Sean Fleming TD, Minister of State at the Department of Finance with responsibility for Financial Services, in launching the latest annual Action plan under the “Ireland for Finance” strategic framework, prioritised the passage through parliament of the Bill, which puts in place a key element in Ireland's funds platform offering, i.e. the transparency of a limited partnerships structure to enable the establishment of modern private equity funds structures, an important remaining element in the suite of funds offerings of Ireland as an international funds jurisdiction.
The ‘Ireland for Finance Strategy’ framework comprises of four ‘pillars’ and three “horizontal priorities”. The four pillars of the framework consist of (i) operating environment, (ii) technology and innovation, (iii) talent and (iv) communications and promotion. The three horizontal priorities that apply across the four pillars are (i) regionalisation, (ii) diversity and (iii) sustainable finance.
The ILP Bill is actioned so as to provide for a “more flexible regime for investors wishing to use a partnership structure for regulated investment funds, to make Ireland more attractive to international investors, and to grow the private equity funds sector”.
The passage was welcomed by Irish Funds who said that the new offer will particularly appeal to fund promoters and managers from other common law countries, such as the US, UK, Hong Kong and Australia. This is due to Ireland’s position as the only common law country in the EU post-Brexit on 31 December and its importance as a global English-speaking gateway to Europe.
Pat Lardner, CEO, Irish Funds commented: “Ireland has today reasserted its position as a leading, full-service location for the global funds industry and I congratulate Government and the Minister for Financial Services Sean Fleming TD, on this milestone.
“This is game-changing in terms of Ireland’s global competitiveness and will enable and drive new business and opportunities, as well as retain business which has previously been lost overseas. It will help develop Ireland as a centre for green financing and align us with EU policy goals in sustainable finance.
“Importantly it will stimulate growth, safeguarding and creating jobs across the sector benefiting local communities throughout Ireland and increasing the industry’s Exchequer returns at a critical time for the economy.”