Ireland is now recognised as a centre of excellence in the provision of fund accounting and fund administration services. In fact, the investment funds industry is now the largest employer in the International Financial Services market in Ireland. This industry led to the launch of the IFSC in the late 80’s and the sector has seen significant growth since then. At present there are over 45 administration companies operating in Dublin with a notable amount of organisations also located nationwide.
The Central bank is responsible for fund administration regulation here and different legislation applies to Irish based funds and non-Irish based funds. There have been some recent changes in legislation in the funds industry in Ireland
On 1st May 2013, the Central Bank has updated UCITS Notice 14. Previously, connected parties were obliged to list transactions with connected parties in the annual and half-yearly reports, this requirement has been removed. The amended UCITS Notice 14 has led to new requirements from board of directors (from either the management company or the self-managed investment company) to confirm compliance with regulatory requirements.
The Central Bank also published the first edition of the Market Update on 15 May 2013. This aims to highlight recent policy developments in relation to how the Central Bank operates by supervising investment funds and financial markets
The first issue of Market Update collated the newly released information on the Alternative Investment Fund Managers Directive, the updated UCITS Notices and Online Reporting for Investment Funds among others
On 15 May, 2013 the Central Bank has also published key Alternative Investment Fund Managers Directive (AIFMD) documentation including:
- AIF Rulebook
- AIFMD Questions and Answers document
- AIFM Applications forms
Throughout May 2013, the Central Bank has also aimed to improve regulatory reporting requirements by publishing a guidance note for Irish authorised investment funds. This aims to make people aware of the Central Banks Online Reporting System for investment funds. This also informs people of necessary returns required for different fund structures, and the frequency for such returns.
There has recently been the opening of a consultation period on the draft Financial Accounts Reporting Regulations. This has been set up by the Revenue Commissioners and will lead to the implementation Of Foreign Accounts Tax Compliance Act (FATCA) in Ireland. The regulations are accompanied by guidance notes on the implementation of FATCA in Ireland. The Guidance Notes provide further information on reporting by financial institutions, exempt financial institutions and the identification of Account Holders.
The regulations state that in order to be classed as a reporting financial institution, then one must carry on business as any of the following:
- A custodian institution
- A depositary institution
- An investment entity
- A specified insurance company
There are also provisions regarding the identification of account holders including the process of self-certification and the information that needs to be reported to the Irish Revenue Commissioners.
The funds industry is set to grow even further with more and more companies choosing Dublin as their hub.
There is a wide variety of open fund accounting Jobs open at present and we are seeing an increased demand for fund accountants/ transfer agency. Most companies believe in investing in the best people and the best of technology in order to be the best in the business. If you are keen to move into or progress your career within this dynamic and versatile sector please contact us today.
Orla Hogan
