ASSET MANAGEMENT AND INVESTMENT FUNDS

Establishing an Alternative Investment Fund Manager in Ireland

Under the Alternative Investment Fund Managers Directive 2011/61/EU (“AIFMD”), an alternative investment fund manager (“AIFM”) is a legal person whose regular business is managing one or more alternative investment funds (“AIFs”).

An AIFM is responsible for the investment management functions of portfolio management and risk management in relation to the AIFs it manages, and may also perform additional functions such as administration, marketing and other activities relating to the AIFs.

To establish an AIFM in Ireland, an application for authorisation must be submitted to the Central Bank of Ireland (the “Central Bank”).

An authorised AIFM may also obtain an extended authorisation to act as a UCITS management company under the UCITS Directive. This type of management company is colloquially known as a SuperManCo as its management extends to both UCITS and AIFs.

An AIFM may also be authorised to provide individual portfolio management (“IPM”) and/or “non-core” services of investment advice, safe-keeping and administration, or reception and transmission of orders in relation to financial instruments. This authorisation is subject to additional requirements, particularly in relation to staffing and substance.