The Irish and Chinese financial regulatory authorities have signed an agreement that will allow Chinese investors to invest in Irish-domiciled fund
The Irish and Chinese financial regulatory authorities have signed an agreement that will allow Chinese investors to invest in Irish-domiciled funds, and open up Irish-managed and administered funds to one of the world’s largest pools of private capital, according to the Irish Funds Industry Association.
The Irish financial regulator, IFSRA, has signed a memorandum of understanding with the China Securities Regulatory Commission and China Banking Regulatory Commission, that will enable Chinese investors to invest in Irish-domiciled Ucits-compliant as well as non-Ucits investment products for the first time.
Chinese investors are now able to access internationally distributed investment funds domiciled and serviced in Ireland through the Qualified Domestic Institutional Investor regime.
“This is further demonstration of the proactive commitment of the Irish government and authorities to ensure Ireland continues to develop as a domicile of choice for the international investment fund community,” says IFIA chief executive Gary Palmer.
“In a globally competitive marketplace it highlights the government’s ongoing commitment to developing the Irish financial services industry. This agreement with China will provide a significant opportunity for the manufacturers and promoters of Irish investment funds.”
Ireland now services around 8,000 funds with total assets exceeding USD2trn. The jurisdiction is the largest European domicile for money market funds, as well as the largest centre for alternative investment fund and ETF administration in Europe, and the Irish Stock Exchange is the world leader in the listing of investment funds.
Nearly 350 asset management firms use Ireland as a domicile and distribution centre for their funds, and almost 700 new funds were established in 2007, a growth rate of 17 per cent. The Irish funds industry is now the single largest employer within Ireland’s international financial services sector.
“Undoubtedly, this will strengthen Ireland’s attractiveness and standing as a domicile of choice for investment funds,” Palmer says. “Economic and market uncertainty has further strengthened investor appreciation for regulated and listed funds, and Ireland is ideally positioned to address this need.”
The Irish Funds Industry Association is the representative body of the international investment fund community in Ireland, representing custodian banks, administrators, managers, transfer agents, fund promoters and professional advisory firms.
