On 1 October this year, Dillon Eustace successfully obtained approval from the Central Bank of Ireland (the "Central Bank") for the first re-domiciliation of an investment trust from the Cayman Islands to Ireland. The re-domiciliation in question involved the migration to Ireland of a trust registered with the Cayman Islands Registrar of Trusts which, upon migration, was authorised as a Qualifying Investor Fund by the Central Bank pursuant to the Unit Trusts Act, 1990.
The approval was granted in light of the recent commencement of the legislation applicable to re-domiciliation of corporate entities in Ireland. While there is no specific legislation enacted in respect of the re-domiciliation of trusts, the Central Bank has now agreed the procedures to be followed in respect of such re-domiciliations.
In essence the re-domiciliation process for an investment trust, to the extent necessary and practical, mirrors that for corporate entities and involves the following:
the trustee of the re-domiciling (or migrating) fund retiring as trustee and, subject to the terms of the original trust instrument, facilitating the appointment of a new trustee domiciled in Ireland and the change in jurisdiction and governing law applicable to the trust; amendment and restatement of the trust instrument to ensure that it complies with Irish law and meet the requirements of the Irish Central Bank, including restating the trust instrument so that it takes the form of a bi-lateral arrangement involving both the Irish domiciled manager and trustee; formal application to the Central Bank for authorisation under the relevant Irish regime either as a UCITS or a non-UCITS (subject to prior approval of the Promoter and Investment Manager of the trust being obtained from the Central Bank); in conjunction with the filing of the application for authorization, the Central Bank will also require evidence of the formal migration of the trust from its original domicile and evidence of its good standing and solvency prior to such migration. the requirements of the Central...