Setting up an investment business in Ireland requires an understanding of many legal nuances. In the first part of the material on retail investment funds, we figured out the legal forms of funds. In this part, we will take a closer look at what requirements are imposed on fund managers, what assets can be invested in, and how effective portfolio management should be carried out.
Requirements for retail fund managers
For those wishing to open an investment fund in Ireland, it is important to understand that retail fund managers are subject to European regulatory requirements. In addition, managers are subject to the rules and regulations of the country's Central Bank.
Allowed asset classes
If you want to register UCITS in Ireland, then you need to have a very clear idea of what assets you can invest in.
You can invest in:
- transferable securities and money market instruments that are admitted to official listing on a stock exchange in a member country or that are traded on a regulated market;
- recently issued transferable securities, which will be admitted to official listing on the stock exchange during the year;
- other instruments, provided the issue or issuer is regulated to protect investors;
- UCITS units;
- selective derivative financial instruments.
If you need to obtain a permit to invest in Ireland, please contact our experienced professionals to find out what documents are needed for an investment project in Ireland. We are ready to provide a full package of legal services for the establishment of investment funds in Ireland.
If you wish to establish an Irish retail investment fund, it is important to know that funds are not subject to any income taxes.
Although dividends, interest and capital gains that a fund receives on its investments may be subject to taxes, including withholding taxes, in the countries in which the investment is located, these foreign taxes may nevertheless be reduced or eliminated in accordance with Ireland’s tax treaties.
The retail fund must appoint a depository located in Ireland. The custodian is responsible for safeguarding assets, controlling funds and supervising the performance of duties.
The depositary can be:
- a credit organization;
- an investment company that meets the EU capital adequacy requirements;
- another category of institutions that are subject to supervision.
To order legal advice for corporate activities of an investment company in Ireland, please use the order form below.
Retail investment fund reporting requirements
If you are planning to open an investment fund in Ireland, it is important to understand what responsibilities await you. Retail funds are required to publish an annual report for each fiscal year and a semi-annual report. The UCITS annual report must be published within four months of the end of the year, and the semi-annual report must be published within two months of the end of the period. Both should be sent to the Central Bank and also should be sent to investors.
Assistance in the registration of an investment fund is one of the priority areas of our company. We provide full-service solutions for clients wishing to obtain Investment Business Permit in Ireland or any other EU member-state.