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Cross-domicile funds

Dublin / New York, April 10, 2024

The management of cross-domicile funds presents a complex set of challenges and opportunities for fund managers operating in the global investment landscape.

For expert perspectives, we’re speaking with three members of our European team who have been instrumental in our expansion of Waystone Administration Solutions in EMEA: Gavan McGuire, Managing Director Europe; Edward Hamilton-Russell, Head of European Sales; and Mark McKeary, our newly appointed Director.

Q1: Welcome, Mark. Can you share insights into the unique challenges of managing cross-domicile funds?

Mark: "Managing cross-domicile funds comes with its set of challenges, primarily in adhering to the diverse regulatory frameworks, legal structures, and tax regimes across jurisdictions. These complexities demand continuous vigilance and the ability to adapt quickly. Despite these hurdles, the pursuit of cross-domicile funds opens up substantial opportunities for innovation and growth, particularly through the strategic use of technology to enhance operational efficiency and compliance."

Q2: What are the primary hurdles in establishing a cross-border fund?

Ed: "The establishment of cross-border funds involves navigating through several hurdles, starting with the intricate KYC and bank account opening processes. These are often made more challenging by stringent AML regulations that differ significantly from one jurisdiction to another. Additionally, the selection of a domicile is crucial, as it involves a careful assessment of legal and regulatory considerations, which can greatly impact the timeline and complexity of fund setup."

Q3: How do regulatory changes and domicile selection impact fund establishment timelines?

Gavan: "Regulatory changes, including the evolving pre-marketing and ESG regulations, pose significant challenges, necessitating fund managers to stay abreast of the latest developments to avoid delays. The choice of domicile also plays a pivotal role, as shifting from one jurisdiction to another mid-process can introduce further delays. Engaging with experts familiar with the target jurisdiction's specific requirements is essential for developing accurate timelines and minimizing unforeseen hurdles."

Q4: Considering the current global economic climate, how do cross-domicile funds stand to benefit investors?

Mark: "In today's volatile economic environment, cross-domicile funds offer investors the advantage of diversification, not just in terms of asset types but also in reducing geographical risk. This can help mitigate risks associated with any single market or region. Additionally, by tapping into various jurisdictions with different regulatory regimes, investors can gain access to wider opportunities and potentially higher returns, which are crucial for optimizing investment portfolios in uncertain times."

Q5: How do you foresee the future of cross-domicile fund management evolving in the next few years?

Ed: "The future of cross-domicile fund management is poised for significant growth, driven by increasing globalisation and more sophisticated investment strategies. We expect to see a surge in the use of technology and digital platforms to streamline fund management processes, enhance compliance, and improve investor engagement. Moreover, with the evolving regulatory landscape, agility in adapting to new regulations will be key to success."

Q6: In the broader industry, what strategies are important for ensuring compliance and operational efficiency across different jurisdictions?

Gavan: "Within the industry, a proactive and well-informed approach to compliance is essential, with firms leveraging extensive global networks to anticipate and adapt to regulatory changes in each jurisdiction. Integrating advanced technological solutions is also key, facilitating streamlined operations, data accuracy, and effective communication across borders. These strategies are critical for maintaining operational efficiency and compliance, allowing firms to concentrate on investment strategies rather than administrative hurdles."

Q7: Can you elaborate on the importance of adapting to cultural and operational differences in cross-domicile fund management?

Mark:Adapting to the cultural and operational elements of each jurisdiction is important for building trust and creating efficiency. It's not just about the numbers; it's about understanding communication preferences, investment practices, and market dynamics. Our global presence and local expertise enable us to provide services that are not only efficient but also culturally and operationally aligned with each market.”

Q8: Technology plays a crucial role in managing the complexities of cross-domicile funds. How is Waystone leveraging technology to address these challenges?

Ed:We use secure data storage, advanced analytics, and cloud computing to enhance data management, risk assessment, and compliance monitoring. This technology provides our clients with a competitive edge in a fast-evolving market, addressing the complexities of cross-domicile fund management head-on.”

Q9: "How does the recent expansion of the team in Europe contribute to enhancing operations in EMEA and Waystone’s approach to managing cross-domicile funds worldwide?"

Gavan:Expanding our EMEA team marks a significant step for us, particularly in supporting clients with cross-domiciled funds. Most recently, I'm thrilled to welcome Mark and his deep expertise to our team. It's through the collective strengths of team’s deep expertise and global footprint combined with our award-winning product suite, quality service and technology that Waystone Administration Solutions empower fund managers to excel in the competitive global market."

To learn more, please contact:

Mark McKeary

Mark McKeary,
Director Europe, EMEA
Administration Solutions
T: +44 (0) 7605 650 183

Gavan McGuire

Gavan McGuire
Managing Director, EMEA
Administration Solutions
T: +44 (0) 2033 182 737

Ed Hamilton-Russell

Edward Hamilton-Russell
Head of Business Development, EMEA
Administration Solutions
T: +44 204 558 7033

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