DEUTSCHE Morgan Grenfell is planning to move all its funds administration activities from London into Dublin's International Financial Services Centre. The move is expected to lead to the creation of up to 40 new jobs in Dublin.
The London based investment banking arm of the Deutsche Bank already employs from people at the IFSC. It is the one of the largest funds administrators in the IFSC, with assets of over $7 billion under administration.
Subject to final regulatory approval, Deutsche Morgan Grenfell is to move thirty UK funds with an estimated net asset value of about £3 billion to the IFSC, according to the specialist monthly newsletter on the IFSC, Finance Dublin.
The move will mean that all Deutsche Morgan Grenfell's fund administration and custody/trusteeship will be carried out from its ISFC base. Deutsche Morgan Grenfell Ireland chief executive Mr Paul McNaughton said the move represents the first really big transfer of non Irish domiciled funds into the IFSC. The new funds will remain domiciled in Britain but the administration work involved will be carried out in Dublin.
"It is a big message to us all that Dublin's attraction as a funds administration centre is not really the tax situation, but the quality of its staff. It confirms Dublin's position as a funds administration centre in the true sense, rather than as an offshore funds administration centre," he said.
In another move Deutsche Morgan Grenfell has appointed the former head of DMG Ireland's legal and compliance operations Mr Willy Slallery to head its Worldwide Mutual Funds Compliance division. Mr Slattery was deputy head of banking operations at the Central Bank until early 1996 when he joined DMG. He will be replaced at DMG Ireland by Mr Michael Whelan who was chief executive of the Irish Futures and Options Exchange between 1993 and 1995.
Funds under management at Dublin's International Financial Services Centre have increased significantly over the past year. Funds valued at about £21 billion are managed by IFSC companies, an increase of 65 per cent on the previous years levels.
Total fund numbers jumped by 18 per cent to 723 over the past year and the average fund size increased by 40 per cent, according to Fitzrovia's Dublin Fund Encyclopedia.
Deutsche Morgan Grenfell Ireland is the largest asset administrator in the IFSC. In the past year the firm almost doubled the amount of funds its administers from Dublin to just over $7 billion.
Its custodial services operation where it holds assets which are managed by another company holds funds of $6.3 billion, up from $3.2 billion a year earlier.
