Ireland signs MoU with Chinese Financial Regulatory Authorities
23/10/2008

The IFIA is delighted to announce that earlier this morning in Beijing the Chairman of IFSRA, the Irish financial regulator, Mr Jim Farrell together with his counterparts in the China Securities Regulatory Commission (CSRC) and the China Banking Regulatory Commission (CBRC), signed a Memorandum of Understanding formalising the relationship and co-operation between the two jurisdictions.

While this welcome development will provide a number of mutual benefits and opportunities the most significant and immediate is that Irish domiciled investment funds will be available for distribution to Chinese investors through the Chinese QDII regime. The QDII regime is only available for investment funds that are domiciled in a jurisdiction that enjoys the relevant Memorandum of Understanding with China.

Announcing the two MoUs to a very large gathering of senior representatives from the Chinese authorities and industry, the Taoiseach, Mr Brian Cowen, noted "The memoranda are a further expression of the already strong ties that exist between Ireland and China and our wish to further develop these links especially in the financial services arena. The memoranda will give Chinese investors and companies access to investment opportunities in Irish funds and to the globally recognised capabilities of the Irish funds industry. From a standing start, almost 20 years ago, the investment funds industry in Ireland has been a remarkable success story. Ireland is now an established international fund jurisdiction with in excess of $2 trillion assets under administration. Ireland has a demonstrable expertise in the administration of investment funds. Investment funds require a sophisticated operational support structure and this is available in Ireland. At the last count over 340 leading asset management companies have chosen Ireland as a domicile for their 4,000 investment funds, operating at a scale that delivers economic advantages to their international investor base. The relationship between Ireland and the international investment funds industry has been mutually beneficial. Ireland has contributed to the global investment funds industry through the provision of a modern and up to date legislative framework and tax environment which is focused on the realities of international finance and the requirements of international best practice. The investment funds industry is supported by a strong, credible and responsive regulatory regime."

Also in attendance and representing the funds industry were Mr Seán Páircéir, Chairman of the IFIA and Mr Michael Jackson, Vice-Chair of the IFIA.

We understand this is a significant first, as Ireland is the first jurisdiction to sign agreements with both Chinese regulatory authorities where no previous agreements were in place. This very positive and welcome development will be of particular benefit and provides a significant opportunity for the manufacturers and promoters of Irish investment funds.

Press release announcing the MoU with China

Photos

From L to R: Seán Páircéir, Chair, IFIA, Gary Palmer, Chief Executive, IFIA, Michael Deasy, Director, IFSRA and Michael Jackson, Vice-Chair, IFIA

Signing of the Memorandum of Understanding with the Chinese regulatory authorities