Irish Funds Industry Association in pact with Chinese counterpart

The umbrella group for the Irish funds industry has signed a pact with its Chinese counterpart to forge closer ties between the sectors in both countries.

The move is seen as key to positioning Ireland as a target market for the growing number of Chinese asset managers looking to internationalise their business.

In Beijing this week the Irish Funds Industry Association (IFIA) signed a memorandum of understanding with the Asset Management Association of China (Amac), the body that represents the fund industry in China.

The IFIA said the agreement would encourage greater international capital flows, presenting greater opportunities for investors and growth for the industries in both countries.

On a practical level it means both agencies will share industry data, exchange information on regulatory developments and promote sound practices to improve investor protection.

Capabilities

“There are a large and growing number of Chinese asset managers looking to internationalise their business, and the capabilities we have in Ireland can help them to do that,” said IFIA chief executive

Pat Lardner

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Amac is a self-regulatory body with authority to register and issue licences to the China's asset management industry. It plugs directly into China's overarching financial regulator, the China Securities Regulatory Commission.

“Because Amac has direct links to the regulator in China we view this agreement as a way of increasing the general level of co-operation between Ireland Inc and the Chinese authorities.”

China is looking to internationalise its currency by allowing greater flows of capital in and out of the country, and has begun to gradually open up its capital markets to foreign investors.