Credit Funds Regulation in the EU and the Debate on NPLs and AMCs

43 Pages Posted: 10 Jun 2021

See all articles by Filippo Annunziata

Filippo Annunziata

Bocconi University - Department of Law; European Banking Institute; Ca Foscari University of Venice; Bocconi University - Baffi Carefin Centre; Frankfurt School of Finance & Management; EUSFIL Jean Monnet Centre of Excellence

Date Written: May 2021

Abstract

In the current EU legislative framework for investment funds - UCITS Directive and AIFMD - credit funds have rightly been singled out as something quite unique. In fact, they stand at the crossroads of capital markets’ and credit institutions’ regulations, playing a role of both an investor in a particular asset class, and of a credit facility provider. They may also effectively perform other functions, such as those of securitization vehicles, or comparable to Asset Management Companies (“AMCs”) for the management and processing of non-performing loans. They are, therefore, hybrid creatures, difficult to regulate and, sometimes, to understand. This is due not only to the absence of any specific product regulation in the context of the AIFMD, but also to the uncertainties surrounding the notion of “credit” and “credit granting” in EU law. Within the EU, legislation on credit funds developed, until now, in a haphazard manner. Absent a clear reference scheme, the result is unsatisfactory, and far from being able to integrate EU Markets in this respect. Further, more robust harmonization is therefore needed in this area, now more than ever in the context of the debate on the effects of the pandemic and the management of NPLs. The paper aims to provide sufficient evidence to support these assumptions, also taking into account the lively debate on the role of Asset Management Companies and the development of an efficient secondary market for loans in the EU.

Keywords: AIFMD, Credit Funds, NPL, AMC, Loan Origination Funds, Loan Participation Funds, Alternative Investment Funds, Financial Stability

Suggested Citation

Annunziata, Filippo and Annunziata, Filippo, Credit Funds Regulation in the EU and the Debate on NPLs and AMCs (May 2021). Bocconi Legal Studies Research Paper No, 3857841, Available at SSRN: https://ssrn.com/abstract=3857841 or http://dx.doi.org/10.2139/ssrn.3857841

Filippo Annunziata (Contact Author)

Bocconi University - Department of Law ( email )

Via Roentgen, 1
Milan, Milan 20136
Italy

European Banking Institute ( email )

Frankfurt
Germany

HOME PAGE: http://ebi-europa.eu/bodies-of-ebi/academic-board/

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Bocconi University - Baffi Carefin Centre ( email )

Via Roentgen 1
Milan
Italy

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

EUSFIL Jean Monnet Centre of Excellence ( email )

Italy

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
273
Abstract Views
703
Rank
203,702
PlumX Metrics