Investment funds based here will no longer have to hire Irish resident directors under a Central Bank plan to beef up oversight within the global fund industry's biggest hubs.
Funds worth an estimated €1.5trillion are based here, often in Dublin's IFSC, because of the low tax rates but this also means the funds' promoters - usually fund managers in London or New York - have to hire two Irish residents as directors of the management companies that oversee the funds.
The number of funds has almost doubled to 5,665 since 2001, creating a windfall for a select set of Irish residents who are able to sell their services as directors. But there is also now a skills gap as tougher European rules brought in after the financial crisis require directors to be more vigilant and have a wider range of risks.
"In relation to risk management and to some extent investment management, there is a limited pool of skills within the country to sit on boards," Martin Moloney, head of markets policy at the Irish central bank, told Reuters in an interview.
"We relaxed requirements in order to allow management companies to go outside the country to get those experts if they feel they can't get them here."
The guidelines are expected to be rolled out next year following a three-month consultation.