The Investment Funds, Companies and Miscellaneous Provisions Act 2005 was signed into law on the June 30, 2005, in Ireland, according to the Dublin Funds Industry Association (DFIA). The Act paves the way for the next generation of business in the international funds industry in Ireland and adds to the attractiveness of the jurisdiction as a domicile of choice for investment funds.
The Act includes three provisions: first, it provides the general legal framework for the dedicated asset pooling structure the Common Contractual Fund (CCF) providing for a new investment vehicle–the non-UCITS CCF; secondly, it introduces segregated liability at sub fund level for investment companies and thirdly, it provides for the cross investment between sub-funds of investment companies.
In addition, a further provision was included at committee stage, to permit Irish Collective Investment Schemes the flexibility to prepare their financial statements under ‘appropriate’ accounting standards. The accounting standards included are; Irish, UK, Japanese, US, Canadian GAAP and/or IFRS.
Commenting on the commencement of the Act, Liam Manahan, Managing Director of Bank of Ireland Securities Services and Chairman of the DFIA, said, “This is a very positive and welcome piece of legislation, it enables the industry to offer our clients an enhanced suite of products and keeps Ireland to the fore of the global funds industry as the domicile of choice for investment funds.” He continued, “We welcome the inclusion of the provision on financial statements, as it acknowledges the international nature of these investment vehicles and is further evidence of the benefit of the partnership approach between the industry and authorities working together to make the jurisdiction as flexible and progressive as possible while at the same time ensuring proper controls are in place.”
At the announcement of the signing into law of the Act, Minister for Trade and Commerce, Michael Ahern, TD, said “These changes will make Ireland a more attractive location for the establishment of investment funds, thereby increasing our competitiveness in the area.
“T he funds industry has played a crucial role in contributing to the growth of the financial services sector and this Act is further evidence of this Government’s commitment to providing the industry with the supports it needs to continue in that role,” he added.