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Up to 100 new funds set to take advantage of Ireland’s ICAV Bill

The Irish Funds Industry Association (IFIA) has confirmed up to 100 new funds are due to be launched in Ireland under the new Irish Collective Asset-management Vehicle (ICAV) Bill.

According to the IFIA, several asset managers have more than EUR10 billion in assets ready to be deployed in the ICAV structure as soon as it is passed in to law, which is expected soon after the Irish parliament summer recess.
 
To allow a smooth transition, a streamlined process is in place to facilitate the conversion of existing structures to the ICAV.
 
Speaking at IFIA’s Annual Global Funds Conference in June, the Irish Prime Minister Enda Kenny confirmed the Irish government’s commitment to the ICAV Bill and its dedication to making the country’s regulated fund structures “the most accessible, innovative and sophisticated in the EU”.
 
One of the main highlights of the new Bill is that funds will not have to comply with certain Irish and European company law and accounting requirements, which target trading companies rather than investment funds. This means ICAVs will avoid some of the administrative costs that currently apply to investment companies, such as those incurred by the Companies Act.
 
Additionally, the legislation does not impose a risk diversification requirement, and should not require investor consent for routine changes to constitutional documents. This allows the fund to be run more efficiently, without unnecessary delays in decision-making and with a minimised administrative burden. It also allows the fund to operate without the need to hold an AGM, and separate audited accounts can be created for each sub fund in an umbrella structure.
 
Pat Lardner, CEO of the IFIA, says: “This is a new era for the funds industry. In the following months we firmly believe the ICAV will become the vehicle of choice for investment funds looking to domicile in Ireland. Partnered with our unrivalled fund services industry, the ICAV will now provide an accessible and flexible framework in which fund managers can do business.
 
“In another move to further the industry’s development, the Central Bank of Ireland has published its Loan Origination Funds consultation paper. We look forward to this structure being finalised over the coming weeks and offered as an additional product in the suite of Irish regulated fund types.”

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