Funds and Financial Services Dispute Resolution

1. Introduction

The Irish funds industry has over the past twenty years established itself at the forefront on the global funds industry. Ireland is one the few locations worldwide where investment funds are established, managed and serviced in a regulated environment. The wide range of fund structures available in Ireland has facilitated the growth of the industry and US$1.2 trillion worth of assets are currently administered in Ireland.

2. The Financial Services Department

The Financial Services Department within Dillon Eustace comprises the largest investment funds team in Ireland, with over 35 lawyers, comprising Irish, US and UK qualified lawyers, acting for a wide variety of promoters, including banks, asset managers, corporates, insurers and pension schemes. The team advises on a full spectrum of Irish fund products from UCITS to alternative investment funds. Dillon Eustace act as legal advisers to more Irish domiciled funds (Fitzrovia 2006/2007) than any other law firm in Ireland. At present, a total of approximately seven thousand funds are administered in Ireland.

Dillon Eustace acts for many of the leading Irish investment managers and our international clients include GAM, Legal & General, Goldman Sachs, Morgan Stanley, Fidelity, PIMCO, Société Générale, Mellon Bank, AIG, Mediolanum, Close Brothers, Nomura, Nikko, Nissay Vanguard, Santander and many other leading international names.

Dillon Eustace is recognised as a market leader in the area of hedge funds and alternative investment products and has been responsible for the establishment of the majority of alternative structures established here in Ireland. Dillon Eustace also acts for many administrators and prime brokers to Irish domiciled funds.

We are also very active in the listing of funds and debt securities on the Irish Stock Exchange (the "ISE") having listed over 200 Irish and non-Irish funds on the ISE.

Through participation in Irish and international funds related fora – including the Irish Funds Industry Association, the Irish Government's Funds Group, the International Bar Association Investment Funds Committee and the Alternative Investment Management Association - we are focused on all areas of development in the investment funds arena. Additionally, we seek to offer clients a pan-European service through our alliance with the leading Luxembourg investment funds law firm, Arendt & Medernach.

3. The Dispute Resolution Department

The Disputes Resolution Department of Dillon Eustace has significant expertise in the area of commercial litigation including contractual disputes, competition issues, financial services law and general corporate law. The Department also acts for multinational corporates, financial services organisations, banks and investment management houses in relation to disputes concerning investment products, structured products, mutual funds, guarantees and indemnities and insider dealing. In doing so, the Department has worked closely with the Financial Services Department with respect to disputes and litigation involving regulatory and associated issues for investment funds and other financial product providers.

4. Our Experience

Our extensive knowledge and understanding of funds, financial services products, dispute resolution and litigation has ideally positioned Dillon Eustace to advise on all aspects of disputes arising in the funds and financial services industry.

Our experience includes:

  • Advising trustees, custodians and administrators on potential negligence actions in carrying out duties on behalf of investment funds;
  • Advising leading administrators in disputes arising from the calculation of a fund's net asset value;
  • Ensuring all fund service providers have complied with relevant money laundering legislative requirements;
  • Advising investment managers on the drafting of appropriate hedge fund disclaimers;
  • Resolving potential claims against administrators arising out of delayed subscription settlements, and
  • Advising major international banks in relation to insolvency issues.

The robust yet flexible regulation of the Irish Financial Services Regulatory Authority has assisted in the phenomenal growth in the funds industry in Ireland by providing guidance and certainty for all service providers in the carrying out of their functions. Whilst in Ireland disputes arising in the funds industry have largely remained out of the court to date, throughout the world actions against funds are becoming increasingly frequent. As a leader in the provision of legal services to the funds industry in Ireland, Dillon Eustace has the experience, expertise and resources to deal with any potential disputes that may arise and we would be happy to address any questions or queries that you may have.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.