to seek the pot of gold at the end of the rainbow that is in the level playing field. i will return to this 3 / 6 bis central bankers'speeches topic shortly when considering brexit. european regulatory developments, including capital markets union ( cmu ) i will turn now to the regulatory developments that are most relevant to today ’ s agenda. cmu is an important response to the challenge of achieving more diversified sources of funding of the european economy, wider opportunities for investors, and broader risk sharing. the objective to diversify the funding mix, reducing reliance on traditional funding models, is a valuable one. the recently proposed revision of the esa ’ s 8 framework is also noteworthy. the central bank is examining the package of proposed changes with a view to providing advice and technical support to the government as it engages in the legislative negotiations, considering, inter alia : 1. how it addresses problems in the functioning of europe ’ s capital markets ; 2. whether it will improve the position of potential investors and those seeking to obtain funding ; and 3. its consistency in the allocation of powers on the one hand and accountabilities on the other. negotiations are continuing under the estonian presidency on the european commission ’ s risk reduction measures package9. this package constitutes the eu ’ s completion of the basel iii and fsb reform agenda and revises parts of the crd / crr10 and brrd11 frameworks. the central bank strongly supports these and other aspects of the proposals as necessary to further the completion of the package of post - crisis regulatory reforms. for example, the proposal for the ssm to take on responsibility for the supervision of large investment firms is eminently sensible. however, i do have concerns about certain other aspects of the proposed package. for example, i do not think the proposal for capital waivers for subsidiaries within the banking union is appropriate at this time, given the current realities in the case of bank failure, which retain a significant national dimension. mifid ii mifid ii represents the most substantial overhaul of eu legislation for markets in financial instruments in more than a decade. both mifid ii and mifir12 seek to achieve more stable, transparent financial markets to protect investors and to improve client outcomes. it will have a sizeable impact on the asset management industry, which must be ready to adapt. the ‘ go live ’ date of 3 january 2018 is fast approaching and we expect firms to be ready. mifid ii contains new eu -

well, is wellmanaged and well - regulated and it serves the needs of the economy and its customers over the long term. this is in all our interests. i thank you for your attention. 1 single supervisory mechanism - the single supervisory mechanism ( ssm ) refers to the system of banking supervision in europe. it comprises the ecb and the national supervisory authorities 2 see, for example, elderfield, matthew address to the irish insurance federation 3 the probability risk and impact systemtm ( prismtm ) is the central bank ’ s risk - based framework for the supervision of regulated firms. it supports our challenging firms, judging the risks they pose to the economy and the consumer and mitigating those risks we judge to be unacceptable. see www. centralbank. ie / regulation / how - we - regulate / supervision / prism 4 www. imf. org / en / publications / gfsr / issues / 2017 / 09 / 27 / global - financial - stability - report - october - 2017 5 markets in financial instruments directive - see " mifid ii – are you ready? ” address by denise murray head of asset management : authorisations and inspections, june 2017. 6 payment services directive 7 rethinking financial stability, 12 october 2017 8 on 20 september 2017, the european commission put forward a series of proposed changes to the mandates, governance, and funding of the three esas, see europa. eu / rapid / press - release _ ip - 17 - 3308 _ en. htm 9 see, for example, europa. eu / rapid / press - release _ ip - 17 - 3721 _ en. htm 10 capital requirements directive and regulation 11 bank recovery and resolutions directive 12 markets in financial instruments regulation 13 sibley, ed. non - performing loans : the irish perspective on a european problem 14 this time is different : eight centuries of financial folly, by carmen m. reinhart and kenneth s. rogoff 6 / 6 bis central bankers'speeches