Ireland has become recognised as one of the favoured domiciles for fund managers that wish to distribute into the European Union. With the advent of Brexit, it is also starting to look more attractive for UK fund managers, as well as non-European fund managers who want to take their first steps into the European market.
A mature UCITS and AIFMD funds jurisdiction for cross-border fund marketing
Ireland can be used for funds that launch under the two main European passporting directives, namely UCITS (Undertakings for Collective Investments in Transferable Securities) and AIFMD (the Alternative Investment Fund Managers Directive).
Ireland is known to be a mature, and well-regulated financial services jurisdiction. It has developed over 25 years and is the home of funds advised by more than 1000 different managers. It has a highly respected regulator, in the form of the Central Bank of Ireland.
Sophisticated regulatory oversight counts with investors
The CBI is well-versed in overseeing a wide range of different fund structures and investment strategies, and less likely to be fazed by something new than some other jurisdictions. It also has credibility with investors. The regulatory framework already in place in Ireland is considered robust: it has highly developed legislation governing counterparty risk and prospectuses. It also requires independent service providers for a fund – e.g. administrators and an independent depositary.
Setting up a fund in Ireland also provides you with access to a much wider potential market than simply the EU: we know of over 90 markets in which Irish funds are currently sold.
A leading ETF fund jurisdiction in Europe
Ireland is worth a close look for fund managers looking to establish both UCITS and AIFs. We have also seen it used by managers of ETFs. It is estimated that some 42% of the European ETF market is currently using Ireland as a fund domicile.
Another advantage offered by Ireland is the broad range of available service providers for a fund manager to choose from. This can be critical for early stage fund managers who want as much choice as possible. We already work with a number of leading service providers in Ireland and have good connections with many more of the high-quality providers, including fund administrators, law firms, accountants and management companies.
With over 16,000 local personnel employed in the Irish fund services sector, Ireland is well placed to meet many of the requirements of asset managers who are taking a serious look at international fund distribution outside of their home market. This includes professionals who are used to dealing with alternative investment funds like hedge funds and private equity vehicles.
Hawksmoor Partners can provide independent advice on setting up and structuring investment vehicles in a broad range of fund jurisdictions, including Ireland. We have worked on numerous fund launches over the years and have a wide network of contacts within the fund services industry.
For more information on our fund structuring services and setting up funds and other investment vehicles, please contact Stuart Fieldhouse – firstname.lastname@example.org