Setting up in Ireland
With over 20 years’ experience in the domiciling and servicing of internationally distributed investment funds, Ireland has become a leading centre of excellence and remains at the cutting edge of market developments.
That’s why close to 900 fund promoters have chosen Ireland as the location from which to service assets worth over €2.5 trillion.
As a regulated centre for investment funds in which it is easy to do business, Ireland offers many advantages for international fund promoters:
- Scale – 44 fund service providers, over 12,000 employees, 1over 13,000 funds and €2.5 trillion in assets, representing 107% growth since 2009
- No. 1 for hedge funds – Ireland is the world’s leading centre for the administration of hedge funds, servicing over 40 per cent of global hedge fund assets
- Major UCITS centre – 80 per cent of Irish domiciled fund assets are held in cross-border UCITS
- Global distribution – Irish domiciled funds are sold in over 70 countries worldwide
- Regulatory framework – Ireland has a robust and efficient regulatory framework for investment funds with clear process and certain timeframes combined with a wide range of investment structures
- Tax framework – Ireland offers a highly efficient, clear and certain tax environment for investment funds with a 12.5% corporate tax rate for management companies and no taxes on funds or non-resident investors
- Expertise – Ireland offers unrivalled specialist expertise in fund structuring, domiciling and administration, form ‘long only’ to highly complex investment strategies
- Government support – The investment funds industry has always enjoyed full political support since the establishment of the International Financial Services Centre (IFSC) in 1987. Many measures have been taken over the years to enhance the competitiveness of Ireland as a fund domicile.
What does it involve?
Ireland offers a range of fund structures to suit every requirement. The first step is to decide on the regulatory status of the fund (UCITS or AIF) which will depend on factors such as the investment strategy, investor base (retail or sophisticated) and distribution requirements.
UCITS (Undertakings for Collective Investment in Transferable Securities) are a European retail fund product offering a high level of investor protection and are also frequently used to distribute to institutional investors.
Alternative Investment Funds (AIF) are authorised under the Alternative Investment Fund Managers Directive (AIFMD) to meet EU regulatory requirements. The Irish Qualifying Investor AIF is a popular choice for managers seeking greater investment flexibility in a regulated framework.
The fund approval is a two-stage process in which the promoter/investment manager is firstly approved, followed by approval of the fund itself and the arrangements with the various service providers, such as the depositary and fund administrator. The management entity must also meet capital, organisational and operational requirements and appoint at least two Irish resident directors. A fund can typically be approved within 6 to 8 weeks.
How can we help?
We combine dedicated project management, regulatory, tax and operational expertise with knowledge of the local industry to deliver a complete solution.
Deloitte can take on the project management of your fund set-up and provide dedicated support as required. Partnering with Deloitte to manage the set-up of your fund will minimise the risk, effort and cost to your business.
We can conduct a preliminary analysis to identify the best fit structure for your business, taking into account:
- Costs associated with set up and ongoing operations
- Legal, regulatory and tax considerations
- Operational and control considerations
- Distribution requirements
Deloitte can manage the RFP and selection process of service providers on your behalf. We can carry out a detailed review of the market and comparative analysis, taking into account the fund’s specific needs.
We can project manage the launch of your fund, including all aspects of the fund incorporation, regulatory approval and appointment of service providers as appropriate. We will coordinate with the selected legal advisers as necessary to execute on each of these points, from start to finish.