13th March 2015

The ICAV has arrived

The Irish Collective Asset-management Vehicle (ICAV) Act has been signed into Law by the Irish President. The ICAV Act provides for the establishment of a new form of corporate structure that is designed specifically for investment funds, both UCITS and AIFs, and to meet the changing needs of the global funds industry. The ICAV minimises the administrative complexity and cost of establishing and maintaining collective investment schemes in Ireland.

A key feature of the ICAV is a streamlined and relatively straight forward procedure for the conversion of an existing Irish investment company to an ICAV and for re-domiciling of existing investment funds from other fund jurisdictions to Ireland as ICAVs. An ICAV can also make an election under the US “check the box” rules to be treated as a “pass through” entity for US federal income tax purposes. The ICAV sits alongside the other available fund structures in Ireland, namely the variable capital company (VCC), the unit trust, the common contractual fund (CCF) and the investment limited partnership (ILP).

The Central Bank of Ireland (Central Bank) acts as the incorporating, authorising and supervisory body for the ICAV and has published an Irish Collective Asset-Management Vehicle (ICAV) Information Note.