DMS Offshore Investment Services ('DMS') Limited was
established in the Cayman Islands by Don Seymour in 2000. Over the
past 15 years it has grown into one of the industry's leading
fund governance firms with over 200 people.
One of the big focuses for the firm is ongoing regulation, in
particular AIFMD and FATCA. With respect to FATCA, DMS stole a
march on its competitors in 2014 by establishing a FATCA
Responsible Officer (FRO) role.
"Our principal, Don Seymour, identified FATCA as an area to
work on three years ago. We got the teams set up, the systems and
the processes set up so that when managers came to us, we were
ready from day one to support them in respect to FATCA
compliance," comments Derek Delaney, Managing Director of DMS
Offshore Investment Services (Europe) Limited.
Whilst over half of DMS Group's clients have decided to use
its FRO service, an equal amount of uptake has been seen among
non-DMS clients. Part of this growth has originated from legal firm
referrals, as Delaney explains: "Law firms would tell managers
that they needed an FRO in place, but when it came to internally
deciding who would take on that role a lot of these law firms began
referring clients to us. We have built a lot of law firm
relationships on the back of their endorsements of our FATCA
The FATCA solution is delivered out of DMS's Cayman, Ireland
and Luxembourg offices and supports all global funds. Whilst other
firms are still ironing out the creases of their US FATCA solution,
DMS has already moved on and developed the necessary policies for
UK FATCA and the OECD Common Reporting Standards.
DMS Group has also developed a suite of AIFMD solutions. Not
only does it have an AIFMD-compliant platform and registered AIFM
(DMS AIF Management Company) it also offers Annex IV reporting
"Even when clients have decided not to go with a full
European fund, they've still asked us to act as the Annex IV
reporting party. During January 2015, we did 216 filings. Now, we
are able to say to managers, 'We've got the AIFM in place,
the platform, we've gone through a successful round of
reporting, so any uncertainties that existed with AIFMD are now in
the past'. The only unanswered question is when the funds
passport will be made available to non-European managers,"
Year-to-date the firm has won 57 mandates across AIFMD and
UCITS, including one of the largest investment banks in the world.
"In addition, we have over 78 clients for whom we're doing
Annex IV and other global risk reports on EMIR, OPERA, CPO, etc. I
would estimate that we will have more than 100 AIFMD/UCITS clients
by the end of the first quarter 2016," adds Delaney.
"In addition to the mandates we've won, we've also
taken on mandates to provide risk management support to other
management companies; those where an investment manager has decided
to set up their own entity in Luxembourg and they are putting one
or two people on the ground but wish to delegate the risk
management function," states Nick Parkes, who heads up the
AIFM business in Luxembourg.
"The other function that has become a focus in
Luxembourg," continues Parkes, "is more qualitative, i.e.
can you identify a good trade. DMS can do this because we've
been working with an 8-person strong investment firm for a period
This means we are able to provide a real, qualitative oversight
of how managers are performing. That type of substance is really
resonating with the market."
On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).