Macroprudential regulation of liquidity and leverage in the financial system has traditionally been limited to banking, but in recent years its scope has been widened - notably to the investment funds sector. There is a debate about the scope of this, and the nature of it, notably whether it should be simply supportive of good prudential practice, or more prescriptive. Pinsent Masons Ireland’s Conor Durkin puts the debate in perspective, examining the main issues that the Central Bank of Ireland is currently focussed on in its work in the area – liquidity management and leverage.