Ireland takes on Cayman for hedge fund business

| 21/12/2009

Cayman Islands News, Cayman Islands business news(CNS): The Irish government has passed legislation that will make it easier for funds in offshore locations such as the Cayman Islands to move to Dublin. Ireland currently administers more than 10,000 funds, with around half of those domiciled in the jurisdiction. The move has come as some hedge funds and other types of alternative investments have begun to change their domiciles in response to recent G20 government crackdowns on the use of so-called “tax havens” following theglobal economic downturn.

The Companies (Miscellaneous Provisions) Act 2009, approved by the upper house of the Irish parliament on Friday,18 December,  will enable investment funds to re-domicile to Ireland “simply and efficiently”, the IFIA noted.

Currently, the Cayman Islands is home to the largest percentage of offshore-domiciled hedge funds, with an estimated 67% market share. And just as the Cayman Islands is making efforts to atttract adminstrators of funds to move to the jurisdiction where their fund are domiciled, the Irish are attempting to attract adminstrators to domicile what they adminster to Ireland.

The move has been welcomed by the Irish Funds Industry Association, and IFIA Chief executive Gary Palmer said that, although legislation already was in place to facilitate fund re-domiciling in Ireland, specific modern legislation was needed.

“Achieving the stated objective of providing a clear and simple framework for the re-domiciliation of investment funds will add further efficiencies for the benefit of both investors and industry alike,” he added.

In recent months, say industry commentators, European investors have become increasingly focused on regulatory security for hedge funds. “What was a whisper has become a shout,” said Palmer.

A forthcoming European Union directive on alternative investment funds has proposed banning the marketing of funds not domiciled in a member state, providing further impetus for fund managers to consider moving onshore

According to the IFIA, the new legislation had been drafted specifically to allow a fund structured as a corporate entity in another domicile to re-register in Ireland with its original corporate identity retained, ensuring continuity of activity and continuation of arrangements. The organisation stated that the new law simplifies certain elements involved in re-domiciling, including the ability to re-domicile a fund following a single meeting of shareholders in the jurisdiction from which the fund is seeking to move.

“The simplified process should thus reduce the burden and cost of re-domiciling by eliminating unnecessary shareholder meetings, notary declarations, certificates and reports,” the IFIA noted.

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  1. Anonymous says:

    These comments are ridiculous.  The commenters obviously shouldn’t live in Cayman as it seems they have no regard for the Cayman Islands.  Not that Cayman is all gravy and that I would be ignorant to troubles here.  However, our entire economy rests in this sector and without the financial services (which comprises of more than just funds but a large part so) we as the people who live here are in some serious trouble.

    We do NOT need folk like these who attitude rips the morale of those who strive to do well in these islands.  We do NOT need to be hammered to nothing because we have strived in the financial sector.  Cayman has been hated because of the prosperity in this area and yet we still continue to enhance and redevelope our services to meet tightened regulation and those who seek to have a piece of the pie we enjoy.

    Not that this wealth has been properly distributed but without any of it there is NO distribution any where at all and thus results in further unemployment, crime and poverty.  Why don’t you negative bunch quit your jobs and leave, whether your expat or Caymanian.  You would easily be replaced and I’d rather have a so called ‘lazy’ kid straight out of highschool that does just enough not to get fired than someone who seems to work hard but doesn’t have this Cayman’s best interest at heart and is working to it’s demise instead.


  2. Anonymous says:

    No!  Funds must stay here so we can fleece them directly and indirectly to pay for the bloated civil service.  How dare they move because of market pressures.

    • Anonymous says:

      And even as we speak, new positions in the civil service are being created. Who said there was a moratorium or we were bankrupt?

  3. Anonymous says:

    Yeah — that Ireland place is soo far away. Probably don’t even have conch fritters or turtle stew!

    Hopefully all the other jurisdictions will do the same — where’s you financial services industry now?

    Thankfully Cayman will have a nice berthing facility thanks to one rich person.

    • Anonymous says:

      Re 15:13

      True but they do have proper Guinness, not the stuff that is sent around the world. Where is my plane ticket

    • Anonymous says:

      If you are not happy here why stay?!?!?  You complain about this and complain about that, Cayman is too expensive, the people are not nice…. and on and on but you are still here.  The same plane that brought you here can take you back…. I came to Cayman by pain not by plane and here I will stay through thick and thin, obviously you came here to fatten your pocket and then move on so why not do that…..  Yes we have problems and we have much more to come, but by the help of our Almighty God we will weather themas we have done many times before.  If you don’t want to be part of the solution, please don’t be apart of the problem……

      A true Caymanian, heart and soul!!!


      • Anonymous says:

        if you don’t like it leave….. they typical intellctual response from a local

        you always know when they have lost an argument…..

  4. Anonymous says:

    Why would any fund want to leave the Cayman Islands and move all the way to Ireland when they can move to the Turks & Caicos which is much closer and has now been bleached white by the Governor representing the UK.

    Get the point???