For over 30 years, Ireland has been a center for internationally distributed investment funds and securitisation structures. Ireland, as a jurisdiction, has historically coupled product and market innovation with strong investor protection measures.
Ireland is a popular domicile for both Undertakings for Collective Investment in Transferable Securities (UCITS) funds and Alternative Investments Funds (AIFs). Examples of sectors / assets classes that may avail of the Irish fund regime include Infrastructure Debt & Equity, Renewables, Food & Agriculture, Private Equity, Hedge Funds, Pharmaceutical and Intellectual Property, Non-Performing Loans and Loan origination.
While funds established in Ireland are subject to and compatible with the EU regulatory environment, they are created under a common law legal system. There are a variety of fund legal structures available. Irish funds include Unit Trusts, Investment Companies (PLCs), and Irish Collective Asset-management Vehicles (ICAVs). Irish “transparent” funds comprise Investment Limited Partnerships (ILPs) and Common Contractual Funds (CCFs).
Regulated funds authorized in Ireland operate within the scope of the EU regulatory environment. A major benefit of this is the single European passport for the management and marketing of these funds to investors throughout the EU (subject to satisfying the relevant regulatory requirements).
From an international standpoint, Ireland has signed Memoranda of Understanding with more than 40 countries and territories such as the United States, Switzerland, Japan, Germany, Dubai, China and Hong Kong, facilitating global fund distribution.
By regulating alternative fund managers rather than the funds themselves, the EU’s Alternative Investment Fund Managers Directive (AIFMD) has taken a radical new approach to investor protection.
This in turn has created new complexities, costs and considerations for those operating in this sector.
How KPMG can help
We can guide you through UCITS and AIFMD compliance issues. Feel free to get in touch with us to find out more on how our services can help your business.
Jorge Fernandez Revilla
Partner, Head of Asset Management
KPMG in Ireland