At a recent event hosted by Vanguard and Arthur Cox LLP, policymakers, market participants and retail investor voices discussed the future of the European ETF industry and the growth potential of the Irish retail investment market. The event discussed the vital opportunity to shift focus from Ireland purely operating as a “fund domicile” to a sophisticated and fast-growing investment market.

During the forum, Derville Rowland, Deputy Governor of the Central Bank of Ireland, delivered a keynote, emphasising the importance of ETFs for the European economy. “Empowering retail investors and increasing their participation in European capital markets is essential for their financial wellbeing, as well as to support the wider European economy. Ireland’s ETF sector has an important role to play in this regard. Simple, cost-efficient, investment options are crucial for empowering customers to invest their savings in capital markets that serve their long-term needs,” said Rowland.

The Potential of ETFs for Europe

Two panel discussions followed, exploring the potential of ETFs for Europe. The first panel discussion, chaired by Tara O’Reilly of Arthur Cox LLP, built on new research by Vanguard which underlined the need to address Europe’s fragmented ETF market structure to improve market liquidity and reduce costs for investors. The second panel, chaired by Lisa Harlow, Head of Vanguard Ireland, focused on fostering growth in the Irish domestic market.

Funds Sector 2030 Review

Neale Richmond, Minister of State for Financial Services, Credit Unions and Insurance also joined the event and in his closing remarks, discussed the need to drive a more vibrant retail investment culture in Ireland, stating, “Ireland has developed as a global centre of excellence for asset management and funds servicing, with key roles as a gateway into the EU for asset managers like Vanguard. Through our recently published Funds Review, the Department of Finance will be working to better align our policies to support a more vibrant retail investment culture in Ireland and firms like Vanguard will play an important role in this work.”

Published in October, the Funds Sector 2030 Review presents significant opportunities to enhance the investment landscape in Ireland. Key proposals include reforming investment taxation to align more closely with other savings products, reducing exit taxes and phasing out the ‘deemed disposal’ requirement. For the ETF sector, the review recommends engaging actively in EU-level regulation. These proposals send a strong growth signal to the Irish ETF sector and could foster a more open and competitive retail investment market.