A&L Goodbody LLP September 19, 2014 - Ireland The Central Bank of Ireland changes rules to permit managers to set up loan originating funds by For more information please contact a member of the Asset Management & Investment Funds Team The Central Bank of Ireland has today issued its feedback statement on Consultation Paper 85 dealing with loan originating qualifying investor alternative investment funds (QIAIFs). In the feedback statement the Central Bank has announced that it will allow for the authorisation of QIAIFs that originate loans from 1 October 2014. The Central Bank's AIF Rulebook is being updated to reflect this change. To-date, Irish regulated funds have been prohibited from granting loans though they have been permitted to acquire loans on the secondary market. The Central Bank has stipulated a number of conditions and details of the main conditions are set out below. This is a welcome development for managers looking to undertake loan origination in a regulated fund structure as well as for prospective borrowers which will have access to potential new sources of debt funding. The main conditions which must be met by a loan originating QIAIF include: It must have an authorised AIFM or be authorised as an internally managed QIAIF that is authorised as an AIFM;
As a firm, we have been actively involved in advising regulated loan funds and advising unregulated loan originating structures and so are well placed to assist anyone looking to take advantage of this development. Footnotes: For more information please contact a member of the Asset Management & Investment Funds Team. Date published: 18 September 2014 Read full article at: http://www.algoodbody.com/insightspublications/the_central_bank_of_ireland_changes_rules_to_permit_managers_to_set_up_loan_originating_funds |