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Transcript of 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 Annual IFIA Global Investment Funds Conference 2012
The Irish Funds Industry
Page 2
The Annual IFIA Global Investment Funds Conference 2012
Ireland – A Snapshot
Page 3
The Annual IFIA Global Investment Funds Conference 2012
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 DublinPage 4
The Annual IFIA Global Investment Funds Conference 2012
Regeneration of Dublin’s Docklands
The Annual IFIA Global Investment Funds Conference 2012
Backdrop to the creation of an IFSC
Page 6
The Annual IFIA Global Investment Funds Conference 2012
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 SectorsPage 7
The Annual IFIA Global Investment Funds Conference 2012
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
Page 8
The Annual IFIA Global Investment Funds Conference 2012
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 IFSCPage 9
The Annual IFIA Global Investment Funds Conference 2012
Public/Private Sector Co-operation
Public Sector
Private Sector *
* Private sector members change over timePage 10
The Annual IFIA Global Investment Funds Conference 2012
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”
Page 11
The Annual IFIA Global Investment Funds Conference 2012
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
The Annual IFIA Global Investment Funds Conference 2012
Selling the Idea – Case Study (IFIA & IDA)
14 offices globally
The Annual IFIA Global Investment Funds Conference 2012
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
Page 14
The Annual IFIA Global Investment Funds Conference 2012
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
Page 15
The Annual IFIA Global Investment Funds Conference 2012
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 Page 16
The Annual IFIA Global Investment Funds Conference 2012
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.
Page 17
The Annual IFIA Global Investment Funds Conference 2012
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
Page 18
The Annual IFIA Global Investment Funds Conference 2012
Dimensions of Competitiveness
Source: Global Financial Services In ex, Long Finance
The Annual IFIA Global Investment Funds Conference 2012
Thank you
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