AIFMD Update – Central Bank of Ireland confirms that debt issuer SPVs are outside the scope of AIFMD Following industry consultation, including with the Irish Debt Securities Association (of which Dillon Eustace is a founding member), on 8th November, 2013 the Central Bank of Ireland (the "CBI") issued an update to their Questions and Answers ("Q&A") on the Alternative Investment Funds Managers Directive (Directive 2011/61/EU) and the Commission Delegated Regulation (EU) No 231/2013 ("AIFMD") originally published in May of this year. The updated Q&A addresses the uncertainty that surrounded the applicability of the AIFMD to special purpose vehicles ("SPVs") established in Ireland, in particular in the context of whether such SPVs could be alternative investment funds ("AIFs") for the purposes of the AIFMD and thus subject to regulation thereunder. The following is the terms of the question and the CBI's response:
Q. I am an SPV. Should I now seek authorisation as, or appoint, an alternative investment fund manager ("AIFM")?
A. As a transitional arrangement, entities which are either:
Registered Financial Vehicle Corporations within the meaning of Article (1)(2) of the FVC Regulations (Regulations (EC) no 24/2009 of the European Central Bank); or b) Financial vehicles engaged solely in activities where economic participation is by way of debt or other corresponding instruments which do not provide ownership rights in the financial vehicle as are provided by the sale of units or shares are advised that they do not need to...