Ireland’s financial sector has received a much-needed boost by the entrant of a new range of investment funds worth €90bn, which is likely to create a large number of jobs. However, one industry body suggest competition could get a lot stiffer for the industry.

Source UK, a joint venture between Goldman Sachs, Morgan Stanley and Bank of America/Merrill Lynch, has unveiled plans to domicile a new range of funds in Ireland. These include 13 exchange-traded funds and 22 exchange-traded commodity products, worth some €90bn.

Bank of Ireland Securities Services (BOISS) is acting as the administrator and custodian of the funds.

And the good news is that, according to Fearghal Woods, director of business and product development at the firm, this has already created some jobs and could mean “a lot” more going forward if Source UK’s distribution plans come to fruition.

However, figures from the Investment Management Association (IMA) suggested that a tax changes announced in last week’s UK budget could pose a threat to off-shore centres like Dublin.

UK fund houses sponsor €443bn in Luxembourg and Ireland, according to IMA estimations, with a large number of London-based houses setting up Dublin operations. The new favourable tax regime, coupled with a strong regulatory system, could lure them back.

“It has been absolutely clear for the last few years the UK has not been in the running. Now it is back in the running,” says Julie Patterson, director of authorised funds and tax at the IMA.

Seán Páircéir, chairman of the Irish Funds Industry Association, was quick to brush off these claims though. He told the Financial Times:

“We do not view this as a substantial threat to domiciling in Dublin and Luxembourg. If tax was the single motivating factor it would be fair to say there is a levelling to some degree, but tax has never been the only factor. I don’t think there is anybody running through the streets weeping.”