KB Associates has successfully advised asset managers on the establishment of funds in all major jurisdictions, including Ireland, Luxembourg and Cayman. KB Associates utilises its expertise and experience to assist asset managers with the set-up process and advises on a wide variety of UCITS and AIFs including long/short, ETFs, hedge funds, fund of funds, credit funds, private equity funds, loan origination funds and property funds. KB Associates has particular experience in the use of the Irish Collective Asset-management Vehicle (“ICAV”), Common Contractual Fund (“CCF”) and Unit Trust through its Irish based Management Company and the Société d’investissement à Capital Variable (“SICAV”) and the société en commandite spéciale (“SCSp”) through its Luxembourg Management Company.
KB Associates’ independence and in-depth understanding of the capabilities of administrators, depositaries, custodians, law firms, audit firms and prime brokers ensures that expert advice is provided to managers seeking to identify the most appropriate service providers for a particular fund.
Asset managers wishing to establish investment funds in Ireland or Luxembourg require an approved management company. KBA’s Irish management company is authorised by the Central Bank of Ireland and its Luxembourg management company is authorised by the Commission de Surveillance du Secteur Financier (“CSSF”).
Both the Irish and Luxembourg based management companies support UCITS and AIFMD compliant funds. By appointing a management company, an asset manager avoids both the costs and the risks associated with operating a subsidiary in an overseas jurisdiction. The asset manager also frees itself from the requirement to set aside capital. Where appointed, the management company assumes responsibility for all local regulatory and compliance requirements including the performance of the UCITS and AIFMD managerial functions.
The authorisation process for funds utilising the management company is swift. The management company’s UCITS/AIFMD governance documents are each pre-approved by the Central Bank of Ireland/the CSSF. A brochure outlining KBA’s management company services can be found here.
Asset managers utilising KB Associates management company in Ireland benefit from access to the following additional services:
The UCITS business plan/AIFMD programme of activity is prepared for the sole purpose of obtaining Central Bank of Ireland approval. There are many critical operational, compliance and administrative tasks which are not addressed in the business plan/programme of activity. Where the management company is appointed, KB Associates acts as an asset manager’s operations and compliance partner in Ireland. Examples of such support include overseeing the Value Added Tax (“VAT”) registration process, determination of VAT recovery rate, reviewing compliance with the Irish Funds Corporate Governance requirements, maintaining a comprehensive fund compliance calendar, and acting as fund System Administrator for Central Bank of Ireland reporting.
Irish domiciled funds must appoint two Irish resident directors. KB Associates provides directors with expertise in risk, investment management, finance, operations, and compliance. A brochure outlining the director services offered by KB Associates can be found here.
KB Associates assists asset managers with the implementation of their fund distribution strategies. KB Associates has in-depth expertise in this area and provides advice on distribution trends and share class design. KB Associates also advises on the appointment of distribution partners in many markets.
KB Associates provides a fund registration service to assist clients with the marketing of UCITS and AIFMD compliant funds on a cross-border basis. This service includes:
- Managing the initial registration of funds
- Maintaining the registration status on an ongoing basis
- Monitoring the registration jurisdictions for changes to local regulations
A brochure outlining the KB Associates fund registration service can be found here
KB Associates offers specialist MLRO services to funds, it operates a dedicated four person MLRO team. This service operates independently of a regulated fund’s administrator/transfer agent. The MLRO monitors the administrator’s AML procedures, carries out on-site inspections, reviews the AML documentation on file, reports to the Board of the fund and provides AML training. A brochure outlining the KB Associates MLRO service can be found here.
Irish Company Law requires every company to have a company secretary. KB Associates provides a dedicated corporate secretary service to investment companies and management companies, both UCITS and AIFs. A brochure outlining the KB Associates company secretary service can be found here.
KB Associates provides a risk management service to both UCITS and AIFs enabling such funds to comply with UCITS and AIFMD regulations. KB Associates’ risk management service includes the performance of detailed on-site reviews of the risk management processes employed by funds’ investment managers, the determination of the risk profile and appetite of each fund, the setting of risk limits for each fund and the implementation of procedures to ensure that all applicable risks pertaining to each fund can be identified and monitored. A brochure outlining the KB Associates risk management service to AIFs can be found here. Similar services including the development and maintenance of a fund risk framework are provided to UCITS.
“KB Associates has a three person GDPR compliance team. On appointment, KB Associates conducts an inventory for each fund to determine what personal data is held and if processing activities are GDPR compliant. KB Associates then produces a register of personal data, a data protection policy and investor notices for inclusion in application/subscription forms. On an ongoing basis, KB Associates provides a Data Protection Compliance Consultant (“DPCC”) to keep these documents up to date and to ensure the fund/management company complies with GDPR in all respects.
A brochure outlining the KB Associates GDPR compliance service can be found here.
A summary brochure outlining the Irish management company services can be found here.
Further details on our existing Luxembourg funds can be found here: