Investment Manager & Investment Advisor
In accordance with the provisions of the UCITS Directive and AIFMD, where an investment fund proposes to delegate the investment management function, the mandate may only be given to entities which are authorised or registered for the purpose of asset management and subject to prudential supervision. Where the proposed investment manager is not located in Ireland, and is given to a third-country undertaking, cooperation between the supervisory authorities concerned must be ensured. Supervisory cooperation generally takes the form of a memorandum of understanding between both jurisdictions. The Central Bank of Ireland has entered into a number of MOUs, a full list of which are available here.
Clearance of Investment Managers
Applications for clearance to act as an Investment Manager may take two forms;
1. Full Review - Non EU Based Applicants
To apply for appointment as an investment manager to an Irish investment fund, the applicant must complete and return the Application Form below together with any additional documentation required.
From 20 March 2017 applications for clearance of Non-EU Based entities should be completed through the online application process.
Where an investment manager is located outside of Ireland, the Central Bank must be satisfied that the firm is appropriately regulated in its Home State. Specifically, the firm must be authorised and subject to prudential regulation by its Home competent authority. The online application for clearance must include contact details of the Home competent authority.
Information concerning the applicant’s expertise, integrity and adequacy of financial resources is also required to be submitted as part of the online application. This information should include, inter alia, background details and experience, organisational structure, to include details of shareholders, assets under management and latest audited financial statements.
2. Fast-track application - EU Based Applicants
Investment managers or sub-investment managers which are one of the following entities will not usually be subject to an additional regulatory review process by the Central Bank:
- UCITS management companies authorised under Directive 2009/65/EC;
- Investment firms authorised under Directive 2004/39/EC (MiFID) to provide portfolio management;
- Credit institutions authorised under Directive 2006/48/EC having the approval to provide portfolio management under MiFID; or
- externally-appointed AIFMs authorised under the AIFMD.
Fast-track applications should be emailed to firstname.lastname@example.org. The email should include the name and registered address of the applicant, details of the applicant’s regulatory status, its home state regulator and contact details (to include name, address and email address) of the relevant contact within the home state regulator.
Clearance of Investment Advisors
The Central Bank distinguishes between an Investment Advisor with discretionary power and an Investment Advisor with no discretionary power.
Where an Investment Advisor to an investment fund will act in a discretionary capacity, the Central Bank will consider such application as an Investment Manager and the entity must comply with the regime outlined above.
Where an Investment Advisor will not act in a discretionary capacity to an investment fund, no clearance of the entity is required. In this instance the Investment Advisor should submit the Investment Advisory agreement along with confirmation from the manager/directors of the investment fund that the advisers in question will act in an advisory capacity only and will have no discretionary powers over any of the assets of the investment fund. The confirmation should also provide that the investment advisory agreement does not:
- provide for any discretionary management powers;
- conflict with regulations and conditions applicable to the relevant investment fund.
Notification by Investment Managers Post-Clearance
An investment manager cleared to act for an Irish authorised fund should inform the Central Bank in advance of any upcoming changes to its:
- Regulatory status;
- Registered address.