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New German Legislation Paves the Way for Debt Funds
30 March 2016
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New German legislation allows loan origination by debt funds without the requirement to obtain a banking license.
German funds that engage in loan origination business are subject to additional requirements, including leverage limitations and risk management requirements.
Non-German EU funds and permitted non-EU funds also benefit from the elimination of the banking license requirement, without the need to comply with the additional requirements applicable to German funds.
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