Oising McClenaghan

Indirectly regulated AIF products, which are attractive for private asset investment strategies, have enjoyed significant growth in Luxembourg, the UK and Switzerland.

Oisin McClenaghan, partner in Ogier’s investment funds team, said: “An indirectly regulated funds regime should be given serious consideration.

“We would share the view of the Irish Funds Industry Association that there is a legitimate commercial reason for parties using unregulated structures, whether in Ireland or elsewhere.”

He made the comments ahead of a seminar organised by Ogier which will take place at Convention Centre Dublin on Thursday 14 November.

Finance minister Jack Chambers is set to deliver the keynote address, which will reflect on the government’s recent review of the funds industry.

The review concluded that while Ireland is well placed to grow in the funds and asset management sector, the emerging backdrop means that what has worked in the past will not necessarily work into the future.

In its submission to the review, Irish Funds noted that while Ireland compares favourably against other fund jurisdictions, a significant inhibitor to further growth is the length of time it takes to bring product enhancements or new products to market, due to regulatory and legislative requirements.

The Ogier seminar will focus on how the industry must evolve to support continued growth in the funds sector. 

Mr McClenaghan noted that the Irish funds industry lost ground to competitor jurisdictions due to delays in establishing a legal framework for investment limited partnerships (ILPs).

ILPs were finally rolled out in Ireland in 2020, and Mr McClenaghan gave credit to the finance minister for addressing ILP tax issues in Budget 2025.

“There is better understanding in the investor community of the ILP product and its availability, but it still hasn’t hit critical mass here,” he said.

“We are playing catch-up with Luxembourg on that. The recent budget addressed participation exemption to simplify and minimize ILP tax leakage.

“It is positive that the government is hearing what the industry is asking for and making these changes.”

Ireland’s market share for European-regulated funds is around 20 per cent.

Mr McClenaghan said: “We are excited about the opportunities in Ireland. The funds market is at a fairly mature stage, but we must be very nimble and adapt to innovative technologies.

“As a professional services firm, we cannot rest on our laurels. We must continue to innovate and evolve to meet the changing needs of the industry.”