Service Providers to an ILP
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GENERAL PARTNER
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The GP of an ILP is responsible for the management of the ILP. The GP has unlimited liability and is responsible for the debts and liabilities of the ILP. The GP of an ILP may be a corporate entity, a natural person or a partnership. The GP can be based in any jurisdiction. The board of directors of a corporate GP based in Ireland must include at least two Irish resident directors and one independent director (which may be one of the Irish directors). The GP is not regulated by the Central Bank but the directors of the GP are subject to the Central Bank's fitness and probity regime and must be approved by the Central Bank to perform a pre-approval controlled function. Information in respect of all directors (including personal details, qualifications and experience, other business interests, and any shareholdings held by them in the proposing entity) must be submitted to the Central Bank by the directors themselves via the Central Bank's portal. A change of the GP is subject to CBI approval. |
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AIFM
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An ILP is required, pursuant to AIFMD, to appoint an AIFM. The
AIFM is responsible for risk management, portfolio management, and
also generally, administration and marketing. An AIFM may delegate
risk management or portfolio management but not both.
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INVESTMENT MANAGER
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The AIFM may
perform the investment management role but in many cases an
investment manager is appointed by the AIFM. The investment manager
has discretionary authority to invest and manage the assets of the
ILP in accordance with the investment objective and policy of the
ILP.
If an
investment manager proposes to manage an Irish collective
investment scheme, such as an ILP, for the first time, the
investment manager will need to be cleared by the Central Bank. For
a non-EEA investment manager, it must submit a short application to
the Central Bank and must satisfy the Central Bank of its
experience and expertise and provide certain information including
financial statements and proof of existing regulatory licenses.
This process typically takes 4-8 weeks.
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ADMINISTRATOR
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The administrator is responsible for maintaining the books and
records of the ILP, calculating the net asset value of the ILP and
maintaining the limited partner register.
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DEPOSITARY
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The depositary provides custodial services and is responsible
for "safekeeping" the assets of the ILP. A depositary
also has certain oversight responsibilities with respect to the
ILP.
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INVESTMENT ADVISER
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An investment adviser is an optional service provider. An
investment adviser appointed by the investment manager provides
non-discretionary investment advice in respect of the ILP.
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AUDITOR
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An ILP must appoint an auditor to audit the financial
statements of the ILP.
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MLRO
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An ILP must appoint a money-laundering reporting
officer.
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COMPANY SECRETARY
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If the GP is a corporate entity domiciled in Ireland, it will
need a company secretary to maintain the books and records of the
GP.
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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
