143. Deputy Shay Brennan asked the Minister for Enterprise, Tourism and Employment to outline any assessment his Department has undertaken of the need to update company law to facilitate the greater use of distributed ledger technology for the tokenisation of funds set up as Irish companies; and if he will make a statement on the matter. [45470/26]

Sentiment score: 0.34

Ireland's funds industry manages trillions in assets and supports over 20,000 jobs. It is one of our most significant internationally traded sectors. Globally this sector is now moving rapidly towards tokenisation and the use of distributed ledger technology. Will the Minister advise what assessment the Department has undertaken of whether our company law framework, including the Companies Act 2014, ICAP and the Investment Limited Partnerships Act are fit for purpose to support this transformation?

Sentiment score: 0.32

I thank the Minister. He will appreciate there is an urgency about this issue. The core requirement from the funds industry is quite narrow. It is recognition that distributed ledger technology is a valid medium for share issuance for transfer, registration and record keeping. No radical change is being sought, just some targeted non-technology-focused amendments to key relevant Acts. Major international asset managers are already launching tokenised fund products, particularly in the money market funds where Ireland is Europe's leading domicile. Is the Department aware of what legislative changes need to be implemented and of the urgency with which clarity needs to be communicated to fund managers? Is the Minister actively considering legislative changes at this time, and if so, over what timeframe?

Sentiment score: 0.23

The Minister will appreciate that the risk here is a straightforward competitiveness one. If competing jurisdictions provide clearer legal certainty first, the product development and the jobs that go with it will go elsewhere. The question is not whether tokenisation or distributed ledger technology will become a core component of the funds industry, but whether Ireland will be ready in time to maintain its leading global position in the funds sector. Our reputation in financial services was largely built on anticipating market developments and rapidly adapting to them. Does the Minister accept that timely action on this issue is necessary and will he commit to engaging with industry stakeholders on specific legislative amendments that have been identified and other requirements that would support the industry?

Sentiment score: 0.37