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ASISA Assembly 2014

ASISA Assembly 2014. Wednesday, 25 th June 2014 Panel 3 – Introductory Remarks Pat Lardner Chief Executive - Irish Funds Industry Association. The Irish Funds Industry. Page 2. Ireland – A Snapshot. Page 3. Ireland’s development as an international financial services centre.

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ASISA Assembly 2014

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  1. ASISA Assembly 2014 Wednesday, 25th June 2014 Panel 3 – Introductory Remarks Pat LardnerChief Executive - Irish Funds Industry Association

  2. The Irish Funds Industry Page 2

  3. Ireland – A Snapshot Page 3

  4. 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 Dublin Page 4

  5. Regeneration of Dublin’s Docklands

  6. Backdrop to the creation of an IFSC Page 6

  7. 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 Sectors Page 7

  8. Getting it off the ground Page 8 * Later re-named the Clearing House Group

  9. Getting it off the ground Page 9

  10. Public/Private Sector Co-operation Public Sector Private Sector * Page 10 * Private sector members change over time

  11. 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

  12. 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

  13. Selling the Idea – Case Study (IFIA & IDA) 14 offices globally

  14. 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

  15. Today- the Reality Key Facts 500+ firms Total Direct Employment: 35,700 Indigenous firms employ c. 6,000 Firms operate in more than 20 counties  Accounts for 10% of multi-national employment in Ireland Contributes 7.4% of Irish GDP Contributes approximately EUR2.1bn to the Irish Exchequer Comprises 5% of all EU 27 cross-border financial services activity Ireland 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

  16. 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

  17. 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

  18. 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

  19. Dimensions of Competitiveness Source: Global Financial Services In ex, Long Finance

  20. Thank you

  21. ASISA Assembly 2014 Wednesday, 25th June 2014 Panel 3 – Introductory Remarks Pat LardnerChief Executive - Irish Funds Industry Association

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