Domestic

Central Bank of Ireland 2025 Regulatory and Supervisory Outlook Report

On 28 February 2025, the Central Bank of Ireland (CBI) published its 2025 Regulatory & Supervisory Outlook Report which includes key funds sector supervisory activities for 2025/26. It also includes perspectives on the key trends and risk that are shaping the financial sector and its consequent regulatory and supervisory priorities for the next two years. The report is accompanied by a Dear CEO letter which provides a high-level overview of the recent changes to the CBI supervisory model.

European

ESMA publishes report on cost structures in the investment fund industry

On 19 February 2025, the European Securities and Markets Authority (ESMA) published a study examining how size affects costs in the European investment fund market, comparing it with the US market. From a policy perspective, ESMA said that their findings suggest that greater consolidation could benefit European investors through cost efficiencies, assuming unimpaired competition. From an investor protection perspective, ESMA said that their analysis suggests that investors should still consider costs carefully when taking investment decisions and awareness of fund costs and their potential drivers is key.

ESMA publishes MMF stress testing update

On 14 February 2025, ESMA published translations of its updated guidelines on stress test scenarios under the Money Market Funds Regulation ((EU) 2017/1131). The updates will apply from 24 April 2025.

ESMA analysis of AI in EU investment funds

On 25 February 2025, ESMA published analysis on the impact of artificial intelligence (AI) in EU investment management looking at the operational use of AI by fund managers as well as the portfolio allocation to AI-related companies.

IOSCO consultations on liquidity risk management for CIS, including OEFs

The International Organization of Securities Commissions (IOSCO) held a consultation on its revised recommendations for liquidity risk management for collective investment schemes, with a focus on open-ended funds. IOSCO also held a consultation on complementary guidance for the effective implementation of the recommendations for liquidity risk management. The consultations closed on 11 February 2025 and IOSCO aims to produce its final report in the first half of 2025.

For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.

This publication provides an overview of certain legal and regulatory developments that may be of interest to certain entities. It does not purport to provide analysis of law or legal advice and is strictly for information purposes only.