IRELAND: Qualify treat.

(From The Lawyer)

Qualifying investor funds look set to take the Irish financial markets by storm, says Patricia Taylor

Since 14 February 2007 the Irish Financial Services Regulatory Authority has implemented a filing-only authorisation process for Irish qualifying investor funds. The aim of this change in the authorisation process is greater speed to market of a fully regulated product. This very welcome development follows the Irish government's initiative as set out in its strategy document for the international financial services industry in Ireland, 'Building on Success'.

Qualifying investor funds (QIFs) are non-UCITS (Undertakings for Collective Investment in Transferable Securities) collective investment schemes that may generally be invested in only by investors who meet a minimum high-net-worth test - individuals with a minimum net worth, excluding main residence and household goods, of E1.25m (GBP856,100); or institutions that own or invest on a discretionary basis at least E25m (GBP17.12m); or the beneficial owners of which are qualifying investors in their own right - and also make a minimum initial investment of at least E250,000 (GBP171,200).

The conditions and restrictions relating to investment objectives and policies and leverage that apply to retail funds are disapplied in respect of QIFs. QIFs may be established as open or closed-ended investment companies, unit trusts, common collective funds or investment limited partnerships.

The change to the current system of authorisation for QIFs will be that, subject to the promoter, directors and relevant service providers (primarily the investment manager, administrator and custodian) to a QIF having the appropriate authorisation/approval of the financial regulator, the QIF fund product itself will be capable of being authorised by the financial regulator on a filing-only basis. Applications must be filed no later than 3pm on the day before the proposed date of authorisation/approval and letters of authorisation/approval will be issued by close of business on the day of authorisation/approval.

This revised process will also apply to the addition of new sub-funds and to revised prospectuses/supplements for existing QIFs.