Central Bank publishes 50th Edition of the AIFMD Q&A

On 7 March the Central Bank published the Fiftieth Edition of the AIFMD Q&A (PDF 712.5KB).

The Fiftieth Edition clarifies the application of the prohibition on AIFs acting as guarantors for third parties.

Q&A ID 1160 confirms that guarantees are permissible in respect of investments and/or intermediate vehicles for such investments in which the QIAIF has a direct or indirect economic interest subject to a number of important safeguards and investor disclosures.

Q&A ID 1161 confirms that the definition of financial institution in the AIF Rulebook is aligned with that set out in the revised AIFMD loan origination rules which cross refers to EU Directive 2009/138/EC (Solvency II) that is transposed into Irish law through the European Union (Insurance and Reinsurance) Regulations 2015.

Q&A ID 1162 clarifies that the prohibition on lending to persons intending to invest in equities or other traded investments or commodities, does not prevent lending to a borrower with the intention of acquiring a controlling interest in a target company.