Funds lobby backs new rules to lure more asset managers
Tuesday December 22 2009
THE Irish Funds Industry Association (IFIA) yesterday welcomed new legislation passed by the Dail aimed at luring investment funds to Ireland by simplifying the move from off-shore tax havens such as the Cayman Islands.
The Government and the Irish stock exchange have identified the funds industry as one of the few growth areas in the financial services sector.
Companies based here currently administer more than 10,000 funds, representing €1,300bn of assets under management, making Ireland the third largest centre of fund administration in the European Union after Luxembourg and France.
Clampdown
The legislation was drawn up in the hope that a clampdown on tax havens by big countries will force many hedge funds to move from places like the Cayman Islands to countries like Ireland which are regulated by EU rules.
The new law specifically allows companies registered in the Cayman Islands, the British Virgin Islands, the UK Channel Islands and certain other jurisdictions to re-register as Irish companies.
"Ireland has always offered significant advantages for asset managers seeking a regulated jurisdiction for their funds," IFIA chairman Michael Jackson said yesterday.
"Now with further enhancement, through efficiencies to legal framework, Ireland is continuing to add to its reputation as the place 'to do business' for the international funds industry."
The legislation was contained in an amendment to the Companies (Miscellaneous Provisions) Bill 2009 which contains several other provisions aimed at making it simpler for foreign companies to operate in Ireland.
Other sections of the act allow companies to file accounts using accounting procedures common in other countries.
Regulated
Central Bank governor Patrick Honohan warned TDs and senators last week that the activities of IFSC-based companies needed to be regulated more carefully and said there could still be "unexploded bombs" among the companies doing business here.
The new legislation allows a fund to move here following a single meeting of shareholders in the jurisdiction from which the fund is seeking to move; and a single filing of registration documentation with the Companies Registration Office in Carlow to include a statutory declaration from a director of the company.
The simplified process will reduce the burden and cost of re-domiciling by eliminating unnecessary shareholder meetings, notary declarations, certificates and reports, the IFIA said yesterday.
The legislation was prepared by the Department of Finance, the Department of Enterprise, Trade and Employment, the Financial Regulator, the Companies Registration Office and the Revenue Commissioners.
- Thomas Molloy
Irish Independent
