UCITS IV management Co

1. Assurance
Asset Management
UCITS IV
Management
Company
Domiciliation
PwC contacts: “The UCITS IV Management Going forward, Fund Managers will
Company passport aims have the option to centralise their
Ken Owens to help asset managers by asset management, administration,
risk management operations within
Tel: +353 1 792 8542 removing the burdensome one domicile.
Email: ken.owens@ie.pwc.com task of setting up multiple
Andy O’Callaghan
Management Companies”
Tel: +353 1 792 6247 Key Opportunities:
A key component to UCITS IV is the 1. Significant cost savings
Email: andy.ocallaghan@ie.pwc.com
introduction of the Full Management
Company Passport, a most
Pat Convery 2. One location for the primary
welcome development allowing Management Company
Tel: +353 1 792 8687
for the cross border management streamlining the authorisation
Email: pat.convery@ie.pwc.com
of UCITS funds located in other procedures across all jurisdictions
jurisdictions, effectively one location
for the Management Company 3. One service centre
managing a host of UCITS across
the various member states. Under
the current UCITS III regime, fund
promoters need to establish a fully
What does this mean for
fledged Management Company in Investment Managers?
every Member State where their With the new found freedom of
funds are located except in the the UCITS IV regime, investment
case of a self-managed UCITS managers are starting to look
fund. According to the Exposure at restructuring their current
draft from the EU Commission, corporate structures. This may
this is estimated to generate costs involve amalgamating or moving
in the range of €500,000 to €1 existing management companies.
million per Management Company Consideration needs to be given to;
a year. Additionally, out of the top
30 asset management groups in • Where is the most appropriate
terms of cross-border distribution location for the Management
of UCITS, 50% have management Company?
companies in 4 countries or more. It • Whether it is right to move the
is recognised that substantial cost Management Company?
savings will be gained by operating
from one core centre. • What will be the benefits to
moving/consolidating existing
Management Companies?
First for business. First for people.

2. UCITS IV
Management Company Domiciliation
What is our response? • Fiscal environment promoters operating and distributing
PwC can assist by completing a UCITS fund which includes the
• Governmental incentives
feasibility study which will give following services:
a recommendation on the most • Ease of passporting the relevant
appropriate jurisdiction best activity 1. Tax Services which include:
suited for the location of the • Availability of qualified resources/
core Management Company and • Company redomiciliation and
cost of those resources
respective administration services. migration services including
• Internal corporate governance consideration of location in group
This review will include criteria such requirements structure;
as: • Provision of ongoing regulatory
Our Services comprise of the and tax reporting to ensure
• Tax and Regulatory environment compliance with cross border
following:-
• Legal and political environment requirements in each relevant
PwC has a fully integrated Asset jurisdiction;
Management service offering for
Example of current & revised structure under new regime
Iceland Iceland
Russia Russia
Norway Norway
Sweden Sweden
Denmark United Denmark
Ireland United Ireland Kingdom
Kingdom
Neatherlands Poland Neatherlands Poland
Germany Ukraine Ukraine
Germany
Belgium Austria Belgium Austria
Lux. Lux.
Hungary
Hungary
France Switzerland Romania France Switzerland Romania
Italy Italy
Portugal Spain Portugal
Greece Spain Greece
Malta Malta
2009: 8 different Management Companies, 8 locations 2011: 1 Management Company, 1 location

3. UCITS IV
Management Company Domiciliation
• Group restructuring with • Government incentives & local Who would this be of interest
integrated advisory and tax inducements; to?
services; and
• Staffing & resource capabilities; • Investment Companies entering
• Product structuring of a cross the UCITS market for the first
• Local compliance & corporate
border fund platform with a single time; and
governance requirements; and
management company.
• Investment Managers with
• Marketability & passporting
2. Assessment & feasibility study existing UCITS funds, which have
arrangements.
on rationalisation of EU domi- several Management Companies
ciled activities – with focus on 3. Business Rationalisation Ser- scattered around Europe who
the following:- vices:- may want to consolidate their
management companies into one
• Product Structure and Investment • We will assist with the transfer of domicile.
Strategy existing services to the primary
core business location of choice
• Marketing & Distribution
and best suited to your corporate Current status and expected
• Management Company & related structure and strategy; timeline
Administration activities The Commission has until July
• Services will include corporate
2011 until UCITS IV has to be fully
As part of the feasibility study, we set ups, liquidation of existing
implemented into the national
will analyse the determining factors structures, regulatory and
legislation of the 27 Member States.
for domiciling each entity structure advisory assistance; and
The final text has been adopted
in a particular member state. Our
• Consolidation of existing by the Commission on 22nd June
review criteria will consist of the
Management Company 2009, with an enforcement date
following:-
Structures into one key structure anticipated within 3 to 4 months.
in primary location best suited
• Assessment of the regulatory
to the organisation structure and
environment;
management company resources
• Review of the taxation and requirements
implications;
• Consideration of the legal and
political principles;
Timeline for UCITS IV implementation
Feb 2001 Feb 2004 2004- July 2008 31 Oct Oct - Nov 2008 2-3 Dec 2008 22 June 1 July 2009 1 July 2011
2008 2008 2009
Implementing measures
Implementation in MS
Adopt. of End of Consul- EU Com CESR Work on ECOFin UCITS
UCITS III impl. of tation proposal Advice on Compromise by meeting Directive
states
UCITS III in process re for a recast MCP Council of EU adopted
MS UCITS IV UCITS
Directive

4. pwc.com/ie
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