274. Deputy Edward Timmins asked the Tánaiste and Minister for Finance the reason the physical trading and custody of precious metals in Ireland remains outside the direct regulatory remit of the Central Bank despite an industry estimated to manage between €500 million and €1 billion in client assets [49436/26]

The activities that come within scope of the Central Bank’s regulatory remit are set down in domestic and EU legislation covering the regulation of financial services. The activity referred to in the Deputy’s question does not fall within the Central Bank’s regulatory remit as commodities are not a financial instrument as defined in the MiFID II framework.

The MiFID II framework applies to investment services provided in respect of financial instruments. Physical commodities, including precious metals, are not financial instruments for the purposes of MiFID II and accordingly, the physical trading or custody of precious metals does not constitute a regulated financial service.

The Central Bank’s Consumer Protection Code 2025 (the Code) applies to the regulated activities of regulated entities operating in the State, including financial services providers authorised, registered or licensed by the Central Bank and financial services providers authorised, registered or licensed in another EU or EEA Member State when providing services in this State on a branch or cross-border basis. The physical trading or custody of precious metals is not a regulated activity for the purposes of the Code and therefore falls outside its scope.

Similarly, the Central Bank’s Client Asset Requirements apply only where an authorised regulated financial service provider receives or holds client funds or client financial instruments on behalf of clients in connection with the provision of regulated financial services. They do not establish a standalone regulatory regime governing the custody of physical commodities or other non-financial assets.

If there is a concern regarding the conduct of an unauthorised firm or a firm that is suspected to be engaged in the provision of financial services without the appropriate authorisation, this can be reported to the Central Bank at www.centralbank.ie/regulation/how-we-regulate/authorisation/unauthorised-firms.