Asset Management

Asset Management update - July 2016

VAT: Management of Special Investment Funds

The Irish Revenue have released two new VAT manuals. The first update below includes Revenue’s position on the management of special investment funds following the decision of the CJEU in GfBk (Case C – 275/11). As a result of the judgment, the Irish Revenue accepts that investment advisory and information services and other non-specified services which meet a number of conditions fall within the activities of “management” for the purposes of the VAT exemption. This decision may be relied upon retrospectively and a potential reclaim for VAT may be made for up to 4 years.

Separately, the VAT Manual provides guidance on the updated VAT treatment applicable to management services supplied in relation to Self-Directed Life Assurance Bonds and equivalent products.

  • special investment funds following the decision of the CJEU in GfBk (Case C-275/11); and
  • VAT treatment of management services for Self-Directed Life Assurance Bonds.

 

Call for evidence on asset segregation

Further to its previous consultation on ‘Guidelines on Asset Segregation’, ESMA has issued a Call for Evidence on Asset Segregation and Custody Services. ESMA are looking for feedback on areas such as:

  • mapping of asset segregation models;
  • investor protection in the event of insolvency;
  • complexity / operational costs;
  • collateral / prime brokerage;
  • T2S;
  • impact on 3rd countries, and
  • optimal asset segregation for achieving a strong level of investor protection without imposing unnecessary requirements.

Responses to the Call for Evidence are due by 23 September 2016. Find out more

 

Advice on the extension of the AIFMD third country passport

On 19 July 2016, ESMA issued further advice on the extension of the AIFMD third country passport in respect of 12 non-EU jurisdiction namely, Australia, Bermuda, Canada, Cayman Islands, Guernsey, Hong Kong, Japan, Jersey, Isle of Man, Singapore, Switzerland, and the United States.

This advice clarified, amongst other points there were no significant obstacles regarding investor protection and the monitoring of systemic risk which would impede the application of the AIFMD passport to the United States (US). However, ESMA considers that in the case of funds marketed by managers to professional investors which do involve a public offering, a potential extension of the AIFMD passport to the US risks an un-level playing field between EU and non-EU AIFMs.

The market access conditions which would apply to these US funds in the EU under an AIFMD passport would be different from, and potentially less onerous than, the market access conditions applicable to EU funds in the US and marketed by managers involving a public offering. ESMA suggests, therefore, that the EU institutions consider options to mitigate this risk. Find out more

 

Brexit – impact on Irish Asset Managers

The implications of the “leave” vote for the broader financial services regulatory framework post BREXIT and the corresponding effects for Ireland are difficult to forecast. Asset management is an area which is heavily regulated at EU level leading to potential uncertainty surrounding what will happen to the UK's asset management offering. Find out more