This date refers to the date of the issue the inte
View the full issue in which this article appeared
Brian Dillon
Dillon Eustace
As Ireland remains firmly in the European Union, its funds industry continues to grow in complexity, diversity and sheer size, says Brian Dillon of Dillon Eustace

In your opinion, what do asset managers most demand, and value, from their service providers?

I think that it is not so much what asset managers demand from their service providers, rather more a question of what they have come to expect from their service providers here in Ireland.

The Irish fund industry has, since its inception over a quarter of a century ago, developed a global reputation for expertise and knowledge in areas such as fund administration, custody, depository services, compliance oversight, tax advisory, audit and legal services. The industry has evolved to a stage where the companies and firms operating here and competing globally across all sectors are recognised as market leaders.

The intense competition serves to improve the quality and efficiencies of services. Industry service providers are well resourced with well-educated and highly experienced fund professionals who are equipped to support their asset manager client requirements in a prompt and cost-efficient manner. Clients expect their advisers to provide industry-focused, innovative, solution-driven and prompt advices from their advisers.

What kind of things do your clients typically outsource, and what do they keep in house?

The majority of our asset management practice clients are based outside of Ireland. Their in-house counsel would engage with our fund lawyers at an early stage on product planning and on structuring, drafting and negotiation of fund documents, and representation with the central bank. In addition, non–EU clients will often seek guidance on the ever-increasing amount of EU regulatory and legislative requirements that impact their Irish fund products.

Has this changed in recent years?

As a result of the increasing volume and complexity of regulations and legislation, clients will seek advice from other areas of our practice, most noticeably from fund governance and regulatory and compliance. In addition, we are being approached by companies seeking advice in circumstances where issues have arisen which might result in administrative or enforcement actions from regulators. Specialist lawyers here at Dillon Eustace can assist these companies. Our tax, foreign registration and Irish Stock Exchange listing departments remain busy assisting fund clients.

What kind of funds are you seeing the most demand for? Are you seeing an increase in ETFs?

The various fund teams at Dillon Eustace are continuously working on new funds for a broad spectrum of clients. We would certainly see an increase in alternative asset funds, hedge funds, funds of hedge funds and private equity structures. Lawyers here have also recently advised on several real estate funds and more complex index-tracking UCITS and exchange-traded funds (ETFs).

Increasingly, clients who are looking to establish ETFs will also seek expert listing advice from firms who have listing departments with relevant ETF experience, and we are fortunate enough to provide that here at Dillon Eustace. While we have always had a large Asian fund client base we are seeing more interest in UCITS from Singapore, India and Hong Kong. Also, long-only UCITS Irish collective asset management vehicles remain common.

Is there concern that if the UK reduces corporation tax that will have a negative effect on the funds industry in Ireland?

As you will know, the Irish corporate tax rate of 12.5 percent has been in place for many years. There has been much discussion from different countries about reducing their own tax rates to similar or even lower rates. There have even been suggestions from other countries that Ireland should increase this competitive tax rate. The Irish government’s consistent response, however, is that there will be no increase.

No more than trying to predict the implications should the UK, as expected, exit the EU in the coming years, it is difficult to predict what possible impact a reduction in the UK tax rate might have on the funds industry here in Ireland. While there are tax advantages for fund-related businesses operating here in Ireland, there are many other factors as to why the Irish industry continues to thrive, such as the knowledge and expertise mentioned earlier. In addition, and perhaps of fundamental importance, is the fact that Ireland remains a fully committed member of the EU—and this is expected it to continue.

Interviews
The latest interviews from Asset Servicing Times
Features
The latest features from Asset Servicing Times
The transfer agency space may not have taken such a regulatory battering as much of the industry, but at ITAS 2017, providers heard that they will have to start making changes if they want a fighting chance of survival
As the long-standing Barclays Point risk analytics solution winds down to retirement, investment managers have some tricky decisions to make, according to Confluence’s Katie Kiss
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
As they face increasing demands from clients and regulators alike, fund administrators could be best off leaving back-office technology upgrades to the professionals, according to Kelly Ashe of Pacific Fund Systems
In the search for alpha, appointing an investment fund and a management company can bring myriad benefits, says Eduard von Kymmel of VP Bank
Fund distribution is entering the digital age, and so can traditional service providers. Fundsquare’s Paolo Brignardello explains why it’s in their interests
Blockchain may be the talk of the town, but before the industry starts moving ahead, it has to figure out in which direction it will go
Technology is changing the way we live, work and invest. Experts discuss how transfer agency is reacting as the movement gathers pace
The Middle Eastern markets are diverse in many ways, and they’re focusing on themselves before they look to harmonise settlement cycles within the wider region
Country profiles
The latest country profiles from Asset Servicing Times
The Asian market may be improving on the harmonisation front, but the situation is still far from ideal. Experts discuss what there is still left to do
Brazil is hogging the limelight from its South American neighbours. But, although reforms are in full swing, there is still work to be done
Securities Lending Times

Visit our sister site
for all the latest securities lending news and analysis

securitieslendingtimes.com
No nation is an island, and the Polish CSD has post-trade services to cater to all of Central and Eastern Europe, says KDPW’s Iwona Sroka
In a region as geographically, culturally and economically diverse as Asia, funds passports have a tricky road ahead if they’re to redefine the industry
Amid cross-border restrictions and tightened belts, Luxembourg’s kingdom of real estate investment won’t be crumbling any time soon
The Chinese market has taken a knock to its confidence, but despite its size, it is still merely an emerging market, and must take these setbacks in its stride
Rich in sunshine, cork hats and tired clichés, Australia’s funds industry doesn’t buck the trend, boasting record levels of assets under custody
As the Saudi Arabian stock exchange finally opens its doors to foreign investments, the influx from abroad will be in baby steps, not leaps and bounds