The consultation process on the EU’s ‘Green Paper on the enhancement of the EU framework for investment funds’ has now closed, with the Commission expected to respond to the industry’s proposals shortly. GARY PALMER writes that the publication of the paper should make a substantive contribution in providing a catalyst for a truly integrated and competitive European market for investment funds, and lead to Europe becoming the global thought leader in the investment funds industry.

PATRICK CONNOLLY examines the effect of two new financial reporting standards, introduced to align UK & Irish GAAP with International Financial Reporting Standards (IFRSs), on 2005 fund financial statements.

The move to greater uniformity in VAT treatment following the Abbey National case in Europe is to be welcomed, writes KEITH LOUGHMAN, but adds that it is further proof that Ireland Inc needs to compete on its own merits as a centre of excellence for financial services and not rely on perceived tax advantages

Last November, Northern Trust acquired Baring Asset Management’s Financial Services Group (FSG). Twelve months on, VIC HOLMES looks back on the integration process.

In this, the fourth article of five, on opportunities identified in the Deloitte report for the IDA, DEIRDRE POWER writes that while the early wins in asset management are more likely to be small niche players, by creating a ‘cluster effect’, Ireland can create scale which would then facilitate the longer term ambition of attracting the bigger players to Ireland.

Mellon Financial Corporation, has appointed its first country manager for Ireland, indicating the growth to date of its Irish asset servicing businesses.

Cloning is a globalisation technique used to resolve the traditional fund promoters’ dilemma between the need for focussed product ranges and the diversification necessitated by different legal and fiscal frameworks. OLIVIER STORME and PIERRE OGER look at how Credit Agricole pioneered this cross-border structure between Luxembourg and Dublin.

Over the last two months the Dublin Funds Industry Association (DFIA) organised industry briefing seminars in four core markets - Boston, Milan, Frankfurt and London. The purpose of the seminars was to update and familiarise industry participants with progress and developments in Dublin.

Following the announcement on November 22nd that Northern Trust, the US investment management and fund administration corporation, is to acquire Baring Asset Management’s Financial Services Group (FSG), Northern Trust will move up the Dublin fund administrators league table.

Europe’s new internal markets commissioner Charlie McCreevy described the existing investment funds regime as ‘a bit of an old banger’ in his speech on the priorities for his Directorate at the Committee of European Securities Regulators (CESR) Conference held in Paris on December 6th.

After many months working with the hedge fund industry on the issue of registration, the Securities & Exchange Commission (SEC) is returning its focus to mutual funds, and in particular the role of directors. DARINA BARRETT reports on the main recommendations of the Mutual Fund Directors Forum’s ‘Best Practices and Practical Guidance for Mutual Fund Directors,’ report.

Ireland’s investment funds sector grew by 11.2 per cent in the first quarter of 2004, increasing its share in the European funds market to 8 per cent. Although Ireland remains in sixth place, it is closing in on the UK funds market, and just €48.2 billion now separates the two countries.

The concept of securities lending has taken a while to take root in Ireland, due to both a lack of understanding of the activity, and the perception that it is a high-risk activity. However, according to MIKE COSGRAVE, this is set to change, as the sector is now entering a growth period, driven by a number of factors including the increase in Irish collective investment schemes and global hedge funds.

The Irish Stock Exchange (ISE) has overtaken the Luxembourg Stock Exchange to become the largest exchange for investment funds listing in the world.

Offshore funds can now be listed on the Luxembourg Stock Exchange, due to an ‘arrêté ministériel’, or ministerial order, published on July 5th.

‘The Global Guide to Hedge Fund Servicing’ which will offer the industry an unique strategic insight into the latest developments in hedge fund servicing is currently in preparation for publication. The report will cover the full range of hedge fund services, including administration, prime brokerage, custody, accounting, legal planning and listing, highlighting and discussing the competencies of the leading jurisdictions and areas on a global scale. It is published by Fintel Publications Ltd. The readership will be the international industry, with managers to the fore. The Guide will have print and electronic editions The print edition will be an A4 magazine style report. The web edition will be published as a rich text e-mail format, and will form a website on the topic, which will be updated subsequently. For more information please click here.

Ireland is to join Luxembourg in introducing protected cell company (PCC) structures for investment funds, with legislation allowing the use of such structures expected to be in place by the summer. The measures will only apply to investment funds, and not to insurance and securitisation vehicles as is the case in other jurisdictions.

Ireland has maintained its position as the leading domicile for European registered exchange-traded funds (ETFs), with 26 per cent of European funds domiciled in Ireland, according to the Morgan Stanley Exchange Traded Funds Worldwide Guidebook.

As the world’s fourth largest mutual fund market initiates tax changes aimed at enabling foreign-domiciled funds to be marketed there, David Lawless writes that as a result, foreign funds, including those domiciled in Ireland, may have a market advantage over local funds.

HSBC has acquired Bank of Bermuda for $1.3 billion, in a move that heralds the rationalisation of two of Dublin’s major fund operations.

Directive No. 2001/107/EC, otherwise known as the ‘Management Directive’ part of UCITS III, was signed into Irish law by Minister for Enterprise, Trade and Employment, Mary Harney, on October 21st.

Friday, 15 August, 2003 marked the authorisation by IFSRA of the first UCITS III fund in Ireland. The fund, Williams de Broë Assetmaster Fund plc, for which Ernst & Young acted as project manager and regulatory advisers, is an umbrella company with four sub-funds, each of which is a fund of funds.

Many industry commentators are referring to Ireland becoming an ‘offshore’ fund administration centre (i.e. servicing non-Irish domiciled funds) writes BRIAN COLLINS,right, and he expects further growth in this area into the future.

Euro-VL (Ireland), a subsidiary of the Société Générale Group, has assumed the fund administration business of SG Asset Management (Ireland), and its strategy now is to expand and develop the business.

Many factors contributed to Mason Hayes & Curran’s (MHC) decision, in September of this year, to launch a dedicated investment funds practice writes FIONAN BREATHNACH, not least of which was the belief that the industry has huge potential for continued growth.

As centre of choice for the administration of money market and alternative investment funds, Dublin has not suffered unduly from the current volatile global market conditions, which have hit equity funds much harder, writes chief executive of the Dublin Funds Industry Association, Gary Palmer.

Ireland’s asset management industry has come a long way from the ‘cottage’ type industry it was when the IFSC was launched, to an industry which now has in excess of €160 billion in assets under management. However, the sector still lags considerably behind the fund administration/custody sectors in terms of assets under management/administration, and there now exists the need to consider the next development phase and move the sector up the value chain writes GAVIN CALDWELL, above.

Hedge fund industry participants LORCAN TIERNAN and SARAH LONG welcome the Central Bank’s recent approval of retail fund of hedge funds and expect that the growth in directly invested hedge funds will, to a large extent, be matched by the growth in funds of hedge funds.

With several new EU Directives, combined with international accounting standards, coming into force, Dublin’s investment funds community needs to invest time and money into ensuring they comply with these regulations.

Ireland is the leading domicile for European registered exchange-traded funds (ETFs), with almost 28 per cent of European funds domiciled in Ireland, according to the Morgan Stanley Exchange Traded Funds Worldwide Guidebook.

The total potential business for Ireland arising out of the pensions pooling vehicle, could double that of Dublin’s fund administration sector, Pat Wall, a tax partner at PricewaterhouseCoopers has predicted.