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
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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: [email protected] | Website: www.dmsoffshore.com
But the reality is that a change in legislation is where
FINANCE
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