Strategic Management Solutions

Our Management Company (ManCo) ensures an efficient operating model.

Our Management Company (ManCo) ensures an efficient operating model.

  • With increasingly stringent requirements from regulators, it is expected that many Irish Self-Managed Investment Companies (or SMICs), will either create their own ManCo or appoint a third-party ManCo. Here’s how our management company services can help you meet your regulatory responsibilities and provide opportunities for future growth:

  • Substance

    Our ManCo services have been structured to provide genuine substance in terms of staff and expertise, capital adequacy and rule out conflicts of interest. We have over 35 full time AMX employees in Ireland, including experienced designated persons as required by the CBI for each mandated key management function and 3 independent non-executive directors.

                  

  • Skill-base

    AMX provides ManCo services to asset managers globally, taking on all AIFMD and UCITS management company responsibilities. This frees asset managers to do what they do best: manage their clients’ investments.

How can AMX support your ManCo needs?

  • Stability

    AMX is a trusted partner, backed by Willis Towers Watson, a leading global advisory, broking and solutions company that has 45,000 employees serving more than 140 countries and markets.  We have a commitment to offering to high quality service and assurance of long-term viability with future growth potential.

  • Technology-driven governance

    Our technology-driven governance offers an efficient oversight function reducing the data burden on the investment manager.

  • Opportunity for growth

    AMX provides an institutional platform that gives investors and investment managers a better way to do business with each other. Asset managers that use the AMX platform are able to leverage AMX’s fund structures that optimise investor tax outcomes, our global distribution capabilities, our technology-driven investor reporting tools and our counterparty negotiating power.

     

    For more information about how we can help, download our brochure.

ManCo FAQ

The Central Bank of Ireland (CBI) has been increasing the level of governance required from Irish investment funds. There is now more scrutiny of substance, capital, internal controls, delegate oversight and staff expertise. In particular, the expectation is that during 2020 the CBI will require Irish Self-Managed Investment Companies (SMICs) to establish their own ManCo or appoint an external ManCo.

Regulators want to ensure that ManCos are fully resourced to deal with the every changing regulatory landscape and to have genuine substance in the domicile where the ManCo is established. The CBI expects Irish based ManCos to have experienced staff and operational presence in Ireland and not have “letter-box” entities.

Two key options exist:

  1. Direct application to the CBI for authorisation to set up a ManCo requires the fund manager to staff up and build infrastructure and operations in Ireland. While this approach retains control in-house, the trade-off is that it can be time-consuming and costly, with significant capital requirements, and approval by the CBI is not guaranteed.
  2. Managers can contract a third-party management company (ManCo) to leverage off that infrastructure. Appointing a ManCo acts as an additional layer of governance between the directors and the fund and is a lower-cost approach that can ensure regulatory compliance. The trade-off here is that the governance and oversight of the fund becomes the responsibility of a third party ManCo.

Establishing and running a SMIC model may prove to be a very high and complex cost in an enhanced regulatory environment in which ManCos are now being asked to operate. Against a backdrop of increasing regulation and, in particular, the outcome of the CBI’s CP86 review later in 2020, a thorough review of any existing SMIC model is necessary in order to determine whether it is adding value and is fit for purpose in the long term.

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