On 4 May 2018, the Central Bank of Ireland ("Central Bank") published an updated version of its questions and answers document on the application of the Alternative Investment Fund Managers Directive ("AIFMD Q&A") including an updated question and answer (ID 1083) relating to loan originating qualifying investor alternative investment funds ("L-QIAIFs") and obligations to report pursuant to the Central Credit Act 2013 (the "2013 Act"). The AIFMD Q&A states that the activities of an L-QIAIF, in so far as they relate to the provision of credit, may fall within the scope of the Credit Reporting Act 2013. With effect from 31 March 2018, providers of business loans are required to report to the Central Credit Register.
Credit applications or credit agreements are covered by the 2013 Act where:
- the applicant for provision of credit or the person for whom the credit is provided under the credit agreement is resident in Ireland at the time when the credit application or credit agreement is made; or
- the law governing any credit agreement made pursuant to the application would be the law of Ireland, or the law governing the credit agreement is the law of Ireland.
The updated AIFMD Q&A is available here.
The proposed timelines set by the Central Bank in relation to the Central Credit Register provide that all in-scope lenders (which may include L-QIAIFs) must report data on non-consumer credit to the register by 30 September 2018.
Ireland was the first European Union member state to introduce a specific regulatory framework for loan originating investment funds. Matheson advised on the establishment of one of the first L-QIAIFs in Ireland and continues to advise a number of clients on establishing these funds.
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.