The Hedgeweek Guide To Setting Up Alternative Investment Funds 2011

Profession:Dillon Eustace
 
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FUND LEGISLATION

UCITS: European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 Non-UCITS investment companies: Part XIII of the Companies Act, 1990 Non-UCITS unit trust: Unit Trusts Act, 1990 Investment Limited Partnerships (non-UCITS): Investment Limited Partnerships Act, 1994 Non-UCITS common contractual funds: Investment Funds, Companies and Miscellaneous Provisions Act, 2005 NUMBER OF FUNDS

4,4,864 Irish regulated funds as of 30 April 2011 (source: Central Bank) 6,264 non-Irish funds administered in Ireland as of 31 December 2010 (source: Irish Funds Industry Association) NUMBER OF FUNDS BY CATEGORY

All data as of 30 April 2011 and includes sub-funds (source: Central Bank)

UCITS.......................................................................................2,999

Non-UCITS.............................................................................. 1,862

Retail Non-UCITS.....................................................................399

Professional Investor Non-UCITS........................................205

Qualifying Investor Non-UCITS.......................................... 1,258

Domiciled and administered fund assets total:

The latest available data is as of February, 2011 shows that there were E1,886 billion in total net assets in funds administered in Ireland, comprising both Irish and non- Irish funds (source: Irish Funds Industry Association).

As of February, 2011 there were approximately E971 billion in total net assets in funds domiciled in Ireland (source: Irish Funds Industry

Association).

Domiciled and administered fund assets by category:

All data as of 31 December 2010 (source: Central Bank of Ireland)

Money Market:......................................................... E357 billion

Bonds:..........................................................................E172 billion

Equities:...................................................................... E263 billion

Hedge:...........................................................................E56 billion

Other:...........................................................................E114 billion

The numbers of Irish registered funds by regulatory category are provided above. The variation between the Central Bank of Ireland aggregate total assets figure and the total net asset value figure of the Central Bank as stated above is due to rounding and other factors.

There are no up-to-date official statistics available on the categories of non-Irish funds administered in Ireland as such.

REGULATOR

The Central Bank of Ireland (commonly known as the "Central Bank").

Address: Financial Institutions and Funds Authorisation, Central Bank of Ireland, Block D Iveagh Court, Harcourt Road, Dublin 2, Ireland

SERVICE PROVIDERS

There are a large number of law-firms which provide legal services to the alternative investment funds industry here, both the leading commercial firms and smaller niche practices.

All of the main accountancy firms have large operations here.

There are approximately 50 fund administrators active in Ireland, many of which have affiliated custodian operations in Ireland, the majority of which would have alternative investment fund servicing capabilities.

There are no available statistics on Irish corporate service providers as generally these entities may not be required to be regulated in Ireland. Generally, fund administrators or specialised transfer agency companies would provide those services normally provided by corporate services provides, excluding company secretarial services which are also provided by corporate secretarial affiliates of the law-firms or certain independent firms.

Investment banks involved in prime brokerage do not typically provide this service out of Ireland. Over 321 fund promoters have Irish domiciled funds as part of their distribution strategy

There are no official statistics on the number of placement agents in Ireland.

Local stock exchange: The Irish Stock Exchange Limited

Local fund industry body: Irish Funds Industry Association

Promotion agency for funds/financial sector: Industrial Development Agency and Irish Funds Industry Association

DOUBLE TAXATION TREATIES

Ireland has signed comprehensive double taxation treaties with 63 countries, of which 55 are currently in effect. The double taxation agreements which are currently in effect and having force of law cover the following countries: Australia, Austria, Bahrain, Belarus, Belgium, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Israel, Italy, Japan, Republic of Korea, Latvia, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Netherlands, New Zealand, Norway, Pakistan, Poland, Portugal, Romania, Russia, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Republic of Turkey, United Kingdom, United States, Vietnam and Zambia.

Ireland has also signed double taxation treaties with the following countries and the legal procedures to give these agreements force of law are at various stages: Albania, Armenia, Bosnia & Herzegovina, Hong Kong, Kuwait, Montenegro, Morocco, and United Arab Emirates.

Negotiations for new agreements with Panama, Saudi Arabia, Thailand and Uzbekistan have been concluded and are expected to be signed shortly. In addition negotiations for new agreements with the following countries are at various stages: Argentina, Azerbaijan, Egypt, Tunisia and Ukraine.

TAX INFORMATION EXCHANGE AGREEMENTS

Ireland has concluded Tax Information Exchange Agreements (TIEAs) and Agreements for affording relief from double taxation with respect to certain income of individuals and establishing mutual agreement procedures in connection with the adjustment of profits of associated enterprises with Guernsey, the Isle of Man and Jersey.

Ireland has also concluded Tax Information Exchange Agreements (TIEAs) with Anguilla, Antigua and Barbuda, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Cook Islands, Gibraltar, Liechtenstein, the Marshall Islands, Samoa, St Lucia, St. Vincent & the Grenadines and the Turks & Caicos Islands.

In addition, Ireland has been designated by the Cayman Islands as a country that may make requests for tax information under Part IV of the Tax Information Authority Law. This allows the Revenue Commissioners to request information relevant to a tax investigation (including bank and entity ownership information) from the Cayman Islands authorities without the necessity of a bilateral TIEA. This applies for taxable periods beginning on or after 1 May 2009.

EUROPEAN UNION – TAXATIO N OF SAVINGS INCOME DIRECTIVE

Under the European Savings Directive, all European Member States and a number of associated and dependant territories are required to exchange certain information and/or impose a withholding tax on particular types of payments made to certain individuals. Andorra, Liechtenstein, Monaco, San Marino and Switzerland are not participating in automatic exchange of information but are exchanging information on a request basis. Their participation is confined to imposing a withholding tax. The other associated or dependant territories that are participating are Anguilla, Aruba, British Virgin Islands, Cayman Island, Guernsey, Isle of Man, Jersey, Montserrat, Netherlands Antilles and Turks and Caicos Islands.

TYPES OF ALTERNATIVE FUND VEHICLE

Open-ended or closed-ended investment company with fixed or variable capital Open-ended or closed-ended unit trust Open-ended or closed-ended common contractual funds Open-ended or closed-ended investment limited partnerships Each of the above may be established as single or multiportfolio funds. Investment companies and common contractual fund sub-funds have statutory ring-fencing. Each of the above may be established as single or multiclass funds.

Available types of corporate vehicle

Single portfolio company Segregated portfolio company (umbrella) Variable or fixed capital company. TYPES OF REGULATOR Y FUND CATEGORY

UCITS (no minimum initial subscription requirement); Retail Non-UCITS (no minimum initial subscription requirement except for private equity...

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