FRANCE: AMF issues circular on the conditions under which loans by AIF funds can be made

Tuesday June 28 2016

The French Financial Markets Authority (AMF) has published a circular (DOC-2016-02) on organisational conditions to be met by French asset management companies that manage alternative investment funds (AIF) wishing to provide loans. The circular outlines the requirements to obtain a license for such activities or to extend lending accreditation for the funds it manages.

This includes information on the following:

• The specific credit analysis for the loan granting system;
• Valuation, risk monitoring and control;
• Management company expertise;
• Using external service providers to prepare credit analysis;
• Legal analysis and the evaluation of capital requirements;
• Conflicts of interest; and
• Debt collection.

The circular also outlines the required reporting in relation to these loans by the management company to the AMF and the Bank of France.

Please click on the link above for further information (French only).