i want to mention two : the uk ’ s departure from the eu and market - based finance. the uk ’ s departure from the eu following the uk ’ s exit from the eu on 31 january 2020, negotiations are currently underway to try and conclude a free trade agreement ( fta ) between the parties before the end of 2020. if there is no agreement on a new fta and no extension of the current transition period then the eu and uk could move to trading on wto terms from january 2021. in previous analysis, the 3 / 6 bis central bankers'speeches central bank has discussed the risks to the economy from future potential post - brexit trade arrangements. 3 given the extensive linkages between ireland and the uk, the uk ’ s withdrawal from the eu will affect the irish economy through a range of channels. with the uk exiting the eu customs union and single market, trade between ireland and the uk will not be as frictionless as today. and while the successful conclusion of an fta could eliminate tariffs on most eu - uk trade, other frictions would arise that would make trade in both goods and services more cumbersome. these non - tariff barriers include the possible need to manage new import and export formalities, including customs and security declarations. trade in agri - food products – particularly important in an irish context – could also be subject to new additional checks and inspections. in the case of a wto arrangement these effects on trade would be compounded by the imposition of tariffs. it is important to note that new tariff and nontariff barriers would negatively affect both importing and exporting. over 20 per cent of imports of irish - owned firms are either completely or very highly reliant on imports coming from the uk, the majority of these imports are intermediate inputs used for further production in ireland. 4 ( figure 8 : effects of different uk withdrawal scenarios on irish output ) in addition to disruption to trade flows, the uk ’ s departure from the eu could affect the economy through other channels. in the short - run, the ongoing uncertainty over nature of the uk ’ s future relationship with the eu after the transition period could cause firms to delay investment spending. heightened uncertainty could weigh on sentiment more generally, dampening spending by households. exchange rates and financial markets could also be affected. in the long - run, the uk ’ s departure is expected to have negative effects on the uk economy through lower productivity and weaker investment. slower uk growth arising from

from a sponsor is implicit it should be made explicit, though it is worth acknowledging that this may have implications for the capital requirements of the sponsor. whatever the detail of the reforms for money market funds, change is coming and it will be significant. as i said, my key message is to engage in the debate and be prepared to adapt. conclusion the more than 1. 3 million investors who rely on the irish fund sector highlight the need for robust standards of investor protection in our market. funds may be different from other financial services sectors, but it is still vitally important to get the right regulatory framework in place so that investor protection is assured. this will improve the reputation of ireland as an international financial services sector and support the success of the funds industry. there is an opportunity to re - examine the different elements of that regulatory framework for investor protection : the standards in place at a european level and domestic level, the processes the central bank uses to authorise new funds, the supervisory framework applied to the sector, and the emerging standards relating to shadow banking. bis central bankers ’ speeches as i have explained, the central bank is committed to a level of high engagement with europe in crafting that framework – and to rigorously reassessing our domestic framework, processes and supervisory approach. we would encourage ifia and the irish fund sector to play its part in this process by contributing to the regulatory dialogue at the european and irish level, by offering constructive ideas to address the changing regulatory priorities of the post financial crisis world, and by maintaining high standards of practice in the irish market that ensure a continued reputation for high standards of investor protection. bis central bankers ’ speeches