Makhlouf sets resilience priorities for European funds sector
Speaking at the Irish Funds Annual Global Funds Conference on October 1, 2026, Central Bank of Ireland Governor Gabriel Makhlouf outlined strict resilience and governance priorities. He stressed that deeper capital markets and public trust are vital to retain European savings.
From liquidity shocks to empty shells
Addressing delegates in Dublin, Makhlouf called on the funds sector to tackle vulnerabilities in three core areas: market shocks, operations, and governance.
On shocks, he cautioned against complacency regarding liquidity management, valuation practices, and contingency planning.
On operational resilience, Makhlouf highlighted third-party concentration risks: “The next disruption will not wait for your operational resilience framework to mature.”
He called for board-level understanding of dependencies and tested exit strategies.
On governance, Makhlouf defended the European delegation model while demanding that firms maintain genuine substance and executive authority to override delegates.
Trust as European capital magnet
Makhlouf argued that integrated capital markets remain critical to retain European savings and finance broader economic growth.
Expanding retail participation and adopting financial technology must be accompanied by robust safeguards and clear product information.
“Capital goes where the opportunity is, and it stays where it is trusted,” Makhlouf stated.
He noted that long-term benefits depend on consumer literacy and regulatory standards.
Tough talk demands real penalties
Makhlouf pinpoints real operational vulnerabilities in third-party outsourcing and delegation frameworks.
Yet repeated warnings on governance mean little without binding supervisory penalties for hollow local substance.
Until enforcement matches the rhetoric, systemic operational risks will persist.