On 9 June 2016, the Commission de Surveillance du Secteur
Financier (CSSF) issued an updated version – number 10
– of its Questions & Answers (Q&A) document on the
Alternative Investment Fund Managers Directive (AIFMD).
The update introduces guidance on loan origination by AIFs in
Luxembourg. The CSSF confirms that the loan origination activity is
permitted for AIFs in Luxembourg since neither the law transposing
the AIFMD (AIFM Law) nor the different product laws applying to
alternative funds, if applicable, forbid such activity. Certain
specific EU product regulations such as the European Long Term
Investment Funds (ELTIF), the European Venture Capital Funds
(EuVECA) and the European Social Entrepreneurship Funds (EuSEF)
regulations, even explicitly allow these AIFs to originate
Funds engaging in loan origination activities must comply with
the AIFM Law and where applicable, with their respective product
The CSSF places emphasis on the necessity for the AIFM or, where
applicable, the AIF itself, to address all aspects and risks of the
loan origination activity. They should also:
Rely on an adequate organisational and
Hire sufficient staff with the required expertise and
experience in the activity and have adequate technical resources in
Establish a strong risk management process to address credit
and liquidity risk management, concentration and risk limitation
which are key issues especially for loan origination
Have policies in place, i.e. relating to assets and investors
which specify loan and investor categories, how conflicts of
interest are addressed, and ensure proper disclosure and
The AIFM or the internally managed AIF are responsible for the
implementation of a strong framework, appropriate to the loan
The CSSF will assess this framework at the occasion of the
approval process and on an ongoing basis in the context of its
The same rules apply by extension to the loan participation and
loan acquisition activity for AIFs in Luxembourg.
The updated Q&A on the application of the AIFMD is available
under the following web
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The SuperReturn International series consists of 15 annual international private equity & venture capital events held in Europe, Asia, Africa, Middle East and the US. This happens to be the European event for the year. Spread across five days, starting from 27 February, the largest private equity event worldwide will take place in Berlin this year.
Some of the main subjects being discussed at this year’s conference are; The Geopolitical and Economical happenings of the last 12 months, Innovation Disruption & Tech Expertise and many more. As previously eluded to, there will be over 400 presenters, all bringing their own perspective and stance on specific topics to the table. Companies such as Google, Visa, Bloomberg and many more will all be represented throughout the five days.
KPMG Associate Partner, Nic Müller, will be speaking on 28 February at 3pm: “Why invest in the mid-market today”.
Given the societal challenges and environmental issues we currently face, the circular economy concept has rapidly been gaining in importance. This is why the Luxembourg government is pressing ahead in setting up the framework for the third industrial revolution, in which a circular economy is a key pillar.
The International Accounting Standards Board’s (IASB) insurance contracts standard, IFRS 17, is expected to significantly affect data requirements and the systems and processes used for data collection, actuarial projections, and on calculating and accruing interest.
In discussion with insurers around the world, we found that most expect to face challenges accessing and handling data of the right quality and granularity under the new standard. And many see significant effort associated with capturing, storing and analyzing this information given historical data quality and the use of legacy systems.
In the third of our webcast series - Impacts of IFRS 17 on data, systems and processes - we will share practical examples of how the forthcoming standard may impact an insurer’s current systems architecture. In addition, we will explore the data that will be required and how the standard will influence new estimates, computations and processing. We will also share lessons that we have learned from helping insurers through Solvency ll and the importance of developing a data management policy early on.
The Ministry of Financial Services, Commerce and Environment has prepared 11 bills to strengthen Cayman's regulatory framework, introduce new financial services vehicles, and improve the local business environment.
Over 150 attendees from both New York and the Cayman Islands recently gathered at the 4th annual Cayman Finance New York Breakfast Briefing held at the Harvard Club of New York City at which Cayman Finance CEO Mr Jude Scott described Cayman as "the premier global financial hub".
This article will explore existing real estate property management solutions, focusing on the top private equity real estate platforms in the marketplace, including subject matter expert's viewpoints on the existing software infrastructure.
Of those assets there is a wide range, including hedge funds, private equity, debt and property funds.
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