including cost control ) ; and 3. entrust oversight of their investments to a professional investment manager. significantly, in terms of facilitating better outcomes for investors, an investment fund allows an investor to participate in a diversified portfolio of holdings with a view to mitigating concentration risk. we are reminded once more unity creates strength. on a broader, system level basis, the sector has an important role to play in reducing the reliance on the banking sector. i have spoken about this on previous occasions so will not dwell on it today. 4 however, traditional forms of finance, including bank funding, imposes certain costs and can lead to fragilities where an economy is overly dependent on it. on a sectoral basis, we know that the funds sector has generally demonstrated high levels of resilience, even during periods of stress such as the covid market shock. nevertheless, we of course must be mindful that an expanding and more interconnected financial sector may pose risks that need to be managed. 2 / 6 bis - central bankers'speeches we must also be alert to the risks from frauds and scams. we are all aware of the emergence of increasingly sophisticated scams targeting retail investors. in ireland, the gardaa recorded that fraud incidents increased by 95 % between 2019 and 2022, with the investment fraud element increasing by 358 % during that period. 5 this is a risk to each customer but also an issue of trust and confidence. conscious of this growing risk the central bank has recently announced that the first theme of our new innovation sandbox programme will be'combatting financial crime '. we will be looking at what technological solutions can help to deliver positive outcomes for consumers and firms in this area. we are equally conscious that the solutions to this issue do not lie solely within the financial sector. this is why we have been engaging with a number of large tech firms since the start of the year, including google, encouraging them to do more to ensure they are not facilitating consumer harm. i am pleased that progress has been made in this regard and welcome google's announcement that they will introduce a verification process for financial services advertisers. an effective financial services verification policy is a key disruptive tool in the fight against online financial scams. how do we respond to these challenges? at the central bank of ireland, core to informing our approach to respond to these challenges, is to take a broader perspective. we must consider the views of retail investors and how the asset management

regulator has clearly defined responsibilities and decision - making powers of its own. it is now responsible for the regulation of all financial services firms in ireland. it also has greatly enhanced functions when it comes to consumer protection and consumer education. these regulatory powers and functions are exercised independently of the central bank. there is a wide range of additional enforcement powers being assigned to the financial services regulator under the central bank and financial services authority of ireland bill, 2003. these additional powers, i know, are very much welcomed by the financial services regulator and i believe they are both appropriate and timely. there is now a new focus on financial regulation and this includes, in particular, more emphasis on the consumer. there is also growing recognition internationally of the desirability of all financial institutions being supervised by a single regulator as is now the case in ireland. the financial services regulator has as its focus the protection of consumers by helping them to make more informed decisions in a safe and fair market and to foster sound dynamic financial institutions. the central bank ’ s statutory responsibility in this regard relates to the stability of the overall financial system and not individual institutions. we have a common interest in the stability and solvency of the financial sector and the protection of the interests of the consumers. in discharging this function we aim to promote a vibrant financial services industry that can continue to prosper in a very competitive international environment. financial stability some concerns were expressed before the current arrangements were put in place that, somehow, the financial services regulator might not be fully independent of the central bank. i can assure the committee that this is not the case. the central bank ’ s role relates only to the stability of the overall financial system. this year, we will publish a stand - alone financial stability report outlining the extensive work being undertaken by the bank on financial stability. financial stability work includes the development of various early warning indicators of systemic risks. these are events that could spread from one institution to another giving rise to serious problems in the financial system and the economy more generally. the work also includes the procedures required in the event of a systemic emergency. the reason for the strong focus on financial stability is that financial crises are very costly, not alone in financial but also in economic terms. many countries have experienced crises that seriously impacted on economic growth - in some cases, 10 % or more of gnp. on an international comparison, ireland ’ s financial stability record has been very good. it is worth noting that in discharging its financial stability role