First accounts move to Ireland’s ICAV funds 12 March 2015Dublin Reporter: Stephanie Palmer
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Permal Group is moving some of its British Virgin Island accounts to Ireland, after the Irish Collective Asset-management Vehicle (ICAV) was signed in to law last week.
The alternative asset manager will move a total of almost $4 billion from separate accounts to a newly-launched ICAV.
The ICAV is a new vehicle for Irish investment funds, and will provide a tailor-made corporate fund vehicle for both UCITS and alternative investment funds. It is designed to reduce the administrative complexity and costs of establishing and maintaining collective investment schemes in Ireland.
It is a bespoke piece of legislation, drafted with the specific needs of investment funds in mind, and will not be affected by changes to existing legislation that targets trading companies.
The bill also includes a mechanism for non-Irish investment companies to migrate to Ireland and become an ICAV in a single process, and allows for more streamlined audited accounts, easier processes to amend constitutive documents, and the ability to choose ‘check-the-box’ classification for US investors.
Pat Lardner, CEO of the Irish Funds Industry Association, said: "The ICAV legislation is an important further step in strengthening Ireland's standing as a leading domicile for international funds and demonstrates that we are continuing to take a pro-active approach in meeting the evolving needs of fund promoters.”
“We have worked closely with both the Irish authorities and the fund management community to ensure the ICAV is tailored to meet the investor's needs. The ICAV will also provide an additional option for promoters, complementing the established range of Irish fund vehicles available here."
Omar Kodmani, CEO of Permal Group, added: "By creating ICAVs, Ireland has developed a first class onshore structure - a move that enhances its status as a leading jurisdiction for regulated funds. This is the direction of investor tide, particularly for Europe where investors are seeking EU-domiciled fund structures and enhanced supervision by the likes of the Central Bank of Ireland."
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