January 25th 2017
The Central Bank has issued amendments to its AIF Rulebook relating to Loan originating Qualifying Investor Alternative Investment Funds (L-QIAIFs).
Before this amendment, L-QIAIFs were prohibited from engaging in activities other than lending and certain related operations. The recently revised AIF Rulebook now states that L-QIAIFs are permitted to deal in investments connected to the loan origination strategy. Including investing in debt and equity securities of entities or groups to which the L-QIAIF lends or which are held for treasury, cash management or hedging purposes.
The amendments to the AIF Rulebook draw parallels with rules at EU level. It ties in with the central aim of the EU’s Capital Markets Union, that being the encouragement of alternative sources of non-bank lending to the EU economy.