Funds & Derivatives in Ireland
For more than 25 years, Ireland has been the leading domicile of choice for internationally distributed investment funds, covering a wide range of fund types. Data published by the Irish Fund Industry Association showed record levels of assets and net sales in Irish domiciled funds, with assets in Irish domiciled funds as of 31 August 2019 standing at a record €2.8 trillion reflecting the consistent and continuing attractiveness of Ireland, the third largest investment fund location globally.
Why choose Irish Law and Irish lawyers for Funds & Derivatives?
The advantages of Irish law and the Irish legal system are numerous and include the following:
Similar legal systems: The Irish and English legal systems are very similar. This will be an important consideration for parties wishing to switch the governing law of their contracts from English law to an EU law, and wishing to minimise the necessary changes to documentation and the consequential operational and risk management adjustments.
English speaking: As an English speaking country, Ireland is highly accessible to English speaking clients, lawyers and other professionals accustomed to working through the English language. Documents governed by Irish law will naturally be drafted in English. If those documents are the subject of Irish litigation, court proceedings will be conducted in English.
Deep talent pool: With over 14,000 professionals employed exclusively in the servicing of investment funds, the Irish funds industry is a centre of excellence with expertise that spans a wide range of services including in particular financial services documentation experts.
Experienced Judiciary and Litigators: The Irish judiciary and Senior Counsel are well versed in investment funds law following several recent investment fund related cases.
Effective Commercial Court: The commercial list of the High Court in Dublin has proven to be a highly efficient and effective venue for parties to resolve complex, high-value investment fund and financial services disputes. Fund promoters considering choice of law and choice of jurisdiction in anticipation of Brexit should consider Ireland as their jurisdiction of choice. Among EU jurisdictions, Ireland offers an unrivalled level of continuity in terms of the forms and language of documents currently governed by English law; and in relation to court proceedings arising from disputes, very similar processes and procedures.
How will BREXIT impact on the law governing Funds & Derivatives?
At present, Irish law governs most of the structural and asset custody documentation for Irish domiciled funds. Following Brexit, there will be a trend towards more of their trading, servicing and hedging documentation also being governed by Irish law, lessening the current preference for English law. One area of particular interest is derivatives documentation, and similar types of contracts such as those governing securities sale-and-repurchase agreements (‘repo’) and securities lending agreements. Such transactions are generally documented under industry standard master agreements, which in Europe were previously governed by English law. In anticipation of Brexit, ISDA now offer EU law governed alternative versions, including Irish law. Given the uncertainties surrounding the use of English law and the English courts by EU investment funds following Brexit, Irish law is also likely to become the norm for Investment Management Agreements and Prime Brokerage Agreements.