Proposed EU Directive May Create New Burdens for Managers of Debt Funds and Their Advisers

26 June 2018
View Debevoise Update
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.