The Financial Regulator has relaxed its rules on the labelling of Irish authorised investment funds, with effect from 1 September 2010, and will now permit the sole name of an investment manager in the title of a sub-fund within an umbrella structure.
This welcome development will enable promoters and investment managers to avail of the efficiencies and structure of an umbrella platform without needing to set up a stand alone framework, with its associated costs. It shows, once again, the Financial Regulator's flexibility in adapting to changes in the marketplace, while maintaining a sound and appropriate regulatory environment.
The Financial Regulator will require that the name of the umbrella structure contain the promoter's name or brand name and that any supplement for that sub-fund states the name of the promoter clearly on the supplement cover.
Heretofore, the Financial Regulator only permitted the name of an investment manager to appear in the name of an investment fund (or in the name of a sub-fund within an umbrella structure), where the investment manager was majority owned by either the promoter of the investment fund or by the promoter's parent.