Ireland to Permit QIAIF for Loan Originations

The Central Bank of Ireland announced that Qualified Investor Alternative Investment Funds ("QIAIFs") will be permitted to engage in loan originations. The new regulatory framework was incorporated in amendments to the AIF Rule Book and derives from a Consultation Paper, published by the Central Bank in July 2014, in which the Central Bank set out its proposed regulatory regime for loan-originating QIAIFs.

The Central Bank also released a document reflecting industry feedback on the Consultation Paper, along with the Central Bank's responses to such feedback. For example, the final rules enable the funds to engage in loan participation, hedging and efficient portfolio management activities.

The Central Bank will accept applications for the authorization of loan-originating QIAIFs beginning on October 1, 2014. It is expected that application forms will be published on the Central Bank's Web site shortly.

See: Feedback on CP 85; AIF Rulebook (September 2014).See also: FATCA Specialty Page (available to Cabinet subscribers only).For more information, please contact Daniel Mulcahy and Mark Howe.