Funds Industry Report - Flipbook - Page 20
Sean Hawkshaw KBIGI
KBIGI is in the investment management
employment and new entrants. Some of the
sector which is distinct (but closely linked to)
new entrants have set up Dublin operations
the funds industry which has been so
as part of contingency planning. The regula-
successful in Ireland. We are the ‘f ront of
tor is quite rightly insisting on the rms
house’ bit and to a large extent agnostic to
having ‘substance’ and my concern is that at
the type of fund vehicle which is used to
this stage not all the new entrants have the
deliver the product to many of our clients.
requisite level of business activity at this
That said, over the past 10 years the whole
stage to support this. A lot depends on if, how
area of operational due diligence has become
and when Brexit plays out and particularly
hugely important to institutional investors
the future arrangements between the UK
and their advisors. To a certain extent this
and the EU in terms of passporting and dele-
was accelerated by the global nancial crisis
gation.
where we had systemic failures with many
large and previously trusted rms getting
This is already creating some salary ination
into difculties and disappearing altogether
and staff turnover in the established rms.
or cutting back on their investment in technology and people which are essential in the
rapidly evolving funds industry. At KBIGI we
Opportunities For Funds
Businesses In Ireland
outsource the funds administration and
there is an onus on us to have very compre-
A lot depends on whether the UK imple-
hensive oversight and due diligence practic-
ments a regulatory regime which effectively
es and procedures in place. This is a hot topic
mirrors the EU or does something different.
with regulators globally and the CBI is no
It’s not inconceivable that they could go for a
exception and they are putting considerable
‘light touch’ regulatory framework which
focus on outsourcing.
would signicantly change the landscape.
Either way Irish businesses have always been
At KBIGI we work with fund administration
exible and good at adapting to changing
rms in multiple jurisdictions and regulatory
circumstances. One key advantage we have
environments. All have their peculiarities and
is that with UK out of the EU Ireland will be
pros and cons. More generally I think the
the only jurisdiction with a common law
funds industry in Dublin is in good shape -
framework. This is very signicant for US
standards are very high with top class service
rms either looking to put boots on the
providers and specialist legal rms providing
ground in the EU or partner with existing
support. There’s been some very innovative
players.
work done on investment vehicles and the
ICAV structure has really gained momentum
Personally I believe there’s a real opportunity
in the past year or so. Financial services is one
for Ireland to position itself as a centre for
of the few industries in Ireland which is likely
‘green nance’ and already there has been
to be a net beneciary from Brexit in terms of
some good progress on this front. This could
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