Ireland has already earned a reputation as being an important centre for financial services by offering a number of financial solutions for investment structures which operate both within and outside the European Union. This strategy has been very successful for European, Southeast Asian and North American Investors.
Ireland is a member of the EU and the only English speaking member of the Eurozone. In addition it is a founder member of the OECD. Like the UK and the U.S., Ireland is a common law jurisdiction and its legal concepts will be recognised by most investors. It is a good location for private wealth management and succession rights. Ireland is not a tax haven jurisdiction and is on the G20 “White List”, making it more attractive for investment in the current environment.
The Irish Financial Regulatory Services Authority (the “Financial Regulator”) has established a regulatory unit for authorising Sharia compliant investment products in Ireland. The Financial Regulator has confirmed that it will proactively engage with its regulatory counterparts in the Middle East, North Africa and other jurisdictions. This coincides with the United Arab Emirates, Bahrain, Kuwait, and Saudi Arabia due to sign double taxation agreements with Ireland by the end of 2009.
The Irish Revenue Commissioners has recently published guidance on the Irish tax consequences of Sharia Funds, Ijarah as finance leases, operating leases and hire purchase contracts and Takaful (Insurance) and Retakaful (Reinsurance) Arrangements. Broadly, these are given the beneficial tax treatment that is given to their western equivalents.
The listing of the first Sukuk transaction on the Irish Stock Exchange (the “ISE”) in 2005 enhanced Ireland’s profile in the global Islamic finance industry and is a perfect illustration of the flexibility of the ISE towards Sharia compliant products.
Listings
Arthur Cox provides listing services through Arthur Cox Listing Services (“ACLS”), which was approved by the Irish Stock Exchange (the “ISE”) as an authorised sponsor in early 2004 to provide listing services for specialist debt securities and investment funds. Our aim is to ensure an efficient and professional listing services drawing on a wealth of experience in dealing with regulatory and procedural requirements of both the Financial Regulator and the ISE.
ACLS has been involved in the listing of Islamic Finance Securities since 2006 and has valuable knowledge and expertise in listing these products. In addition to listing Islamic Finance Securities, ACLS has in-depth experience of listing specialist debt securities and investment funds on the ISE and have a world-wide client base, covering Europe, the United States, Russia and the Middle East. ACLS have been the leading listing agent by volume for the ISE for the last three years.
We were responsible for listing the first Islamic Finance Programme on the ISE in 2007, the Oasis Certificate Programme arranged by Citibank.
Leasing
Arthur Cox has considerable experience in setting up leasing platforms in Ireland, acting as Irish legal and tax advisors to Irish lessors and lessees. Advising on domestic and cross-border leasing transactions, contractual and corporate issues, joint ventures. We have advised on the tax and legal aspects of many tax based structures, joint ventures and a range of corporate and contractual structures.
Subsidiary Holding Companies
Ireland has firmly established itself as a jurisdiction for the establishment of Irish companies as a European/regional holding company. Favourable tax laws allow the structures to be, in most cases, tax neutral and a large number of exemptions and reliefs from capital gains tax on inbound dividends and withholding tax on outbound interest and dividends. Ireland’s holding company regime provides attractive and efficient solutions to Middle Eastern investors who wish to use Ireland as a base to invest in Europe or North America or as a means of managing their assets and/or risks.
Personal Trust Structures
Ireland has a very well developed infrastructure and legal system in relation to trusts. There are significant tax and planning benefits with using an Irish trust. For example, where the settlor and beneficiaries are not resident, ordinarily resident or domiciled in Ireland and the trust assets are not Irish situate property, trusts established and administered in Ireland would not give rise in most cases to Irish tax.
Financing
Our experience ranges from plain vanilla funds and financing structures to innovative and highly structured products. For example, we structured and implemented Ireland’s first CMBS. As part of this pracitce area we also advise on commodity, foreign exchange, inflation, index linked, interest rate, credit and equity derivatives as well as repo and stock lending agreements across the range of industry documents including ISDA, GMRA, GMSLA, IFEMA, FOA, TBMA, OSLA with related collateral arrangements.
Funds
Ireland has over 20 years experience in dealing with a wide-range of fund products and was the first regulated jurisdicton to commit to alternative investment funds. Arthur Cox is responsible for establishing the first exchange-traded fund in Dublin and arranging the first redomiciliation of a Cayman fund to Ireland. Arthur Cox also has experience in establishing funds which are Sharia compliant, including equity funds and Morabaha transaction funds.
- Legislation Bulletin, Spring 2010
- Corporate and M&A, Company Compliance and Governance, Banking, Financial Regulatory, Technology, Intellectual Property, Inward Investment, Listing Services, Litigation and Dispute Resolution, Communications and Broadcasting, Pensions, Tax, Tax Disputes, Asset Management and Investment Funds, Financial Services Litigation, Middle East
- 17.05.2010 | Format:
