Top Tips for Asset Managers

Top-Tips for Start-Up Managers

Prospective new investment managers coming to market will be faced with an array of key decision points such as: (i) where to set-up; (ii) fee structures in mind; (iii) what is the right type of fund structure and liquidity terms that fit best with your strategy; and (iv) what is “sellable” based on your anticipated investor demand.

Here are some top-tips to consider to ease the initial stages of the journey.

What should we consider in relation to the Investment Manager?

1. Business Model

For the remainder of this article we focus mainly on the own manager set-up.

2. Operational infrastructure

3. Branding

4. Substance / Staffing

5. Ongoing Requirements

Next Steps

As a starting point, reach out to various parties in the industry to get more information. Take note of two final key tips:

• The right legal counsel: It is important that you select the right law firm to support your business journey from inception and beyond start-up. Beyond providing sound legal guidance, the right firm should have a good overview of regulation but also market terms as they evolve, within and beyond Ireland, and have relationships with other service providers and contacts within the industry which it can leverage to your advantage. International coverage is also a significant advantage.

• The right service providers: Consider seeking advice from counsel and explore their relationships/experience to date with service providers in the market. Get recommendations and second opinions.

Why Choose Ireland?

A responsible, regulated, on-shore jurisdiction, Ireland is always first in class in terms of the adoption and implementation of global, regional and/or multilateral legal, regulatory and taxation related initiatives.

There are many reasons why Ireland ranks as the first choice for start-up managers; below is a snapshot:

1. Sound and robust regulatory framework: founded on principles of openness, transparency and investor protection/robust and efficient regulation, which facilitates market and product developments while protecting investor interest/accessibility and responsiveness with the CBI.

2. Attractive tax regime: internationally recognised as a highly efficient tax jurisdiction – Irish regulated funds are exempt from Irish tax on income and gains derived from their investments and are not subject to any Irish tax on their net asset value.

3. International reach and recognition: committed member of the EU providing full market access/major hub for cross-border distribution.

4. Top Calibre Service Providers: highly experienced service providers (depositaries, administrators, auditors, legal advisers); excellent operational infrastructure (specialists in IT and telecommunications and data protection).

5. Specialist Workforce: favourable demographics and excellent educational system; plentiful supply of top quality people with young, highly skilled workforce with a positive, can-do work attitude.

More information for asset managers

For more information and resources for asset managers, click here, or contact one of the co-authors.

James McKnight, Managing Associate, and Liane Müllers, Supervising Associate, Simmons & Simmons

1 Companies Registration Office Ireland webpage: https://www.cro.ie/

2 CBI Fund Management Companies – Guidance: https://www.centralbank.ie/docs/default-source/regulation/industry-market-sectors/funds/ucits/guidance/fund-mancos-guidance.pdf?sfvrsn=4

3 CBI Fitness and Probity for Regulated Financial Service Providers: https://www.centralbank.ie/regulation/how-we-regulate/fitness-probity

4 Corporate Governance Code for Collective Investment Schemes and Management Companies: https://files.irishfunds.ie/1432820468-corporate-governance-code-for-collective-investment-schemes-and-management-companies.pdf

5 CBI webpage on Investment Manager & Investment Advisor: https://www.centralbank.ie/regulation/industry-market-sectors/funds-service-providers/investment-manager-and-investment-advisors

6 CBI discussion paper on Outsourcing – Findings and Issues for Discussion: https://centralbank.ie/docs/default-source/publications/discussion-papers/discussion-paper-8/discussion-paper-8---outsourcing-findings-and-issues-for-discussion.pdf?sfvrsn=12

7 CBI webpage on Additional Supervisory Levy: https://www.centralbank.ie/regulation/how-we-regulate/fees-levies/additional-supervisory-levy

8 CBI Guidance on the Industry Funding Levy: https://www.centralbank.ie/regulation/how-we-regulate/fees-levies/industry-funding-levy/guidance