Mal­tese pri­vate bank plans to set up Dublin of­fice

The Malta Business Weekly - - FRONT PAGE -

A Mal­tese pri­vate bank owned by Aus­trian sav­ings bank Sparkasse Sch­waz is plan­ning to set up an of­fice in Dublin to pro­vide ser­vices to the in­ter­na­tional funds in­dus­try, ac­cord­ing to sources.

Sparkasse Bank Malta is un­der­stood to have ap­plied to the Irish Cen­tral Bank for au­tho­ri­sa­tion to es­tab­lish a busi­ness pro­vid­ing de­posi­tary ser­vices from Dublin to in­de­pen­dent fund ad­min­is­tra­tors.

De­posi­taries hold funds’ as­sets, ar­range the set­tle­ment of trans­ac­tions, and mon­i­tor and au­dit the funds to safe­guard against fraud, ac­count­ing er­rors or con­flicts of in­ter­est be­tween in­vest­ment man­agers and their funds.

The bank, which cur­rently has about $4.5 bil­lion of as­sets un­der cus­tody in Malta, is look­ing to repli­cate this op­er­a­tion in Ire­land, where funds hold­ing €2.4 tril­lion of as­sets are domi­ciled. The level of funds un­der ad­min­is­tra­tion in Ire­land, mainly in the In­ter­na­tional Fi­nan­cial Ser­vices Cen­tre, stands at €4.7 tril­lion, ac­cord­ing to the lat­est data from the Cen­tral Bank.

Sparkasse Bank Malta is un­der­stood to be tar­get­ing the smaller end of the de­posi­tary ser­vices mar­ket in Ire­land, and plans ini­tially to re­cruit up to six peo­ple, though this may grow to up to 60 peo­ple in time, ac­cord­ing to mar­ket sources. The bank de­clined to com­ment when con­tacted by The Irish Times.

“By choos­ing not to pro­vide other re­lated fund ser­vices such as fund ad­min­is­tra­tion or man­age­ment, we avoid po­ten­tial con­flicts of in­ter­est and fo­cus en­tirely on what we are hired to do, i.e. - safe­keep­ing, record keep­ing, mon- itor­ing and re­port­ing,” Sparkasse Bank Malta says on its web­site.

Irish Funds, the in­dus­try rep­re­sen­ta­tive body, said last week that that Ire­land is now the domi­cile for 5 per cent of world­wide in­vest­ment fund as­sets, mak­ing it the sec­ond-largest cen­tre in Eu­rope, af­ter Lux­em­bourg. As Brexit ne­go­ti­a­tions con­tinue, Irish Funds is con­tin­u­ing to see man­agers from around the globe look­ing to base their funds in Ire­land, the body said at its an­nual con­fer­ence in Dublin on May 17th.

Of the 38,000 peo­ple em­ployed in the fi­nan­cial ser­vices in­dus­try in Ire­land, more than 16,000 are di­rectly in­volved in the in­vest­ment funds in­dus­try, in­clud­ing fund ad­min­is­tra­tors, trus­tees, le­gal ad­vis­ers, au­di­tors, tax ad­vis­ers, com­pli­ance and other in­dus­try spe­cial­ists.

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