Madam, – Regulation of the funds industry is important because the collapse of subprime and other funds played a crucial role in the financial crisis. Regulation is also important in the context of investor protection.
Gary Palmer as a spokesman for the funds industry in Ireland is entitled to represent their views (Letters, September 13). However, he is incorrect in stating that Ireland does not have responsibilities in regulating all funds controlled by Irish entities, and those funds quoted on the Irish Stock Exchange. Documents must be submitted to the Irish Stock Exchange for approval; regulatory approval is required from the Financial Regulator.
Gary Palmer in an interview with the Financial Times(April 7th, 2008) is quoted as stating that due to a change introduced in February 2007, provided documents are provided to the Irish regulator by 3pm, a fund will be authorised the next day. Given that these documents may be up to 200 pages of complex legal and financial information, and that a normal working day in the regulator ended at 5pm (at that time), we can infer that there was minimal scrutiny of such documents.
Hedge and other funds will be more heavily regulated in the future. Much of this regulation will originate from the EU, and owes its origin to the financial crisis and also financial scandals such as that associated with Bernie Madoff. Some funds managed in Ireland have also, unfortunately, been linked in media reports with these scandals.
The fund management industry needs to recognise the issue of poor regulation in the past. In the current financial and economic context, a “race to the top” in terms of regulation will ensure its long-term survival, and the protection of existing jobs. – Yours, etc,