ICAV
An ICAV — an Irish collective asset-management vehicle, so really, it should be called an ICAMV — is a specific type of Irish investment vehicle established under the Irish Collective Asset-management Vehicles Act 2015 (No. 2/2015) with effect from 12 March, 2015. Commentators expect the ICAV structure to become the default structure for new asset management funds in Ireland.
ICAVs:
- are cheaper and easier to administrate than corporate fund vehicles;
- are not subject to company law provisions designed for normal trading companies (ICAVs will not be corporations under Irish companies legislation);
- can be structured to “check-the-box” for treatment as a partnership or disregarded entity for US federal tax purposes;
- qualify for the same attractive Irish tax regime as corporate fund vehicles.
- will not be subject to risk spreading/diversification requirements.
- can prepare accounts at umbrella or sub-fund level.
- will be available to investment companies from other jurisdictions who wish to re-domicile n Ireland.
ISDA netting category: Investment fund, though ideally opinion should specifically refer to ICAVs.