Irish Collective Asset-management Vehicle (“ICAV”) Update – July 2016

ICAV Background

The ICAV Act 2015 put in place a legal framework for a corporate fund vehicle in Ireland that is tailor-made for investment funds. The ICAV is available under both the UCITS and AIFMD regimes and may be set up as a standalone or umbrella structure.

The ICAV has a number of benefits over traditional fund structures:

  • Tax transparent entity for US federal income tax purposes. This allows US taxable investors to avoid certain adverse tax consequences that would normally apply to profits generated from “passive foreign investment companies”
  • Bespoke corporate structure that avoids the need for compliance with certain Irish company law requirements, e.g. the requirement to hold an AGM. This results in reduced administrative obligations and costs
  • ICAV sub-funds may produce their own sub-fund by sub-fund financial statements (with different year ends and/or accounting standards)

KB Associates and the ICAV

Key Milestones:

  • March 30th 2015 – KB Associates provides consulting services for the establishment of the first ICAV in Ireland, this was also the first AIFMD compliant ICAV in Ireland.
  • May 1st 2015 – KB Associates provides consulting services for the establishment of the first UCITS ICAV in Ireland.
  • June 30th 2016 – KB Associates provides consulting services for the migration of the first Jersey funds into Ireland under the ICAV Act

Download our Irish Collective Asset-management Vehicle (“ICAV”) Update – July 2016 here

KB Associates’ Services

KB Associates offers a range of services to investment funds including:

  • The provision of UCITS/AIF management company services
  • The provision of designated persons to perform UCITS business plan and AIFMD programme of activity management functions
  • The provision of UCITS/AIF operational support

If you would like to discuss any issues raised in this article, please feel free to contact Mike Kirby (+353 1 667 1980), Peter Northcott (+44 203 170 8813) or Mike Parton (+1 345 946 4224).