Makhlouf warns funds on cloud reliance and governance substance
Central Bank of Ireland Governor Gabriel Makhlouf called on the funds sector to reinforce operational resilience and ensure genuine governance substance. Speaking in Dublin on October 1, 2026, he noted that Ireland hosts €5.6 trillion in investment fund assets.
Capital follows trust and opportunity
Central Bank of Ireland Governor Gabriel Makhlouf emphasized Ireland’s position as Europe’s second-largest fund domicile, hosting €5.6 trillion in assets.
Speaking at the Irish Funds conference, Makhlouf noted that “capital goes where the opportunity is, and it stays where it is trusted.”
He identified tokenisation as a transformative shift, noting the Eurosystem now allows DLT platform transactions to settle in central bank money.
Unlocking tokenisation requires ecosystem-wide adoption of both assets and money, paired with risk management.
Furthermore, with only around a fifth of euro area household wealth held in financial assets, expanding retail participation represents a key growth channel.
Scrutiny on delegates and cloud providers
Makhlouf outlined three pillars of sector stability: shock absorption, operational resilience, and governance.
Following liquidity consultations in money market funds, he warned against complacency and urged firms to address concentration risks in third-party cloud and data providers.
On governance, Makhlouf confirmed support for cross-border delegation while demanding genuine local decision-making capacity, announcing an upcoming consultation on fund management company rules.
Substance over hollow shells
Makhlouf rightly identifies third-party tech concentration as an acute systemic threat to the fund industry.
The demand for genuine governance substance puts empty-shell delegation models on notice across Europe.
Rhetoric on innovation will mean little if fund managers fail to fix these core operational weaknesses.