The Central Bank of Ireland (Central Bank) announced its intention to broaden the scope of what a Loan Originating Qualifying Investor AIF (LO-QIAIF) may invest in to include "investment in debt/credit instruments". This change will be effective from 7 March 2018 when the Central Bank will publish a revised AIF Rulebook. This will allow LO-QIAIFs to engage in broader credit related strategies.
Background LO-QIAIFs are currently prohibited from engaging in activities other than lending and related operations. Following a review of this restriction (and industry submissions), the Central Bank has concluded that it is appropriate to allow LO-QIAIFs to have broader credit focussed strategies. This is a very welcome development as we have seen a number of clients investigate if this was a possibility for LO-QIAIFs.
Next Steps Given the limited nature of the change, a formal consultation is not being carried out by the Central Bank. Nevertheless, comments can be submitted for consideration, while arrangements are being finalised.