Aquest Podcast

On this episode of the Aquest Podcast I’m joined by Adrian Mulryan, CEO of Invesco Investment Management to talk about ETFs (mostly!). We begin by reflecting on the predictions made by Adrian the last time he came on the podcast in 2018. His predictions were pretty accurate, to be fair, and he wasn’t shy about reminding me either. We go on to chat about the continued growth of ETFs, both in terms of assets under management and product range. We take quite an in-depth look at ESG ETFs and how investors are driving strong inflows here. We also chat about product innovations, active ETFs and speculate on the tokenization of ETFs. Let’s see how accurate these predictions prove to be in 2029! Enjoy

It’s time to get techie on the Aquest Podcast and who better to guide us through the intersection of technology and financial services than Dáire Lawlor, MD at tech advisory firm Interwoven. We chart the growing use and integration of technology in financial services firms from the early 2000s (when tech integration was patchy at best) through the global financial crisis in 2008 (which brought a deluge of new reporting and compliance obligations) and up to DORA (the Digital Operational Resilience Act) which comes into effect on 17 Jan 2025. It’s a lot of ground to cover but it does help explain how we’ve arrived at DORA and what DORA is intended to achieve. We also chat about the types of challenges firms are facing when implementing DORA - particularly from a critical third-party service provider perspective. We conclude by considering the board’s role in governance and oversight of the use of ICT and the associated risks. Many thanks to Daire for sharing his insights on this episode. Enjoy!

In this ‘Director’s Chair’ episode of the Aquest Podcast I’m joined by Syl O’Byrne who has many years’ experience as a financial services lawyer, both in private practice and industry. We begin by chatting about Syl’s pathway to becoming an INED and his observations on the current funds landscape generally. We also chat about the impact of the Individual Accountability Framework from a director’s perspective and the balance between collective responsibility and individual accountability. We discuss the regulatory burden and barriers to entry and speculate about getting the cost/benefit balance right. We wrap up by discussing some of the specific topics on a director’s radar such as SFDR, DORA, valuations, outsourcing and governance. So it’s fair to say that there is plenty to occupy the minds of our INED community. Enjoy!

With the new EMIR REFIT (the revamp of the European Market Infrastructure Regulation) reporting requirements kicking-off on 29 April 2024, I’m joined by 2x EMIR REFIT experts to chat about what changes are being introduced and how firms are coping with implementation. Aoife Storey (Client Solutions Manager) and Gerard Gilsenan (Chief Revenue Office) of Fund Recs join me and share their insights and expertise on the challenges with implementing EMIR REFIT, emerging market practices and governance frameworks. We also chat about the importance of good quality data from a regulator’s perspective and how tech solutions can help firms manage oversight of enormous amounts of reported data. And we also have Aoife’s top tips for firms who are not there yet! Enjoy

In this episode of the Aquest Podcast I catch up with Ann Shiels, sustainability expert with Finlexsus. Ann appeared on the show in May 2022 and I was interested to get her take on developments in market practices and regulations on ESG in the interim. We chat about SFDR 1.5/2.0, the Corporate Sustainability Reporting Directive, the regulation of ESG rating agencies and the current Common Supervisory Action on SFDR compliance. We also discuss whether some of the steam has gone out of the ESG movement and whether the pending revision of SFDR is causing investor confusion leading to ESG fund outflows. So, in a nutshell, there has been plenty of activity in the ESG space since Ann last appeared on the Aquest Podcast in 2022!!

Impact of T+1 Settlement As firms in the US prepare for the momentous move to T+1 settlement in May 2024, I chat with Adrian Whelan, regulatory expert, about how this change will have a broad impact outside the US. With knowledge/appreciation of what's coming pretty patchy at best, we discuss the implications for firms on everything from fx to securities lending. We also chat about the steps that firms should be taking now to ensure that they are ready for T+1. We even contemplate T+0 and whether this is feasible and desirable in practice. Enjoy!

What are payment services? From time to time, I encounter firms where part of their business model involves receiving money from clients which the firm holds and later transmits to a third party. For me, this always begs the question 'Is this a payment service?' Sometimes it is and sometimes it isn't. But it is often a question which the firm has not thought to ask and one which they will need help with resolving if they are, however inadvertently, offering a payment service. In this episode, I'm joined by payments expert Ruairí deBurca to chat discuss the various types of activities which are regulated as payment services. We also discuss what firms can do if they are/would like to include a payment service as part of their customer offering. Enjoy!

Reducing Friction in the Payments Process When he was CEO of a communications business, Feargal Brady saw the inefficiencies in the current payments process first hand - and he vowed to do something about it! So, when he exited the communications industry, he entered the financial services world and set up payments firm - NoFrixion - whose mission is to rid the world of unnecessary hassle in the payments process. We chat about Feargal's experience of the Central Bank's authorisation process (mostly positive, by the way) and his hopes and ambitions for NoFrixion. We also discuss Feargal's thoughts on what the Irish financial services industry does well and not so well. Enjoy!

Recruiting in the Irish Financial Services Industry Like many sectors, the financial services industry is seeing great demand and competition for talent. In this episode of The Aquest Podcast, I chat with Jennifer Cahill, recruitment consultant, about what the landscape is like and how difficult it is in practice to recruit new staff. We discuss the steps that firms are taking to differentiate themselves and make themselves more attractive. We also chat about the Senior Executive Accountability Regime (SEAR) and the challenges of successfully completing the Central Bank's fitness and probity assessment. Enjoy!

MiCA and the future of Crypto Assets in EU After several years of drafting and refining, the Markets in Crypto Assets Regulation has been finalised and published. This game-changing piece of legislation will have a profound impact on crypto assets - and their service providers - in the EU. I'm joined by Andrew Tzialli, crypto asset legal expert, to chat about the final version of MiCA, the timelines for implementation and the steps firms need to start taking. We also chat about the crypto industry more generally and what the future may hold for this asset class in the EU. Enjoy!

A Digital Future for Funds In light of the Funds Sector 2030 Review, I am joined by Giles Swan, formerly UK FCA and ICI Global, as we contemplate what a bolder, more digital future for the funds industry might look like. What if funds issued tokens instead of units or shares? What if subscriptions and redemptions happened instantenously? What if UCITS rules were written into smart contracts so that the rules could never be broken? What if regulators had instant access to live data on portfolio holdings and investors? Find out what the future could hold in this episode of The Aquest Podcast. Enjoy!

Past, present and future of the Irish Funds Industry In the first episode of the Summer/Autumn 2023 season, I have a wide ranging discussion with Gerry Brady, INED and Elder Statesman (he said it was ok to call him that!) of the Irish Fund industry. We chat about the early days of the funds industry in Ireland and the tremendous efforts made collaboratively by industry and the public sector to establish and grow a funds industry here. We also discuss the current state of play and contemplate what the future might hold - both opportunities and challenges - in light of the current Funds Sector 2030 review. Enjoy!

Episode Notes In the first episode of our new season, I chat with Paul Price, founder and CEO of Haven Green Investment Management. Haven Green offers an outsourced distribution function with a focus on funds pursing a sustainable investments policy. We chat about how Paul's team identifies the boutique managers it wants to work with and how the trend towards sustainable investing is likely to evolve over the medium-term. We also discuss the outsourced distribution model and the fun/challenges in setting up your own investment firm! Enjoy!

Fresh from moderating a webinar on SFTF and EMIR data quality and oversight, Ciaran Walshe, COO of Fund Recs, joins me on this episode of The Aquest Podcast. We chat about the take-aways from the webinar, with particular attention on the messaging delivered by the Central Bank of Ireland that data quality and reporting oversight needs to continue improving. Plenty to mull over for already busy Manco boards...

We're back after a summer hiatus and crypto funds are on the agenda once again. This time, my guest is Daire Lawlor, MD at Interwoven, and we discuss the extent to which Irish regulated funds can invest in crypto currencies and digital assets. Our chat wanders into discussions about DLT, tokenisation and freedom with guardrails. Plenty to digest as we get our heads down for the run-in to year-end! Enjoy

Regulated crypto funds With investment in crypto continuing to generate investor interest (current market turmoil notwithstanding!), FS firms are exploring whether and how investment fund structures could be used to deliver exposure to crypto currencies. Leading the way when it comes to regulated crypto funds is Gibraltar. So I'm delighted to be joined by James Lasry, Funds and Crypto Lawyer at Hassans, to discuss how Gibraltar has approached the regulation and operation of crypto funds. With tons of insights and practical experience, James is a mine of information when it comes to regulated crypto funds. Enjoy!

Sustainability With sustainability and ESG being on everyone's lips, not just in the financial services industry, I thought it would be interesting to chat with Ann Shiels, a sustainability expert with Finlexsus. We chat the compliance challenges facing FS firms as they navigate the management of investment products with a wave of regulatory deadlines on the horizon. But more than that, I was interested to learn more about how firms in the FS industry, including professional services firms, are tacking sustainability within their own businesses. What are the challenges and how are firms innovating? Do potential recruits (millennials!) and clients really care about a firm's sustainability credentials? Find out in this episode as Ann shares her insights on sustainability trends in the current marketplace. Enjoy!

Continuing on the theme from the last episode of The Aquest Podcast, I'm joined by Brian Sanya Mondoh to chat about the digital revolution and its impact on financial services in particular. I learn about how smart contracts, blockchain and Decentralised Autonomous Organisations (DAOs) are likely to shape our world over the short-to-medium term. But we begin by chatting about life in Brian's home country of Trindad and Tobago! Enjoy. Many thanks to Catherine Monahan who edited this podcast.

Blockchain expert Mauricio Magaldi of 11FS joins me for this episode of The Aquest Podcast to chat about blockchain and the financial services industry. We discuss current use cases and ponder how regulators could best adapt to the blockchain revolution. We also speak about Tradfi and contemplate the challenges and opportunities that DeFi and blockchain bring. Enjoy!

Episode Notes Introduced in 2015 with the objective of increasing alternative sources of funding for European capital markets, the European Long-Term Investment Fund (ELTIF) regime has failed to gain any real traction. Why is this? And what can be done to fix it? In this episode of The Aquest Podcast, I'm joined by Ken Owens of PwC to mull over the problem with ELTIFs and discuss what could be done to make them attractive to investors.