02117 Ucits Iv Management Company Domiciliation


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UCITS IV management Co

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02117 Ucits Iv Management Company Domiciliation

  1. 1. Assurance Asset Management UCITS IV Management Company Domiciliation PwC contacts: “The UCITS IV Management Going forward, Fund Managers will Company passport aims have the option to centralise their Ken Owens to help asset managers by asset management, administration, risk management operations within Tel: +353 1 792 8542 removing the burdensome one domicile. Email: ken.owens@ie.pwc.com task of setting up multiple Andy O’Callaghan Management Companies” Tel: +353 1 792 6247 Key Opportunities: A key component to UCITS IV is the 1. Significant cost savings Email: andy.ocallaghan@ie.pwc.com introduction of the Full Management Company Passport, a most Pat Convery 2. One location for the primary welcome development allowing Management Company Tel: +353 1 792 8687 for the cross border management streamlining the authorisation Email: pat.convery@ie.pwc.com of UCITS funds located in other procedures across all jurisdictions jurisdictions, effectively one location for the Management Company 3. One service centre managing a host of UCITS across the various member states. Under the current UCITS III regime, fund promoters need to establish a fully What does this mean for fledged Management Company in Investment Managers? every Member State where their With the new found freedom of funds are located except in the the UCITS IV regime, investment case of a self-managed UCITS managers are starting to look fund. According to the Exposure at restructuring their current draft from the EU Commission, corporate structures. This may this is estimated to generate costs involve amalgamating or moving in the range of €500,000 to €1 existing management companies. million per Management Company Consideration needs to be given to; a year. Additionally, out of the top 30 asset management groups in • Where is the most appropriate terms of cross-border distribution location for the Management of UCITS, 50% have management Company? companies in 4 countries or more. It • Whether it is right to move the is recognised that substantial cost Management Company? savings will be gained by operating from one core centre. • What will be the benefits to moving/consolidating existing Management Companies? First for business. First for people.
  2. 2. UCITS IV Management Company Domiciliation What is our response? • Fiscal environment promoters operating and distributing PwC can assist by completing a UCITS fund which includes the • Governmental incentives feasibility study which will give following services: a recommendation on the most • Ease of passporting the relevant appropriate jurisdiction best activity 1. Tax Services which include: suited for the location of the • Availability of qualified resources/ core Management Company and • Company redomiciliation and cost of those resources respective administration services. migration services including • Internal corporate governance consideration of location in group This review will include criteria such requirements structure; as: • Provision of ongoing regulatory Our Services comprise of the and tax reporting to ensure • Tax and Regulatory environment compliance with cross border following:- • Legal and political environment requirements in each relevant PwC has a fully integrated Asset jurisdiction; Management service offering for Example of current & revised structure under new regime Iceland Iceland Russia Russia Norway Norway Sweden Sweden Denmark United Denmark Ireland United Ireland Kingdom Kingdom Neatherlands Poland Neatherlands Poland Germany Ukraine Ukraine Germany Belgium Austria Belgium Austria Lux. Lux. Hungary Hungary France Switzerland Romania France Switzerland Romania Italy Italy Portugal Spain Portugal Greece Spain Greece Malta Malta 2009: 8 different Management Companies, 8 locations 2011: 1 Management Company, 1 location
  3. 3. UCITS IV Management Company Domiciliation • Group restructuring with • Government incentives & local Who would this be of interest integrated advisory and tax inducements; to? services; and • Staffing & resource capabilities; • Investment Companies entering • Product structuring of a cross the UCITS market for the first • Local compliance & corporate border fund platform with a single time; and governance requirements; and management company. • Investment Managers with • Marketability & passporting 2. Assessment & feasibility study existing UCITS funds, which have arrangements. on rationalisation of EU domi- several Management Companies ciled activities – with focus on 3. Business Rationalisation Ser- scattered around Europe who the following:- vices:- may want to consolidate their management companies into one • Product Structure and Investment • We will assist with the transfer of domicile. Strategy existing services to the primary core business location of choice • Marketing & Distribution and best suited to your corporate Current status and expected • Management Company & related structure and strategy; timeline Administration activities The Commission has until July • Services will include corporate 2011 until UCITS IV has to be fully As part of the feasibility study, we set ups, liquidation of existing implemented into the national will analyse the determining factors structures, regulatory and legislation of the 27 Member States. for domiciling each entity structure advisory assistance; and The final text has been adopted in a particular member state. Our • Consolidation of existing by the Commission on 22nd June review criteria will consist of the Management Company 2009, with an enforcement date following:- Structures into one key structure anticipated within 3 to 4 months. in primary location best suited • Assessment of the regulatory to the organisation structure and environment; management company resources • Review of the taxation and requirements implications; • Consideration of the legal and political principles; Timeline for UCITS IV implementation Feb 2001 Feb 2004 2004- July 2008 31 Oct Oct - Nov 2008 2-3 Dec 2008 22 June 1 July 2009 1 July 2011 2008 2008 2009 Implementing measures Implementation in MS Adopt. of End of Consul- EU Com CESR Work on ECOFin UCITS UCITS III impl. of tation proposal Advice on Compromise by meeting Directive states UCITS III in process re for a recast MCP Council of EU adopted MS UCITS IV UCITS Directive
  4. 4. pwc.com/ie © 2009 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. PricewaterhouseCoopers, One Spencer Dock, North Wall Quay, Dublin 1 is authorised by the Institute of Chartered Accountants in Ireland to carry on investment business. Designed by PwC Design Studio 02117.