Name
Global FinTech Guide
Country _ Name
Ireland
SectionTitle
Asset and portfolio management
Body
FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.

Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.

Introduction

Attitude of the country towards modern asset and portfolio management services

The Irish market has seen a significant influx of asset management firms setting up a presence in Ireland to ensure continuity of access to the EU.

In general terms, the regulation of investment firms providing investment services and activities (including portfolio management services) in relation to financial instruments is governed by Directive 2014/65/EU (MiFID II) which was transposed into Irish law by the European Union (Markets in Financial Instruments) Regulations 2017 (the Irish MiFID II Regulations).  Details in relation to the requirements of the Irish MiFID II Regulations are set out in section c. Financial advisory and broking services including robo advisory and auto-trading below.

In addition to investment terms, fund management companies can also be authorised to provide both collective portfolio management and individual portfolio management services.  Fund management companies in Ireland are subject to the UCITS (Undertakings for Collective Investment in Transferable Securities) and or AIFM (Alternative Investment Fund Managers) regimes. As well as being subject to the requirements that derive from Irish and European legislation, UCITS management companies and AIFMs are also subject to various other regulatory requirements based on the nature of their activities and the associated risks.



Legal affairs

Obligations and requirements to provide asset and portfolio management, or ancillary services described above

AIFMs are authorised under the European Union (Alternative Investment Fund Managers Directive) Regulations 2013 (the AIFMD Regulations) which transpose the EU Alternative Investment Fund Managers Directive (AIFMD) into Irish law.  UCITS management companies are authorised under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (the UCITS Regulations) which transpose the EU UCITS Directive into Irish law.
The final legislative text of Directive (EU) 2024/927 of the European Parliament and of the Council amending the AIFMD and UCITS Directive was published in the Official Journal of the EU on 26 March 2024. The amending Directive, known as AIFMD II, follows several years of legislative process. There hasn’t been a complete overhaul of the framework but rather a series of targeted amendments.

The key aspects of AIFMD II include:

  • an expanded list of permitted activities for AIFMs/UCITS management companies, improved data sharing and cooperation between competent authorities
  • the introduction of a loan origination regime for AIFs
The deadline for member state implementation is 16 April 2026.
For UCITS management company/AIFM authorisation in Ireland, the Central bank requires:

  • the applicant is a body corporate with registered and head office in Ireland;
  • the applicant meets the specific regulatory capital requirements (as outlined below);
  • its shareholders, directors and managers satisfy all fitness and probity requirements;
  • its directors and managers have sufficient experience in the type of AIF/UCITS being managed;
  • the group structure does not prevent effective supervision by the Central Bank;
  • satisfaction that the UCITS management company/AIFM will be able to meet the relevant regulatory requirements.
Capital requirements:

  • Self-managed AIFs/UCITS are required to have an initial capital of €300,000. An external UCITS management company/AIFM is required to have initial capital of at least €125,000 in place plus 0.02% of the value of the portfolios of the fund it manages in excess of €250 million, subject to a cap of €10 million.
  • There is an additional requirement for external AIFMs to have in place insurance for an amount equal to 0.90% of the Assets under Management (AUM) or alternatively to hold additional capital equivalent to 0.01% of the AUM.
The normal timeframe for getting authorised as a UCITS management company/AIFM is 4 to 6 months from the submission of a complete application to the Central Bank.



Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

No further information outside of that outlined above.



Economic conditions

Market size for asset and portfolio management services and biggest companies in this business area

There are 193 authorised and registered AIFMs, 87 UCITS management companies and 90 MiFID investment firms in Ireland at present.
According to the Irish Funds Industry Association, Ireland is a leader for both AIF and UCITS products. Total assets under administration are approx. €6.7 trillion. Irish domiciled funds amount to over €5.0 trillion. (7473-irish-funds-why-ireland-2025-euro-_web.pdf)
The total assets of Irish domiciled AIFs stand at approx. €930 billion. In excess of 40% of global hedge funds are administered in Ireland (https://www.irishfunds.ie/facts-figures/industry-statistics/irish-domiciled-aifs/f).



Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

The main investment trends appear to be in real estate, private equity, loan origination, private debt, and real economy assets.
Following the enactment of the Investment Limited Partnership (amendment) Act 2020, the ILP is becoming a fund structure of choice in Ireland for many international investment managers involved in the private equity and real assets sectors. This legislation, along with recent Central Bank guidance published relating to closed-ended AIFs, will ensure that the regulatory environment in Ireland caters for typical features of limited partnerships.

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