Derek Delaney
Transcription
Derek Delaney
The Big Interview The Big Interview Derek Delaney is Managing Director of DMS Offshore Will Britain be part of trade agreements? opportunity is generated for a compliance firm as we How would the Brexit potentially affect the Investment Services (Europe) Ltd. and leads the firm’s Will Britain join other trading blocs? need to advise our clients on how to deal with these Alternative Will Britain reduce the ability of the smaller countries changes. This, for example, has seen DMS partner such as Ireland and Lux to veto certain rules and as the AIFM for a UK range of funds for one of Directive (AIFMD)? regulations that we tend to vote similarly on? our clients. UCITS, Non-UCITS, alternative investment vehicles This being said, there will also inevitably be benefits What general sense are you getting of business and private equity structures, he also serves as an and we have begun contingency planning to roll out leaders’ opinions on the Brexit? Is there a new products, if and when this change takes effect. sense of panic or are companies generally AIFMD/UCITS and Risk Management Services teams in Dublin, London and Luxembourg. A specialist in was a Global Product Manager, and was also Head of Business Solutions within the European Alternative administration companies, audit firms, etc. and they So it would change how UK managers have to are generally viewing Brexit as an industry disruption interact with AIFMD. This model has been bedded relationship between Ireland and the UK. Ireland is Among investment managers, we are seeing a split serving as a Senior Fund Accountant, and later as Senior used as a base for UK managers’ funds with which view. Managers see the disruption as an unwanted Manager. As Senior Manager he assisted with the set- they intend to target the non-UK market. Nothing distraction. However, they generally see most about a Brexit would change this as Britain, outside challenges as deriving from EU regulation and hence of the EU, could not be the domicile for an EU fund. feel that ultimately it may be best for them. business perspective. In short, there is no panic regarding the “ “ Brexit, and business looking forward into 2016. Brexit, but a real wait-and-see approach. Derek Delaney 32 exact same model. would see the strongest advocate for alternative funds leaving the EU, thus weakening its ability to directly impact ESMA’s guidance on AIFMD. This could be a longer term negative. Is there anything else you would like to add? In summary, I would say that we all operate in In short, there is no panic, but a real wait-and-see As such, change is in everyone’s blood – from the the Irish funds industry. What you will have is a approach. investment analyst, to the portfolio manager, the CEO positive. If UK managers are non-EU managers, then well This super serve culture is what I was brought into and A positioned to drive cultural change within a what I have maintained in DMS Europe. We have a consequences of the Brexit from a British company. What goals did you arrive with as very different model to our competitors; whereas they perspective. As a company based globally Managing Director of DMS Europe? will generally pitch consultancy services that result in and with yourself in Ireland, what is your their appointment at a cost to a manager, DMS will perspective? lot has been made of the potential DMS is one of the most established names in fund often engage with a client for over a year before we governance. We have arrived at that position through decide to ‘push the button’ on Europe. Because we Firstly, it would be a disappointment for Britain to a fundamental drive to super serve our clients, the have helped at every step of the way, we are viewed exit the EU; they are our closest neighbour in Europe, funds they invest in and their investment managers. as a partner and selected to be the European presence they are our leading trading partner and they are the for their fund. closest to us in terms of outlook and culture. This is true from a business as well as a cultural perspective. set up a European office to help our clients understand So I would say we do not drive cultural change, we UCITS and how to access Europe. It was on this basis maintain cultural awareness that DMS will always go Losing Britain from the EU would lead to several that I joined DMS to act as a value-add (yes, we did it that step further and if this is not for you, then DMS is consequences which will take years to sort out. Some free!) consultant to DMS’s client base. not the right place for you to be. pertinent questions remain: www.finance-monthly.com would see the UK post Brexit as very suitable for the So with this considered, it would not adversely impact they are not European managers and hence not AIF If Britain did potentially leave the EU, would Management Companies, so they would need to move tax operations to Ireland or more likely utilize third party for companies wanting to invest in Europe Irish-based AIF Management Companies to achieve generally? compliance services become harder the required European substance. As a consequence, over five years ago, DMS decided to AIF funds via the AIF Management Company. DMS an industry that survives and trades on volatility. Managing Director DMS O ffs h o r e I nve s t m ent S er v i ce s is managers to act as the European presence for their On a more strategic outlook basis, the UK leaving Finance Monthly about his role at DMS, the potential Director down already, however. For example, DMS has secured over 50 mandates from US investment outweigh any negatives. Consider, for example, the both middle office and NAV valuations. Here he talks to Managing managers, but this would take a number of years to proximity to Britain? employed with Citco Fund Services (Dublin) Ltd., first of fund industry to attempt to get equivalency for UK disproportionately affect Ireland given its No, I feel that the opportunity would actually far role would still need EU funds. I would expect the UK Most business leaders we speak to are in legal firms, Investment Services (AIS) division. He was also The managers would still need to access the EU, and so – do you think that a potential Brexit would that would create opportunity for them from a up of Citco’s Cork office, managing teams performing Managers effect. You are well versed in dealing with Irish funds He joined DMS from BNY Mellon (Dublin), where he Fund It would not have an immediate impact as UK certain that it will not happen? independent director on Luxembourg and Irish Funds. Investment It would mean an extra advisor needed and an extra and including all service partners from compliance firms, management companies, auditors, legal advisors and investment banks. Change is therefore viewed as not just a reality, but a necessity; without volatility, there can be no out performance. And every company should be backing Either of these scenarios would be excellent drivers cost; however, there are a number of parties set up for expansion of the Irish funds industry. to advise on this as the UK does have a different tax itself to generate Alpha in a volatile market. At DMS, system to the EU anyway. So I would not see this as a we welcome change and do our best to ensure we are significant occurrence. positioned to succeed. The British government has been bringing in and debating new tax rules for businesses, particularly small businesses, lately. Have these changes affected DMS at all? Is a lot of your time spent dedicated to keeping up with new changes? DMS performs client relationship management and business development primarily from the UK, so we have not been directly impacted. Email: ddelaney@dmsoffshore.com | Website: www.dmsoffshore.com But the reality is that a change in legislation is where FINANCE 33