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.