Central Bank set to clampdown on number of boards directors sit on
There are over 2,000 people working as funds directors in Ireland for major money managers such as BlackRock, Pimco and Invesco.
The number of funds domiciled in Ireland has jumped by over 50pc to 5,897 in ten years, attracted by the country's low tax base and business-friendly laws.
Last year, the central bank said it would relax a requirement that funds have to have two Irish resident directors out of concern that there were not enough people with the right skills to fill the roles. But after consulting with industry, the central bank has decided to retain the rule.
"The size of the population, over 2,000 active directors, and the depth of experience was one of the reasons to retain the requirement," Mr Murphy said.
Ireland's success in attracting investment funds and financial vehicle corporations, which are used by companies to repackage debt, has made it the third biggest shadow banking market in the Eurozone behind Luxembourg and the Netherlands, with approximately €2.9 trillion of assets, according to data from the European Central Bank (ECB).
Shadow banks provide financing services, but are not regulated as tightly as mainstream banks.
Financial vehicle corporations, which are largely based in the IFSC, have to report their assets and liabilities to the ECB. But there are other special purpose vehicles, which number between 600 and 700, that do not currently have to report.
With the Financial Stability Board (FSB), a panel made up of central bankers, finance officials and top regulators from the world's largest economies, as well as Europe's top financial risk watchdog, the European Systemic Risk Board (ESRB), looking for more information about shadow banks, the Irish central bank is considering requiring these entities to also start reporting data to it.