The Central Bank has confirmed that Section 110 special purpose vehicles (SPVs) are exempt from the Alternative Investment Fund Managers Directive (AIFMD).

The Central Bank’s AIFMD Questions and Answers document (Q&A) confirms that SPVs which (a) have registered with the Central Bank as Financial Vehicle Corporations pursuant to Regulation (EC) no 24/2009 of the European Central Bank; or (b) SPVS which are funded by way of debt or other corresponding instruments fall outside the scope of the AIFMD.

The relevant text of the Q&A is as follows:

"Q. I am an SPV. Should I now seek authorisation as, or appoint, an AIFM?

A. As a transitional arrangement, entities which are either:

a) Registered Financial Vehicle Corporations within the meaning of Article 1(2) of the FVC Regulation (Regulation (EC) no 24/2009 of the European Central Bank), or

b) Financial vehicles engaged solely in activities where economic participation is by way of debt or other corresponding instruments which do not provide ownership rights in the financial vehicle as are provided by the sale of units or shares...

are advised that they do not need to seek authorisation as, or appoint, an AIFM, unless the Central Bank of Ireland issues a Q&A replacing this one advising them to do so. The Central Bank of Ireland does not intend to do that at least for so long as ESMA continues its current work on this matter. If entities which believe they fall under (b) but not (a) wish to write to the Central Bank of Ireland in this regard, they may emailAIFMDsecuritisation@centralbank.ie.”

The Central Bank of Ireland does not intend to do that at least for so long as ESMA continues its current work on this matter. If entities which believe they fall under (b) but not (a) wish to write to the Central Bank of Ireland in this regard, they may email AIFMDsecuritisation@centralbank.ie.