By Conor Meehan, Managing Director, Fund Solutions (Ireland)
From Brexit and anti-money laundering to CP86, the latest Funds Europe report looks at key issues and trends affecting Ireland’s funds industry.
Conor Meehan, Managing Director of Fund Solutions (Ireland), Link Group, featured in the report alongside other local leaders for a roundtable: Lisa Kealy from Irish Funds Council and EY, James McEvoy from Alter Domus and Colm Callaly from Amundi.
The roundtable discussed key market issues and trends – from the Irish Limited Partnership (ILP) Act and Brexit to anti-money laundering (AML) and CP86.
Here are some of the key themes…
The Irish Limited Partnership Act
- Popular partnership vehicles elsewhere that the ILP has been modelled on for a fit-for-purpose regime
- The rising number of the world’s AIFs assets administered in Ireland (40% at present)
- Ireland’s position as a green financing centre for renewable energy
- The ability to operate umbrella funds with an ILP
- Could asset managers in other common law countries be interested in the Irish ILP product?
- Challenges and complexities in establishing beneficial ownership for certain structures
- Discussion on an equal playing field across jurisdictions with regards AML
- The role of the fund administrator in AML
- Impacts of Brexit on Irish Master/Feeder structures plus investment and borrowing restrictions for Fund of Funds with UK fund holdings
- Ireland’s increasing talent pool with 45 asset managers establishing presence since 2016
- Is the Central Bank of Ireland is ensuring the ManCo model is still fit-for-purpose? Are they delving into fund managers set up in a post-Brexit world?
- Will we look back and see the guidance as positive?
Independent Management Companies
- The high standards that enable ManCos to independently review performance and risk reporting, and challenge the investment manager
- The Designated Person and transferability of talent with Ireland
What’s the next focus?
- Technology and data
- A focus on costs and fees at the funds level
- The opportunity for Ireland to be a European leader in ESG funds