IFS2020 A Strategy for Ireland’s International Financial Services sector 2015-2020

1

Progress Report

Q3 2017

1 | P a g e

Table of Contents

Foreword ..................................................................................................................................... 2

Progress Report ........................................................................................................................... 3

Strategic Priority 1 - Promote Ireland as a location for International Financial Services & world class innovative products & services ............................................................................................. 5

Strategic Priority 2: Drive continuous improvement in the operating environment & competitiveness of Ireland's IFS sector ......................................................................................... 7

Strategic Priority 3: Drive Research, Innovation & Entrepreneurship in the IFS sector, with a particular focus on financial technology & governance, risk & compliance ..................................... 9

Strategic Priority 4: Develop job-creation opportunities from emerging IFS sub-sectors & new markets 11

Appendix 1 Monitoring Dashboard ......................................................................................... 12

Appendix 2 Glossary of Terms ................................................................................................ 15

2 | P a g e

Foreword

I am pleased to introduce this progress report documenting the

implementation of the IFS2020, the Government strategy for Ireland’s

international financial services (IFS) sector. This is the tenth IFS2020

quarterly progress report.

This progress report, which documents progress in implementing the

Action Plan 2017 for Q3 (July – September 2017), shows continued

progress on the implementation of 2017 measures. I am pleased to say

that all measures due for a Q3 2017 completion have been successfully completed on time.

Q3 has been my first full quarter leading the IFS2020 Strategy and throughout Q3 I engaged in a

series of regional outreach programmes across Ireland in order to better understand and appreciate

the challenges and opportunities for IFS firms in regional towns and cities. I believe our regional

centres have a lot to offer firms and employees alike, for firms the regions offer lower costs and

greater staff retention, while for employees they can enjoy faster commuting times and a lower cost

of living than Dublin.

My schedule of domestic visits included Limerick City, Cork City, Clonakilty and Killorglin, and Derry

and Letterkenny. In Cork, Limerick and Letterkenny I had the opportunity to chair stakeholder

roundtables which gave me an insight into the benefits of each region and how their offering could

be further improved. In Clonakility I had the pleasure of announcing 80 new jobs at Enterprise

Ireland firm Global Shares. Global Shares is the perfect example of an Enterprise Ireland client

growing from a regional location into a global leader in financial services.

In addition to domestic travel I have also undertaken a number of international visits in Q3. In

September I visited London and Zurich to promote our IFS offering. In London I addressed a dinner

hosted in the embassy with the cooperation of Sustainable Nation Ireland. Green Finance is an ever

growing subsector of financial services with Sustainable Nation doing significant work in this area.

In Zurich I completed an Enterprise Ireland programme of events to showcase Enterprise Ireland

clients across Switzerland, Germany and Austria. I also addressed the Irish Funds Zurich Seminar. The

funds sector has been significantly beneficial to Ireland and it was a pleasure to showcase the

attractiveness of the sector in Ireland to an international audience in Zurich.

I must thank the embassy network, IDA, EI and industry stakeholders for facilitating and assisting in

these international visits.

Michael D’Arcy T.D. Minister of State for Financial Services and Insurance Chair of the IFS2020 Joint Committee

MoS

Image

3 | P a g e

Progress Report

Table 1 Monitoring Dashboard – Measures for Delivery in Q3 2017

M Title Lead Deadline Q3

Strategic Priority 1 - Promote Ireland as a location for IFS & world class innovative products and services

1 A public sector financial services sub-group to engage with the Cabinet Committee on Brexit

D/FIN Quarterly

2 Further progress coordinated IFS messaging under the IFS Ireland banner brand

IDA, EI and Comms Subgroup

Quarterly

3 Strategic promotion and marketing of Ireland’s IFS sector overseas under the IFS Ireland banner brand:

a. Overseas trade missions

b. Shared IFS calendar

c. Ministerial and other official visits

d. Banner brand – public sector e. Banner brand – industry

D/FAT D/FAT EI, IDA, D/FAT IDA, EI IAC

Quarterly Quarterly Quarterly Quarterly Quarterly

5 Plan the European Financial Forum 2018 IDA Quarterly

Strategic Priority 2 –Drive continuous improvement in the operating environment and competitiveness of Ireland’s IFS Sector

9 Deliver a Higher Diploma in Fintech and a Master’s Degree in Fintech

D/ES Q3

10 Deliver a specialist Postgraduate Diploma in Aviation Finance and Leasing and an MBA (Aviation Management Stream)

D/ES Q3

14 Promote IFS as a career option through the SFI Smart Futures Programme

D/BEI (formerly D/JEI)

Q3

Strategic Priority 3 – Drive research, innovation & entrepreneurship in the IFS sector, with a particular focus on financial technology & governance, risk & compliance

19 Develop opportunities, in co-operation with the Ireland Strategic Investment Fund (ISIF), for co-investment proposals with a particular focus on asset management

IDA Q3

22 Establish a Fintech and Payments Advisory Panel FPAI Q3

24 Promote and ensure market diversity with priority given to FinTech & Payments in well-defined markets

EI Quarterly

26 Better connect Ireland’s Regional FinTech landscape

FPAI Q1 and Quarterly

Strategic Priority 4 - Develop job-creation opportunities from emerging IFS sub-sectors and new markets

34 Ireland as a global location for private equity funds management

D/FIN Q3

4 | P a g e

36 Assess Ireland’s legislative framework for financial markets infrastructures to ensure it meets the needs of Irish market participants, consistent with EU law and sound financial regulation

D/FIN Q3

38 Aviation Leasing and Financing IAC Q3

Legend

Measure delayed Measure at risk of being delayedMeasure on trackMeasure Complete

5 | P a g e

Strategic Priority 1 - Promote Ireland as a location for International Financial Services & world class innovative products & services This strategic priority focuses on enhancing Ireland’s standing and reputation as a location for, and producer of, international financial services and products, including innovative financial technologies. IFS2020 provides the context for a more strategic and coordinated approach to promoting, marketing and branding Ireland’s IFS sector internationally, leveraging the expertise and international reach of Departments, State Agencies and our embassy and consulate network, in conjunction with industry stakeholders.

Table 2 Strategic Priority 1: Promote Ireland as a location for IFS

Status at Q3 2017

M #1 A public sector financial services sub-group to engage with the Cabinet committee on Brexit

Q3 2017 Update: The sub-group meets regularly, generally bi-monthly, to discuss issues relevant to financial services with a current focus on the upcoming negotiations. A detailed position paper has been prepared. The subgroup held its fifth meeting in July 2017.

Measure on Track

M#2 Further Progress coordinated IFS Messaging under the IFS Ireland Banner Brand

Q3 2017 Update: The PSCG Communications sub-group met a number of times during the quarter. Updates were made to the IFS calendar of events and to IFS messaging.

A revised edition of ‘Economic Messages for International Audiences’ was compiled with input from across Government Departments and State Agencies. The new edition, which issued on 31 July, includes updated material on IFS and on Ireland’s bid to host the European Banking Authority.

Some further updates were made to the IFS messaging deck, which is for use by public and private sector stakeholders.

The sub-group had an initial discussion on messaging and communications around the 2018 European Financial Forum. This will be the main focus of the sub-group for the fourth quarter of 2017.

Measure on Track

M#3 Strategic promotion and marketing of Ireland’s IFS sector overseas under the IFS

Q3 2017 Update: Minister of State D’Arcy undertook a series of visits across Europe in September to promote Ireland’s IFS sector. In London, the Minister met with IFS companies and contacts, and gave an address at a dinner hosted at the Embassy in cooperation with Sustainable Nation Ireland.

The Minister undertook a wider programme organised by Enterprise Ireland in Zurich to showcase Ireland and EI client companies across key target markets in Germany, Austria and Switzerland.

Measure on Track

6 | P a g e

Support for the visits was provided by Ireland’s Embassy network.

The 2017 shared IFS calendar of events has been updated with inputs from stakeholders and circulated to the Joint Committee.

M#5 Plan the European Financial Forum 2018

Q3 2017 Update: Planning for the third European Financial Forum, to take place on Wednesday 31 January 2018 in Dublin Castle, progressed well during the quarter. In addition to the conclusion of the procurement process to secure a professional partner to support the organisation of the event, significant progress was made in securing some of the speakers and more invitations to participate were issued.

Measure Complete

7 | P a g e

Strategic Priority 2: Drive continuous improvement in the operating environment & competitiveness of Ireland's IFS sector

This strategic priority focuses on the importance of improving Ireland’s standing as a competitive location for innovative IFS companies. It covers a broad range of issues, including education and skills; promotion of IFS as a career option for young people; promotion of Ireland as an attractive location for mobile international talent; promoting the regional dimension of Ireland for IFS; developing the business environment for IFS, including the regulatory, and infrastructure arrangements.

Box 2: Diversity and Inclusion – A Selection of Updates from Q3 2017

Diversity and inclusion is an area we seek to promote throughout IFS2020, diversity includes the inclusion of people from a variety of backgrounds to ensure active participation by gender, age, sexual orientation, disability and ethnicity. A selection of some developments in this area in Q3 is set out below:

Insurance Ireland’s Year of Inclusion

Insurance Ireland continued its 2017 Year of Inclusion by holding two workshops in Q3 on the issues of age and disability, as well as supporting the second hosting of the Dive In Festival – the diversity and inclusion festival for insurance. The Q3 events evolved from the earlier initiatives which raised awareness in the industry of the Year of Inclusion’s objectives to gain a greater understanding of age and disability issues and how companies can respond.

The first workshop took place on 5th September and was run in conjunction with the National Council for the Blind in Ireland and the Disability Federation of Ireland. It focused on the importance of understanding disability issues and applying best practice solutions in the workplace to bring about real change. The second workshop focused on Age to understand the personal, cultural and structural effects of ageism and the impact of unconscious bias. The workshop was run in conjunction with Ciaran McKinney from Age and Opportunity and saw a strong turnout of members and engagement on the issues.

Over 140 people also attended the Dive In Festival which took place at the National Concert Hall on Tuesday 26th September. The focus of this year’s Dublin event was on recognising and bridging the generation gap in today’s competitive workplaces. The speakers at the event included Dr. Mary Collins, Coaching Psychologist, Brid Horan, Non-Executive Director and Board Chair at ISAX (Ireland Smart Ageing Exchange), Ben Butler, founder of Keep Appy and Elaine Russell, Head of Women Returners Ireland. The speakers talked about trends in this area and offered practical tips on what the industry can do to ensure an inclusive, progressive workplace that will serve both customers and businesses.

Insurance Ireland also proposes to develop a reference guide to capture the work undertaken during the year which member companies can use as a resource for HR, communications and inclusion staff.

8 | P a g e

Table 3 Strategic Priority 2 Operating environment & Competitiveness

Status at Q3 2017

M#9 Deliver a Higher Diploma in Fintech and a Master’s Degree in Fintech

Q3 2017 Update: The Higher Diploma in Fintech commenced in Q3 2017, supported via the Springboard + Initiative. In collaboration with the Summit Finuas Network, the National College of Ireland (NCI) commenced delivery of the Master’s Degree in Fintech in Q3 2017.

Measure Complete

M#10 Deliver a specialist Postgraduate Diploma in Aviation Finance and Leasing and an MBA (Aviation Management Stream)

Q3 2017 Update: In Q3 2017, the Aviation Finance Skillnet Network and the University of Limerick commenced delivery of the Specialist Diploma in Aviation Leasing & Finance (NFQ Level 9; part-time). Key topics addressed on the diploma include air transportation, aircraft leasing, corporate airline finance, integrated risk management and the legal aspects of aviation finance. Participating enterprises include Sky Leasing, ELFC, GECAS, Capita and FPG Amentum. In Q3 2017, the Aviation Finance Skillnet Network and the University of Limerick commenced delivery of a Corporate MBA Aviation Finance Stream; (NFQ Level 9; part-time). Industry specific content undertaken as part of the MBA includes airline finance, fleet planning and ground operations. The programme combines essential business management topics with content relating specifically to the aviation sector.

Measure Complete

M#14 Promote IFS as a career option through the SFI Smart Futures Programme

Q3 2017 Update: Science Foundation Ireland have career profiles of people working in the financial industry represented on www.smartfutures.ie. Many Smart Futures activities and materials support IFS as they support the underlying skills relevant to this industry, for example, Smart Futures has developed a career sheet ‘Smart Futures: Working in Maths’ incorporating IFS career paths, which is distributed to all schools and at all career events that Smart Futures attend. When required, Smart Futures also call on volunteers working in the financial services industry to attend talks in schools or at events throughout the year.

Measure Complete

9 | P a g e

Strategic Priority 3: Drive Research, Innovation & Entrepreneurship in the IFS sector, with a particular focus on financial technology & governance, risk & compliance

This strategic priority focuses on the significant role of research, innovation and entrepreneurship in developing Ireland’s status as a leading global location for Financial Services. The objective is to continue to develop and promote Ireland as a centre for innovative, scaling and next generation companies with world-class capabilities in financial technology, governance, risk and compliance, working within an innovation ecosystem that supports advanced research and commercialisation in areas such as Data Analytics, Mobile Banking/Payments, Cloud Computing, etc.

Table 4 Strategic Priority 3: Research, Innovation and Entrepreneurship

Status at Q3 2017

M#19 Develop opportunities, in co-operation with the Ireland Strategic Investment Fund (ISIF), for co-investment proposals with a particular focus on asset management

Q3 2017 Update: IDA Ireland and the ISIF have successfully co-operated on a number of investments up to the end of Q3 2017 in the asset management sector and this has expanded to include FinTech and Payments companies.

Measure Complete

M#22 Establish a Fintech and Payments Advisory Panel

Q3 2017 Update: The FinTech, Payments, Regulatory and new Start up workstreams are a focal point for all players in the ecosystem. A significant amount of work is ongoing across a number of initiatives:

connecting Fintech and Payments in Ireland - hosting FPAI networking events to bring key players together.

co-ordinating Fintech and payment activity – working groups and sub working group established to coordinate and drive initiatives to deliver against IFS2020 priorities.

weekly and monthly meet-ups – recurring meet-up across each of the 4 working groups and sub work streams.

Measure Complete

M#24 Promote and ensure market diversity with priority given to Fintech & Payments in well-defined markets

Q3 2017 Update: Following the Q2 update, the increased calendar of activity and Ministerial led trade missions has continued into Q3. The Enterprise Ireland Strategy 2017-2020 ‘Build Scale, Expand Reach’ is about strengthening Irish enterprise, across all regions, and expanding their reach in diverse global markets. There have been specific FinTech led events in Denmark, Singapore & Japan, Hong Kong and Switzerland in Q3. The event in Switzerland was led by Minister of State D’Arcy. Numerous multi sectoral events and initiatives were held in the USA, UK, Europe, Middle East, Asia Pacific and Australia. These events

Measure on Track

10 | P a g e

have been coupled with market awareness building activity and inward buyer visits to Irish companies throughout the quarter. At International Markets Week 2017, Minister D’Arcy visited a number of Irish FinTech companies looking to explore new markets with the help of EI’s international office network. The Minister also opened EI’s CEO FinTech forum, involving over 30 Irish companies, the topic being internationalisation and planning for 2018.

M#26 Better connect Ireland’s Regional Fintech landscape

Q3 2017 Update: Focus has been on enabling local FinTech players connect and engage through events and meet-ups. Initiatives which are contributing to better connection across Ireland are:

FPAI Research and Technology Showcase Sept 28th, the second in the series of community events that showcase research talent and expertise from centres based in Universities across Ireland and the potential that exists for companies in the FinTech sector to engage and leverage that expertise to their advantage.

Planning is underway for an Instant Payments Hackathon to showcase Irelands Innovation credentials to coincide with MoneyConf. Teams will be invited from across the country and from abroad.

Some measures have been proposed to bring together innovation partners from the full range of the FinTech community and from all regions.

FPAI have met with and endorsed the formation of several new FinTech Hubs.

Measure Complete

11 | P a g e

Strategic Priority 4: Develop job-creation opportunities from emerging IFS sub-sectors & new markets

This section reports on progress in developing new opportunities from IFS sub-sectors. There is one measure with a Q3 2017 deadline.

Table 4 Strategic Priority 4: Develop job-creation opportunities from emerging IFS sub-sectors & new markets.

Status at Q3

2017

M#34 Ireland as a global location for private equity funds management

Q3 2017 Update: At its meeting in July 2017 the Government approved the legal drafting of the Investment Limited Partnership (Amendment) Bill 2017. Drafting of technical amendments to the Irish Collective Asset-management Vehicles Act 2015 to assist with that Act’s operation were also agreed. A draftsperson has been appointed. Officials are engaging with the drafter and updating stakeholders on developments.

Measure on Track

M#36 Assess Ireland’s legislative framework for financial markets infrastructures to ensure it meets the needs of Irish market participants, consistent with EU law and sound financial regulation

Q3 2017 Update: In July 2017, the Minister issued a statement encouraging applications to the Central Bank of Ireland to establish a Central Securities Depository in Ireland. The Department is also continuing its work with stakeholders to assess Ireland’s current arrangements around market infrastructure, specifically in the event of the UK exiting the EU. This assessment takes into account European Legislation and has included consultation with industry and government agency stakeholders. The Department is currently in negotiations on three files at European Council level around the supervision and other aspects of Central Counterparties (CCPs - which provide clearing of financial instruments) including Recovery and Resolution.

Measure Complete

M#38 Aviation Leasing and Finance

Q2 2017 Update: As part of the National Civil Aviation Development Forum (NCADF), a working group dedicated to Aviation Leasing and Finance has been meeting since Q2 2016. The focus of this group has overlap with that of IFS2020.

Measure on Track

12 | P a g e

Appendix 1 Monitoring Dashboard

Action M Title Lead Deadline Q1 Q2 Q3 Q4

1 Promote Ireland as a location for IFS & world class innovative products and services

1 A public sector financial services sub-group to engage with the Cabinet Committee on Brexit

D/FIN

Quarterly

2 Further progress coordinated IFS messaging under the IFS Ireland banner brand

IDA, EI and Comms Sub Group

Quarterly

3 Strategic promotion and marketing of Ireland’s IFS sector overseas under the IFS Ireland banner brand:

a. Overseas trade missions b. Shared IFS calendar c. Ministerial and other official visits d. Banner brand – public sector e. Banner brand – industry

D/FAT D/FAT EI, IDA, D/FAT IDA, EI IAC

Quarterly Quarterly Quarterly Quarterly Quarterly

4 Review the European Financial Forum 2017 IDA

Q1

5 Plan the European Financial Forum 2018 IDA

Quarterly

6 Host the European Financial Forum 2018 IDA

Q1 2018

7 Conduct a mapping review of access to equity finance in Ireland with a focus on access by SMEs and issues relating to investor interest

D/FIN Q2

2 Drive continuous improvement in the operating environment and competitiveness of Ireland’s IFS sector

8 Develop a Master’s Degree in International Financial Services Law

D/ES Q4

9 Deliver a Higher Diploma in FinTech and a Master’s Degree in FinTech

D/ES Q3

10 Deliver a specialist Postgraduate Diploma in Aviation Finance and Leasing and an MBA (Aviation Management Stream)

D/ES Q3

11 Develop and deliver an Introduction to Aviation Finance and Leasing short course

D/ES Q2

12 Development of the IFS apprenticeship programmes

D/ES Q4

13 Monitoring skills needs of IFS industry and stakeholder engagement on education and skills

D/ES Q4

14 Promote IFS as a career option through the SFI Smart Futures programme

D/JEI Q3

15 Liaise and inform regarding changes to Ireland’s network of double taxation treaties

D/FIN Q4

16 Communicate the Central Bank’s approach to authorisation processes

PSCG

Q2, Q4

17 Coordinate industry-wide engagement on new payment technologies

FPAI, BPFI

Q2, Q4

13 | P a g e

3 Drive research, innovation & entrepreneurship in the IFS sector, with a particular focus on financial technology & governance, risk & compliance

18 Promote Ireland’s IFS sector on the Tech/Life Ireland Platform

EI Q2

19 Develop opportunities, in co-operation with the Ireland Strategic Investment Fund (ISIF), for co-investment proposals with a particular focus on asset management.

IDA, ISIF

Q3

20 Assess the feasibility of establishing a Corporate Alliance Programme for FinTech & Payments companies

EI Q2

21 Map financial services research and innovation activities across Ireland

FPAI

Q2

22 Establish a FinTech & Payments Advisory Panel

FPAI

Q3

23 Appoint FinTech & Payments “advocates” in key markets

EI, IDA

Q2

24 Promote and ensure market diversity with priority given to FinTech & Payments in well-defined markets

EI

Quarterly

25 Promote the new Access USA Programme with FinTech & Payments companies

EI

Q1

26 Better connect Ireland’s Regional FinTech landscape

FPAI

Q1 and Quarterly

27 Provide a dedicated fund for FinTech start-ups EI

Q4

28 Host a payments industry roundtable in London to discuss opportunities in the sector

IDA

Q1

29 Conduct public consultation on crowdfunding D/FIN & SME State Bodies Group

Q1

4 Develop job-creation opportunities from emerging IFS sub-sectors and new markets

30 Promote IFS on a regional basis IDA

Q2

31 Identify areas for further IFS related actions D/BEI

Q4

32 Monitor developments on capital markets

union D/FIN

Q2, Q4

33 Covered bonds environment in Ireland D/FIN

Q4

34 Ireland as a global location for private equity funds management

D/FIN

Q3

35 International Financial Institutions located in Ireland

D/FIN

Q4

36 Assess Ireland’s legislative framework for financial markets infrastructures to ensure it meets the needs of Irish market participants, consistent with EU law and sound financial regulation

D/FIN

Q3

37 Sustainable Nation Ireland will continue to focus on the further promotion and positioning of Ireland as an international hub for green finance, while raising awareness of

Sustainable Nation Ireland

Q2, Q4

14 | P a g e

this responsible and sustainable investment area

38 Aviation Leasing and Financing IAC

Q3

39 Maximise opportunities presented by ongoing global developments in front, middle and back office activities

IDA

Q4

40 Review the current status of market based financing with a workshop focused on opportunities for Alternative Credit Managers in the European market

IDA

Q1

Legend

Measure delayed Measure at risk of being delayedMeasure on trackMeasure Completed

15 | P a g e

Appendix 2 Glossary of Terms

BPFI Banking & Payments Federation Ireland

Comms Subgroup Communications Sub Group of the IFS2020 Public Sector Co-Ordination Group

D/ES Department of Education and Skills

D/FAT Department of Foreign Affairs and Trade

D/FIN Department of Finance

D/BEI Department of Business, Enterprise and Innovation (formerly Department of Jobs, Enterprise and Innovation)

D/TTAS Department of Transport, Tourism and Sport

DIMA Dublin International Insurance and Management Association

EI Enterprise Ireland

EFF European Financial Forum

FIBI Federation of International Banks in Ireland

FPAI FinTech & Payments Association of Ireland

FSI Financial Services Ireland

HLIC High Level Implementation Committee

IAC Industry Advisory Committee

IAIM Irish Association of Investment Managers

IFS International Financial Services

ISIF Ireland Strategic Investment Fund

NCADF National Civil Aviation Development Forum

PSCG Public Sector Co-ordination Group

SFI Science Foundation Ireland