A & L Goodbody are delighted to announce after extensive and detailed submissions made to the Irish Financial Services Regulatory Authority supported by State Street International (Ireland) Limited that the Irish Financial Services Regulatory Authority now recognise the ability of a UCITS III fund to invest in financial indices such as a hedge fund index notwithstanding that a UCITS III fund may not or is restricted from investing directly in hedge funds. Prior to this development the Irish Financial Services Regulatory Authority had long held the view that a UCITS III Fund could only invest in financial indices where the securities comprising the index were securities in which a UCITS fund could invest directly and despite submissions by other parties they had not been prepared to move from this interpretation. We challenged this position and our opinion which was supported by Gerard Hogan Senior Counsel was persuasive in the Irish Financial Services Regulatory Authority altering its position. We expect to be launching the first product in the next few weeks. For further information or advice you may contact any member of the Investment Funds group.

Irish Investment fund market continues to grow

Ireland’s investment fund market grew by 11.2% in the first quarter of 2004 according to figures produced by FEFSI (Federation European de Fonds et Societe d’Investissement). This compares with worldwide investment fund growth of 7.1% during that period.

In addition, the Irish Stock Exchange has become the largest exchange for investment fund listing in the world. The Irish Stock Exchange are of the view that this reflects an efficient business friendly listing regime.

Irish Government urged to adopt tax friendly approach to financial services

Recent reports have urged the Irish Government to assist in the development of the Irish Financial Services Centre by adapting tax friendly approaches to financial services such as the elimination of capital taxes on the subscription of share capital. Changes to the withholding and stamp duty tax regimes and the rules covering the deductibility of interest paid outside the State were also urged. These changed would be designed to encourage asset management and hedge fund activities to move to the Republic. Reports also identify mass risk in retail insurance as a sector within the financial services industry which is particularly open to expansion. The report, commissioned by IDA Ireland, is currently being considered by the IFSC clearing house group which is comprised of representatives from industry and government.