the annual ifia global investment funds conference 2012 asisa assembly 2014 wednesday, 25 th june...

The Annual IFIA Global Investment Funds Conference 2012

ASISA Assembly 2014

Wednesday, 25th June 2014

Panel 3 – Introductory Remarks

Pat LardnerChief Executive - Irish Funds Industry Association


The Irish Funds Industry


Ireland – A Snapshot


Ireland’s development as an international financial services centre

Why did it happen?

How did it happen?

What can South Africa learn from our journey so far?

The original “vision” for the Centre was straightforward

Generate employment of at least 7,500 jobs

To put Ireland on the global financial services map

To regenerate a derelict part of Dublin


Regeneration of Dublin’s Docklands


Backdrop to the creation of an IFSC


Key thoughts at the time which were invaluable

Make it different from other financial services centres

It wasn’t to be a substitute for the domestic financial services industry

Focus on substance, avoid brass plates

Tax would be important but there had to be more to it than that

Senior and uncompromising backing to get it going “the Committee where there was nowhere to hide” “the facilitator”

A joint venture between the Public & Private Sectors


Year Key Event(s)

1984 • Minister for Labour hosts the “Shelbourne Dinner”

• Fine Gael/Labour White Paper on Industrial Policy

1985 • GEISCO commission study looking at Ireland as an Intl. Treasury Centre

• PwC Report commissioned by NCB & Youth Employment Agency

1986 • Increasing debate within Government and Opposition on the idea of a financial services centre

1987 • Feb - IFSC becomes part of Election Manifestos / Change of Government• April – first meeting of the IFSC Committee*• July - Finance Act passed containing key elements of the IFSC “plan”• Sept – first applications for licences• Oct – first licence granted / Black Monday• Dec – IDA gives 18 projects to go to Department of Finance for licensing

* Later re-named the Clearing House Group

Getting it off the ground


Getting it off the ground

Year Key Event(s)

1988 • Jan - Custom House Docks Development Authority established• Sept – Foundation stone laid in the Docklands• Nov – Central Bank of Ireland begins publishing draft regulation

1989 • Feb – Daiwa agree to move to the IFSC• May – Finance Act• June – UCITS Directive comes into effect in Ireland• Summer- Commerzbank and AIB announce JV for the IFSC• Sept – first Irish domiciled UCITS created – also first fund listed on the ISE

1990 • Dec - EU grants extension for licensing (4) & tax rate (5)

1992 • Ireland becomes part of the Single European Market– remaining exchange controls disappear

1994 • Nov – launch of new Development Plan for Docklands• EU grants extension to IFSC licensing regime to 2000

1998 • July 1998 – approval by EU of 12.5% Corporate Tax Rate

1999 • Firms start to establish outside of the IFSC


Public/Private Sector Co-operation

Public Sector

Private Sector *

* Private sector members change over time


Selling the Idea

The “Three Wise Men” Official backing and high level contacts

The IDA (Industrial Development Authority) Pre-existing expertise in attracting FDI to Ireland

“Team Ireland”


What were we selling?

Access to the European Market

A young, educated workforce

Low Costs

Low Tax Environment

Regulatory Environment

Commitment from Government

Infrastructure : language/legal/telecoms


Selling the Idea – Case Study (IFIA & IDA)

14 offices globally


Factors that drove growth of the funds industry in Ireland

development of regulated investment product structures that could be distributed across markets(the passport)

other external factors growing investment markets globalisation of industry & UCITS

local factors a strong belief in having an open,

transparent and regulated approach a constantly developed legal and

regulatory environment to provide product solutions and distribution opportunities

expertise and experience in servicing investment funds


Today- the Reality

Key Facts500+ firmsTotal Direct Employment: 35,700Indigenous firms employ c. 6,000Firms operate in more than 20 counties Accounts for 10% of multi-national employment in IrelandContributes 7.4% of Irish GDPContributes approximately EUR2.1bn to the Irish ExchequerComprises 5% of all EU 27 cross-border financial services activityIreland is the 7th largest provider of wholesale financial services in the EU Ireland accounts for 5.35% of wholesale financial services in the EU


The Irish Funds Industry – Importance to Ireland

International industry based in Ireland meeting a global need (personal savings) exporting services (not dependent on local

demand) already internationally recognised & respected

Creates employment and revenues for the country

Fund industry performance remains strong

“Ireland has been through a very tough period in the past few years; we have grounds to be optimistic now on a number of fronts but in financial services the one constant has been the funds industry. The industry continues to create employment, to showcase our talents and to enhance Ireland’s reputation as a place to do business.”Mr. Michael Noonan, Irish Minister for Finance, June 12th 2013


Different Solutions

The industry in Ireland supports managers for both Irish domiciled funds but also in providing expert services where the fund is domiciled outside of Ireland.

Solutions are provided to managers across the full spectrum of investment strategies in a range of currencies (23) and languages (28) to target investors globally.


Relevance for South African Investors and Investment Managers

For investors recent experience has reinforced the value of operating with

partners in well regulated and reputable markets agenda of regulatory change will not end any time soon

For Asset managers the regulatory/product frameworks implicit in UCITS and

AIFMD have and can be a benefit innovative/flexible partners more crucial than ever

Ireland already successful across a range of funds & structures

Our capabilities are complimentary to those of the needs of the investors and managers we serve


Dimensions of Competitiveness

Source: Global Financial Services In ex, Long Finance


Thank you


ASISA Assembly 2014

Wednesday, 25th June 2014

Panel 3 – Introductory Remarks

Pat LardnerChief Executive - Irish Funds Industry Association

the annual ifia global investment funds conference 2012 asisa assembly 2014 wednesday, 25 th june...

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