The Central Bank will allow for the authorisation of QIAIFs that originate loans from 1 October 2014. The Central Bank's AIF Rulebook has been updated to reflect this change (as referenced above).
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 in our Front Page bulletin. This is a welcome development for managers looking to undertake loan origination in a regulated fund structuree as well as for prospective borrowers which will have access to potential new sources of debt funding. Helpfully, the Central Bank published a Feedback Statement on CP 85: Loan Origination by Qualifying Investor AIF. This summarises the responses received along with the Central Bank's comments and decisions.