International Funds IrelandPresentation Transcript
Ireland: the location of choice
A true Gateway for the
establishment of International
• Ireland’s success in the Investment Management industry
• The products Ireland has to offer
• Why set up your International Funds in Ireland?
• About PwC in Ireland
• Ireland as a location for Shariah funds
• Emerging and popular Islamic Investment Funds in Ireland
• Our Islamic Finance Team
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• Population – 4.5 million, Total Area – 70,280 sq. km
• Only English speaking country in Europe, member of the EU,
• Well educated young workforce -
• Ireland has one of the youngest population’s in Europe with
over 36% under the age of 25 years.
• The education system in Ireland is one of the best in the
world according to the 2008 independent IMD World
Competitiveness Report.Almost 1 million people are in full
• Pro business environment – 2008-2012 Business Environment
Ranking of the Economist Intelligence Unit placed Ireland 11th
globally out of 82 countries, naming it as one of the most
attractive business locations in the world.
• A politically stable country and respected regulatory regime.
• Strategic location with easy access to the EMEA region.
• Excellent IT skills and infrastructure.
• Quality of living - Dublin ranked 25th out of 215 (in top 12%) in
the Mercer 2009 Quality of Living Global City rankings, ahead of
several major cities including Paris (33rd), London (38th), and
• Ireland has a significant international tax treaty network.
Ireland does not appear on either the grey or black OECD tax
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Financial Services in Ireland today …
Home to 25 of top 50 world banks
One of the largest investment
management centres in the world
European location for life, non life,
captives, reinsurance, securitization
20,000 + employed in International
Financial Services Centre and 50,000
in Financial Services
All island economy
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Who we are and why are we here?
• Islamic Finance growth :
• Islamic finance assets are set to reach US$1.6 trillion
by 2012 from US$660 billion of assets at the end of
2007, according to global management consulting
firm Oliver Wyman.
• It is expected that within the next decade, 50-60% of
the total savings of the world's 1.2 billion Muslims will
be in the form of Shariah compliant products.
• Ireland as a domicile for Shariah funds:
• A number of new centres of the domiciliation and
servicing of Shariah funds have begun to emerge in
Europe. Ireland is one such domicile which is
experiencing a rapidly growing interest in this area.
• Asset Managers and Banks can use Ireland as a hub
to launch their Shariah funds where they can
distribute their funds from to shareholders on a
• 353 fund promoters from over 50 countries have set
up Irish domiciled funds which are distributed to over
60 countries across Europe, Asia, the Americas, the
Middle East and Africa.
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Ireland’s success in the Investment
Ireland’s Success in the Investment Management industry
• As of February 2009, Ireland has assets under
management of EUR 1.43 trillion in over 10,000 funds,
according to statistics from the Irish Financial Regulator
and the Irish Funds Industry Association (IFIA).
• Fund promoters can rely on Ireland as a ‘one-stop-
shop’ for the establishment of management companies,
the domiciliation of funds and unparalleled experience
servicing of all types of instruments. An abundance of
the big players of the fund servicing world are situated
in Ireland, with an extensive range of services available
including fund administrators, lawyers, custodians etc.
• Ireland is a mature funds market with 20 years of
experience in dealing with a broad range of fund
• Memoranda of Understanding: Ireland has entered into
bilateral MoUs with China; Dubai; Hong Kong; Isle of
Man; Jersey; South Africa; Switzerland and USA. A
new MoU with Taiwan is under negotiation. Within the
EU, Ireland cooperates with all relevant authorities on
basis of the provisions of the European directives.
• 12,000 skilled employees with availability of industry-
wide training (over 9,500 employed directly by fund
administrators and over 2,500 employed in associated
services, e.g. legal, tax, audit, listing etc.)
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Ireland – a world leader
• Largest hedge fund administration centre in the world.
(Ireland services an estimated EUR 799 bn in HF
assets as of Dec 2008, representing approx. 41% of
global HF assets, Source: IFIA & HFM Week)
• Largest number of stock exchange listed investment
funds. (1,605 investment funds (2,209 sub funds) listed
as of Dec 2008, Source: ISE)
• A leading European domicile for exchange traded
funds. (Irish ETFs were valued at EUR 31.5 bn as of
October 2008, Source BGI Global Investors)
• Fastest growing European and UCITS fund
administration centre over the past five years. (Irish
domiciled net assets grew by 49% between 2004-2008;
the European average for the same period was 15%,
Source: Central Bank of Ireland & EFAMA)
• A leading European domicile for money market funds.
(EUR 330 bn in Irish domiciled money market funds as
of Feb 2009, Source: Central Bank of Ireland)
• A recognised EU and OECD, open and tax transparent
jurisdiction with the lowest headline corporate tax rate
in the OECD.
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Ireland – A Substantial and Growing Jurisdiction
Irish Administered Alternative Assets
2007 1,380 bn
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Growth in Assets of Funds serviced in Dublin
Growth in Assets of Funds serviced in Dublin
2000 2001 2002 2003 2004 2005 2006 2007 2008
Fitzrovia figures @ 30/06/08
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Domiciled Market Share Ranking by Assets as at 30 June 2008
Company Name Assets in US$Million Prior Year Assets in US$Million
1 Barclays 163,877 134,052
2 Goldman Sachs 99,910 81,905
3 HSBC 56,268 37,268
4 Russell Investments 48,492 53,824
5 Vanguard Group 39,219 36,648
6 Royal Bank of Scotland 39,048 12,609
7 Insight Investment 36,315 28,556
8 State Street 29,132 19,513
9 Blackrock Financial Management 27,979 16,837
10 PIMCO 25,763 21,313
Total Irish Domiciled Funds 1,240,859 1,100, 182
Source: Fitzrovia figures @ 30/06/08
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The products Ireland has to offer
UCITS – the product of choice for retail investments
• UCITS is the product of choice in Ireland for fund
managers looking to set up the following types of funds:
• Exchange Traded Funds
• Money Market Funds
• Index Funds
• Equity Funds
• 130/30 Funds
• The UCITS product is suited to managers who would like
to distribute their funds to shareholders on a worldwide
basis. UCITS funds may avail of a “passport” allowing
distribution throughout the EU without having to undergo
authorisation in each individual jurisdiction. UCITS now
recognised as a global brand of quality for retail
• 353 fund promoters from over 50 countries have set up
Irish domiciled funds which are distributed to over 60
countries across Europe, Asia, the Americas, the Middle
East and Africa.
• No minimum subscription required.
• Regulatory approval : 4-6 weeks.
• Legal Structures: Investment Company, Unit Trust and
Common Contractual Fund (CCF).
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The ‘Super QIF’ – the product of choice for alternative investments
• The QIF is suitable for sophisticated investors namely
institutional and high net worth individuals.
• It is a flexible regulated fund structure and has no
• The QIF is the product of choice in Ireland for fund
managers looking to set up the following types of funds:
• Hedge funds
• Property funds
• Venture capital
• Private Equity
• Futures and options
• Fund of hedge funds
• Investor subscription:
• Qualifying Investor non-UCITS (Minimum Euro
250,000 + wealth criteria)
• Regulatory approval : 24 hours.
• Legal Structures: Common Contractual Fund (CCF),
Investment Company , Unit Trust and Investment Limited
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Why set up your
international funds in Ireland?
12 Compelling Reasons to Choose Ireland
Highly regarded and well regulated environment for
A leading location for the administration of international
Ireland is the largest hedge fund administration centre in
A leading cross border jurisdiction for Exchange Traded
Funds and Money Market Funds in Europe.
There are now over 4,400 funds and sub-funds listed on
the Irish Stock Exchange, making it the largest
exchange in the world for funds listing.
Speed to market: 24 hour approval process available for
Qualifying Investor Funds (QIFs) and an average 4-6
weeks for all other fund structures .
Fast track promoter approval – within one week of
Flexible, proactive regulatory environment.
Location – optimum time zone to ensure global
Only English speaking country in the Eurozone, Euro
Extensive industry experience and expertise. In Ireland
today there are over 12,000 people employed directly in
the investment fund industry.
Dedicated Shariah unit within the Irish Financial
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Irish Tax Benefits
Ireland is the only major international fund domicile that
is noted as having adopted the key taxation standards
and principles of the OECD. Ireland does not appear on
either the grey or black OECD tax haven lists.
Ireland is a recognised EU and OECD, open and tax
transparent, jurisdiction with the lowest headline
corporate tax rate in the OECD of 12.5%.
Irish regulated investment funds are exempt from Irish
tax on their income and gains irrespective of investors’
No Irish withholding taxes apply on distributions from
Irish funds for non Irish investors.
Irish collective investment funds are not obliged to
charge VAT and most of the services provided to a fund
are exempt from VAT.
Common Contractual Funds (CCFs) – tax transparent
No stamp duty or capital duty charges on the
establishment of a collective investment fund.
Double Taxation Treaties – 50 tax agreements, 6
additional new treaties underway. Irish domiciled funds
have access to the US double taxation treaty where a
fund is demonstrated to be trading. This is a
considerable advantage for Exchange Traded Funds
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Other Distinguishing Factors
• EU Savings Directive adopted in Ireland –exchanging of information
regime instead of application of withholding taxes.
• Irish risk management process is based on guidance notes with built in
flexibility. Risk monitoring for non-sophisticated funds in Ireland is on a
daily basis. In Ireland the risk management process is not the
responsibility of any designated individual.
• Irish funds distribute to over 60 countries, 353 fund promoters have
domiciled funds in Ireland, 786 fund promoters have funds serviced in
• Ireland has entered into bilateral memoranda of understanding with
the following jurisdictions outside the EU: China, Dubai, Hong Kong, Isle
of Man, Jersey, South Africa, Switzerland and the USA. Future MOU
planned with Taiwan.
• Fastest growing European and UCITS fund administration centre over
the past five years. (Irish domiciled net assets grew by 49% between
2004-2008; the European average for the same period was 15%, Source:
Central Bank of Ireland & EFAMA).
• Promoter capital: Irish promoters must have minimum net shareholder’s
funds of €635,000, or equivalent in another currency.
• Promoter liability – Irish promoters not legally responsible for losses of
funds, as long as due care has been provided.
• The Financial Regulator's Notices specifically require the custodian to
act in the interests of the unit holders in the funds. This provides
significant comfort to investors. The custodian will be directly liable to the
unit holders for any unjustifiable failure to perform its obligations or
improper performance of them. Such duties will also extend to the
custodian's appointment of any sub-custodians, which is of particular
importance to investors where assets are likely to be held in various
jurisdictions outside Ireland.
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About PwC in Ireland
Our Practice in the Investment Management Industry in Ireland
PricewaterhouseCoopers is the leading professional
services firm in Ireland. According to the encyclopaedia
of the Irish funds industry 2008, we audit 64% of the
market share by sub fund assets.
In PwC Ireland, the IM practice is the largest part of the
Irish firm (20%). This group has approximately 400
people, 20 partners/ 50+ Directors/Managers. It is also
the 5th largest Investment Management practice in
We also have in-depth understanding of the operational
processes and procedures of a Fund and a
comprehensive knowledge of fund accounting practices
across all major jurisdictions.
PwC Ireland has a thorough understanding of the
regulatory and taxation environment for Investment
Management companies located in Ireland.
PwC Ireland has involvement with many different
industry bodies including – Irish Funds Industry
Association (IFIA), Organisation for Economic
Cooperation and Development (OECD), International
Organisation of Securities Commissions (IOSCO),
Alternative Investment Management Association (AIMA)
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Our Market Share
Ireland – Combined (Irish and non-Irish Domiciled) Market Share
Combined Market Share by number of Subfunds Combined Market Share by Subfund Assets
PwC 17% PwC
20% KPMG KPMG
Deloitte 55% Deloitte
Others 23% Others
Information as at 30 June 2008. Source: Fitzrovia Dublin Fund Encyclopaedia: 2008
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Our Market Share Continued..
Ireland – Irish Domiciled Market Share
Irish Domiciled Market Share by Subfund Irish Domiciled Market Share by Subfund Assets
9% 3% 12%
18% 47% KPMG KPMG
Deloitte 20% Deloitte
Information as at 30 June 2008. Source: Fitzrovia Dublin Fund Encyclopaedia: 2008
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PwC – Thought Leadership publications
Examples of our recent thought leadership* materials include:
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Ireland as a location for
Irish Financial Regulator’s new Shariah regulatory team
• In light of the significant activity within Shariah investment
funds in Ireland the Irish Financial Services Regulatory
Authority (the “Financial Regulator”) has confirmed the
establishment of a dedicated regulatory team for the
authorisation of Shariah funds in Ireland.
• In the last year, there has been an increased proliferation
of Shariah financial products being domiciled and
administered in Ireland.
• This announcement of a dedicated Shariah regulatory team
demonstrates Ireland’s flexible and proactive regulatory
environment and further cements Ireland’s attractiveness
as a domicile of choice for Shariah investment funds.
• The new Shariah regulatory team will ensure efficiency and
consistency when processing Shariah applications.
• In addition to this, the Financial Regulator has also
confirmed that it will proactively engage with its regulatory
counterparts in MENA (Middle East & North Africa)
countries and other jurisdictions in order to share an
understanding of the respective regulatory systems.
• This new development should be encouraging for Shariah
compliant Asset Managers who are looking to expand their
current distribution to Europe and the Far East through
setting up of Irish UCITS.
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PwC - Leading the way in Islamic Finance in Ireland
• PwC have established a dedicated Islamic Finance team
comprising of experts from various line of service including
Audit, Advisory, Regulatory and Taxation enabling us to
provide comprehensive service to our clients.
• Our group has a detailed understanding of Shariah
principles, covering various school of thoughts in Islam.
• PwC have issued various publications on the subject for
Accountancy Ireland, Finance Magazine, Sunday
Business Post, PwC global Newsletter, Islamic Finance
• PwC has a representation on the Industry Shariah expert
group advising on various issues, such as purification of
non Islamic income, custody of Shariah funds assets etc.
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PwC - Thought leadership in the industry on Islamic Finance
We are proud of our track record in producing thought leadership and advisory publications in the Financial Services sector.
Examples of our recent thought leadership* specific to Shariah funds include:
We have also written a number of articles on Shariah Funds for publications such as, Finance Dublin, Accountancy Ireland,
Sunday Business Post , Euromoney etc
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PwC - Our Experience with Shariah Funds
• Advice on set up of various Islamic fund structures in
Ireland including UCITS, hedge funds, fund of funds and
• Undertook a Gap assessment project for an Irish fund
administrator to advise them on how they would service
Shariah compliant funds.
• Provision of advice on Purification of non Islamic Income
to an Investment Manager establishing Shariah
• Provided Islamic Instruments support from accounting
and classification perspective to an Irish administrator
servicing Shariah compliant funds.
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Emerging and popular Islamic
Islamic Investment Funds established in Ireland to date
• Equity funds
• Exchange Traded Funds (ETFs)
• Fund of Hedge Funds
• Murabaha and Mudaraba
• Long / Short (hedge funds)
• MMF’s being created
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Our Islamic Finance Team
Islamic Finance Service Team
Ken Owens (Shariah Funds Assurance Partner)
• Ken is a Partner in the Financial Services Group specializing in assisting clients with a wide range of
international funds administered in Dublin. He has extensive knowledge and experience in advising
investment management clients including UCITS funds, Alternative Investments funds and Asset
Managers in Ireland. He provides a range of services to his clients including audit, SAS 70 controls
reporting and regulatory advisory services. Ken leads the PwC Investment Management Regulatory
Practice. Over the years Ken has assisted clients in structuring new funds and advised on various
accounting, tax and operational matters. Ken has been involved with the Dublin Funds Industry
Association (“IFIA”) for a number of years and has lectured on auditing and accounting issues to the
industry on behalf of the IFIA and the Institute of Chartered Accountants in Ireland. Ken is a member of
the Auditing Standards Committee of the Institute of Chartered Accountants in Ireland. Ken is a
chartered accountant and has a degree in accounting and finance from the Dublin City University. Ken
now leads the Islamic Finance Practice at PwC in Ireland.
Pat Wall (Tax Structuring Partner)
• Pat Wall is a senior partner specialising in international taxation particular focus on the investment
management and insurance industries. He is a partner with the firm since 1986 and throughout that
time he has specialised in international financial services. He has been associated with the
development of Dublin’s financial services sector from its inception and he has played an important role
in the development of Ireland’s tax policy on the international financial services. He was actively
involved in the transposition of the original EU directive on UCITS which laid the foundation for the
funds industry in Dublin. His was twice voted one of Ireland’s leading tax advisers by International Tax
Review. Pat currently sits on the Irish Prime Minister’s International Financial Services Centre Clearing
House Group (IFSC CHG), which has overall responsibility for competitive policy in international
financial services. Pat is a member of PwC’s European Investment Management Group. In the past he
has served on the firm’s international investment funds group with special responsibilities for
international financial centres.
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Islamic Finance Service Team
Pat Candon (Assurance Partner)
• Pat worked in the Channel Islands for a number of years, specialising in the mutual funds industry. On
returning to Dublin in 1990 he assisted in the set up of our specialist funds audit group. He has lectured
extensively on the auditing and accounting aspects of funds. Pat has worked exclusively in the Irish firm’s
investment management practice, assisting clients in the structuring and audit of a wide range of
international funds administered in Dublin. Pat became the audit leader for the Dublin firm's investment
management practice on 1 July 2003 and served in that role until 30 June 2007. He was also a member
of the firm's audit leadership team in that period. He has been a member of the Irish Funds Industry
Association marketing committee and served on the organizing committee of the annual IFIA/NICSA
conference for two years.
Omer Khan (Shariah Funds Assurance Manager)
• Omer is a Manager with the Investment Management Group in Dublin and has significant experience
working on IFRS/Irish GAAP Funds in financial services industry. Omer is the lead manager of PwC
Ireland’s Islamic Finance Group which has been recently established to assist clients in the Islamic
Finance area. He is also a manger on a number of investment funds targeted at the Islamic Market which
are currently administered out of Ireland. Omer is the author of several articles on Islamic Finance in
Irish/European publications. Omer was involved in the implementation of a service offering around advice
and support on the set up of Shariah Fund Administration in Ireland - Gap Assessment. He has also
advised on set up of various Islamic fund structures in Ireland and provided advice on: Purification of non
Islamic Income, Islamic Instruments support from accounting and classification perspective, Investment
restriction monitoring, Cash Management & Custody of Assets.
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