A Collective Investment Scheme licence was issued to Italo SICAV plc on 18th May 2015. The licence was issued in respect of the Scheme's first sub-fund, the Sentinel Fund, in accordance with the Standard Licence Conditions applicable to Collective Investment Schemes authorised to Invest through Loans (the "Loan Fund Rules").
The Scheme is the first Loan Fund to be established as an Alternative Investment Fund targeting professional investors in terms of article 6 of the Investment Services Act 1994 and will be managed by Gamma Capital Markets Limited in compliance with Alternative Investment Fund Managers Directive ("AIFMD") . The Fund's Investment Advisor is CNF Finanziaria SpA whilst the Master Servicer is Credit Network & Finance SRL.
Loan Funds are closed ended funds that are subject to special conditions to safeguard against risks to the financial system. They may originate loans to unlisted companies and SMEs and may also acquire loan portfolios but are restricted from lending to financial institutions and individuals. The Loan Fund Rules moreover do not allow leverage or the reuse of collateral while redemptions are only allowed under exceptional circumstances. Loan funds are also subject to specific competence, liquidity and disclosure requirements. The Loan Fund Rules were published by MFSA in April 2014.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
