The first Irish Collective Asset Management Vehicle (Icav) is likely to launch in a matter of weeks and the Central Bank of Ireland has said it will shortly start reviewing applications, according to Carne, a provider ofgovernance services.
The Icav is likely to become a vehicle of choice for fund providers establishing funds in Ireland, Carne says.
Carne expects that managers who look for investment from US investors will find it attractive to transition from a Public Limited Company (PLC) structure to the Icav. One of the primary benefits of the Icav is that it will 'check the box' for US tax purposes, meaning it will be treated by US authorities as a transparent entity, unlike the plc.
Funds sheltered in the Icav structure will also not be subject to a number of company law requirements that are viewed as inappropriate for investment funds. For example, there will be no requirement for an annual general meeting.
From a prudential perspective the Icav will be regulated in the same manner as a PLC or unit trust under Ireland's Ucits Notices or AIFM Rulebook by the central bank.
Pat Lardner, chief executive of the Irish Funds Industry Association, tells Funds Europe that Ireland's broad strategy is to attract funds in general rather than specific types.
The Icav is one of a range of initiatives within Ireland's funds industry recently. The central bank has also created a framework for loan origination to capitalise on interest in non-bank funding within the EU.
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