Ireland Eases Qualified Investor Fund Approvals

by Carla Johnson, Investors Offshore, London

20 February 2007

The Irish Financial Regulator has agreed, in principle, that a collective investment scheme which markets solely to qualifying investors (QIF) may be authorised on receipt and without a detailed review of the application for authorisation.

The proposals have been put to consultation. The authorisation would be given on condition that the parties involved meet the necessary authorisation criteria, are approved in advance of the application and confirmation is received regarding compliance with the authorisation criteria.

In order that this decision can be implemented, it is necessary to introduce a revised application form for QIFs which will be designed inter alia to establish the parameters within which a QIF can operate. The Authority also intends to introduce a new Guidance Note to assist applicants in making formal applications for authorisation under the collective investment scheme legislation and to deal with issues which are not addressed in the application form.

The Financial Regulator has had discussions with the Irish Funds Industry Association in relation to the revised application process. On the basis of those discussions it is accepted that these proposals do not warrant a lengthy consultation period (in fact, it closes today) and that the revised regime should be introduced as soon as possible.

An application for authorisation must be made in writing specifying the legislation under which authorisation is required. In the case of a unit trust or common contractual fund, the application must be made jointly by the proposed management company and trustee /custodian. The letter of application must be accompanied by the standard application form, duly completed and all relevant documentation.

The application form requires certification in relation to the contents of the form and the QIF documentation. In the case of a unit trust or common contractual fund, certification must be made by the management company and trustee / custodian. In the case of an investment company, certification is required from the board of directors. However the custodian of the investment company is also required to provide confirmation in relation to the provisions of the custodian contract.

Applications must be filed no later than 3pm on the day before the proposed date of authorisation. Where applications are not in full compliance with the Financial Regulator’s requirements authorisation will not proceed. Late and incomplete applications will be returned in order that documents may be re-dated or otherwise amended as necessary.

Letters of authorisation will issue by close of business on the day of authorisation.

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