Proposed EU Directive May Create New Burdens for Managers of Debt Funds and Their Advisers
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Key takeaways
- EU Commission Proposal aimed at enhancing the secondary market for non-performing loans (NPLs) could bring along new obligations for funds and fund managers investing in EU loan receivables.
- Despite its stated purpose, the proposed directive is not limited to NPLs, but applies to any loan issued by an EU credit institution (EU Loans).
- New obligations include authorization, reporting and disclosure requirements for buyers and credit servicers of EU Loans.
- Under the current draft, no exemption applies to AIFMD fund managers or MiFID investment firm.