Third party management company

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 Fund Management Companies (FMCs) including 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 40 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. As a result of CP86 and the ‘Dear Chair’ letter, greater scrutiny of substance, capital, internal controls, delegate oversight and staff expertise is required. The letter provided clarity around the requirement to have at least three full-time employees (FTE). This means that SMICs and legacy Management Companies now have a quantitative figure for the level of substance required to address any deficiencies. Given the magnitude of cost, including the requirement to have designated persons with appropriate experience, many FMCs will need to consider a third-party management company solution.

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.

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