The investment funds industry in Ireland, where more than 40% of alternative investment funds are serviced, is preparing to implement the Alternative Investment Fund Managers Directive (AIFMD) Level 2 measures, says the Irish Funds Industry Association (IFIA).
The Irish Qualifying Investor Fund (QIF) has been growing in recent years as investors turn to AIFMD-ready products. The number of QIFs has reached an all-time high of 1,622 with 201 billion in assets in 2012, an increase of 19% on 2011 and 35% on 2010, IFIA says. The QIF has requirements for an independent depositary and valuation and the delegated model of a self-managed fund.
All stakeholders have been working together to create the most suitable AIFMD environment for managers, says IFIA CEO Pat Lardner. Indeed, the Irish Government, through our Taoiseach [Irish Prime Minister] Enda Kenny, has publicly highlighted the importance of AIFMD to the industry. We are looking to implement the AIFMD in a thoughtful, pragmatic and measured way, easily meeting the required deadlines to give certainty and comfort to asset managers and investors.
The Irish funds industry is staying close to all key stakeholders as the practical implementation of AIFMD evolves; Ireland remains flexible and adaptable to whatever final form it may take.
The Central Bank of Ireland (CBI) recently released a public consultation proposing significant enhancements to its non-UCITS regime in preparation for the implementation of the AIFMD, with proposed amendments including the removal of the existing promoter regime and the removal of specific additional prime broker and counterparty credit rating requirements. The CBI also has consulted around the creation of a completely new fund product based on the minimum standard of the AIFMD and fully compliant with any relevant EU passporting rules.
Our experience over 25 years of pro-active client service and technical thought leadership means we have a can do attitude that has never been more important than today and the dynamic evolving regulatory landscape we are all working in, Lardner says.
Lardner also points to Irelands common law legal system with a broad and evolving range of legal structures including pending new structures, such as the iCAV, which will be attractive to U.S. investors; a new legislative basis for investment limited partnerships; its redomiciliation framework; and advantageous tax solutions for Irish funds and investors.
All these advantages combined mean that Ireland is increasingly attractive to alternative fund managers and the domicile of choice for domiciling AIFMD product as well as servicing non-European funds that are subject to some of the AIFMD requirements, Lardner says.
(CG)