ESMA opinion on European framework for loan originating funds


Author: Kevin Murphy, Sarah Cunniff, Dara Harrington and Adrian Mulryan


In an opinion published yesterday, ESMA set out its view on a potential European framework for loan origination by investment funds. ESMA believes that a common approach at EU level would contribute to a level playing field for stakeholders, as well as reducing the potential for regulatory arbitrage. This could, in turn, facilitate the take-up of loan origination by investment funds, in line with the objectives of the Action Plan on Building a Capital Markets Union (CMU) published by the European Commission.

The Commission intends to consult on a European framework for loan origination in the second quarter of 2016. ESMA is of the view that the elements presented in its opinion should ideally form part of a harmonised European framework on loan origination through legislation or by way of an ESMA instrument supplementing AIFMD. The key elements of ESMA’s opinion are set out below.

Read the full briefing here.


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