Ireland the jurisdiction of choice for global fund managers

By: Colin Keane

Global fund managers consider Ireland their domicile of choice; since 2012, the assets serviced in Ireland have doubled. 18 of the top 20 global asset managers have Irish funds, and over 800 fund managers across 50 countries are being serviced in Ireland. It is no surprise that Ireland is quickly being recognized as the domicile of choice for investment funds. 

Let’s look at some of the reasons Ireland is now the domicile of choice for global fund managers:

1. The EU passport allows for seamless connectivity to European investors

  • With the planned abolishment of the national private placement regime in 2018, more non-EU managers are marketing their funds through Irish AIFs and UCITS-compliant vehicles.
  • Irish funds registered for sale across Europe and the EEA have doubled over the past 3 years, with institutional investors from Germany, the UK, France, Switzerland, and the Netherlands driving the demand.
  • Post-Brexit, Ireland will continue to strongly emphasize its UK relationship; focus areas such as a cooperation agreement with the FCA as a 3rd country regulator under AIFMD are being discussed and encouraged. Consultation Paper 86 (which focuses on AIFM governance) broadens certain requirements to be performed within the EEA, as opposed to the EU.

2. The Irish Collective Investment Asset Management Vehicle (ICAV)

  • A tailor-made corporate fund vehicle for UCITS and AIFs, ICAV provides the ability to elect ‘check the box’ classification for U.S. investors

3. Special purpose vehicles

  • Ireland is the jurisdiction of choice for the establishment of special purpose vehicles (s110’s/ DACs) for ABS, CAT bond, CDO, CLO, commercial paper, distressed debt, securitization, U.S. life settlements, and other structured finance transactions.

4. Tax advantages

  • Ireland has tax treaties with more than 70 countries.
  • Non-Irish investors are not subject to Irish tax and do not incur any withholding taxes on payments from the fund.
  • Ireland has an Intergovernmental Agreement (IGA) with the U.S. regarding the implementation of FATCA.
  • Ireland was one of the first jurisdictions to adopt the OECD’s Common Reporting Standard (CRS) regime.

What managers need to consider

Technology and regulation have shifted the fund administration landscape. Can your administrator deliver and tailor a top-tier service as your requirements change?

SS&C Ireland specializes in several areas, including traditional and alternative UCITS, hedge, credit hybrids, and private equity. We expertly and seamlessly adapt to our clients’ needs and our proprietary technology and global footprint ensure our clients receive the same premium service across multiple jurisdictions.

To learn how we can help you, contact Alex Kirkpatrick on akirkpatrick@sscinc.com or +44 (0)20 3310 3148.