.

You'd think that this would preclude investing in some of the more awful Irish shares but it appears that some homegrown companies, including the abysmally performing Smurfit Group, has lobbied for the fund to invest in domestic equities. A magnanimous gesture by Smurfit, since it clearly can't expect the fund to invest in Irish shares that have spent the last 10 years declining in price as it has, and therefore must be talking on behalf of other ISEQ grandees.

One of the problems that Irish companies have had over the past couple of years has been diversification out of Ireland by fund managers, who now regard this country as a part of an overall European portfolio and don't see any reason to be overweight in Irish shares. Poorly performing companies had, in the past, reluctant buyers in Irish fund managers who were unable to spread their investments overseas.

The euro has changed all that, but clearly not the mindset of some of those very companies who feel slighted that they have been hung out to dry. However, since the aim of most fund managers (as stated before) is to maximise returns, then the new pension fund is hardly likely to invest in companies that don't help it to achieve those objectives. Even if they were once big companies. Even if they are family dynasties. Even if the managing director earns far too much. What the well-paid burghers of Smurfit et al have forgotten is that fund managers are slaves to performance. The people who actually buy and sell the shares are paid relative to how well they've done over the year. Good performance means more money into the fund and more moolah for the fund manager. A share that spends most of its time gazing into the abyss will never be high on the manager's list, even if s/he has been invited to lunch in the K Club.

I can't say that all fund managers achieve their targets and, of course, when a target is to match a particular index it's not exactly onerous. Even falling short isn't a disaster if everyone else has fallen short too!

(Boasting that you've lost less money than anyone else is perfectly acceptable, even though investors in the fund find it somewhat difficult to take.)

Whether the new fund will invest heavily in Irish shares will depend significantly on the targets that it has set. I don't think that over-investing in Ireland should be one of them. Even if better-paid people than me do.