The Irish Stock Exchange ("ISE") has been in existence for over 200 hundred years and is recognised worldwide as the leading centre for listing investment funds with over 3,000 funds/subfunds listed. The demand for the ISE's listed product is investor driven and appeals to managers all around the globe. Currently there are funds managed from 40 plus countries admitted to its regulated market.

A listing on the ISE offers a number of advantages and key marketing tools.

Since the first fund listed in Dublin, the ISE have listed funds from every major fund domicile. The ISE continues to provide a dynamic listing framework to meet market demands and trends.

An Irish listing is a speedy, efficient, cost-effective and consistent way of enhancing the attractiveness of a fund in the market place.

Arthur Cox Listing Services Limited ("ACLSL"), are a regulated and recognised sponsoring broker with the ISE and have a team of dedicated and professional listing executives with an in-depth knowledge of the ISE's listing rules. Fund promoters often ask us why an Irish listing is so popular and why they should list their fund on the Stock Exchange. Below we have outlined the benefits to listing on the Irish Stock Exchange:

A Listing Increases a Fund's Potential Investor Base

A listing facilitates the marketing of a security to specific categories of investors. Institutional investors, in particular, are often restricted or prohibited from investing in unlisted securities or in securities which are not listed on a recognised or regulated stock exchange.

The listing and admission to trading on a regulated market status appeals to investors as often legal, regulatory or internal mandate requirements restrict their exposure to unlisted securities.

Examples of Directives which preclude or restrict investment in unlisted securities include:

  • the Life Assurance Directive (Directive 2002/83/EC); and
  • the IORPS Directive (Directive 2003/41/EC).

Enhanced Transparency

In today's market, the desire amongst investors for transparency and credibility is most important.

Once listed on the Irish Stock Exchange, the listed investment funds' NAV is published on the ISE's website, together with all announcements and circulars. This information is fed to various data vendors such as Thomson Reuters and Bloomberg.

Such publication meets the requirement to publish the NAV for UCITS funds and the cost of such publication is covered by the ISE's competitive annual listing fee paid by the fund.

A wide range of fund investors require a publicly quoted stock exchange price for their investments. An ISE listing allows investors to mark their funds investments to market.

Tax Considerations

The ISE is a 'recognised stock exchange' for the purposes many tax rules around the globe including HMRC tax regulations where a listing can provide eligibility to certain funds for ISA and SIPP investments.

Also, Japanese tax rules provide more favourable tax treatment to Japanese individuals investing in listed investment funds.

A Listing Increases a Fund's Prestige and Profile

A listing on a long established, well regulated and recognised European stock exchange such as Ireland provides a valuable marketing tool for fund promoters. An ISE listing provides a 'stamp of regulation' for funds which may be domiciled in unregulated jurisdictions.

Ireland is a Member State of the European Union and the Irish Stock Exchange is, therefore, a recognised EU stock exchange.

The Irish Stock Exchange is also categorized as a recognised stock exchange by the Commission des Opèrations de Bourse in France.

As Ireland is a member of both the OECD and the EU, an Irish listing carries an associated layer of prestige.

ISE Represents Best Practice

The ISE's listing rules represent global best practice within the investment funds industry and these are updated regularly to take account of changes within the funds industry.

The listing rules govern, amongst other things, the suitability of the parties to a fund and a fund's investment diversification and financial reporting regime.

The disclosure and compliance required by the ISE's listing rules, for which a fund's directors take ultimate responsibility, offer transparency and a comfort factor to investors not necessarily available in unlisted funds.

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.