FCA narrows AIF definition for SPVs
The UK regulator calms reclassification fears by exempting SPVs that issue debt securities from being classed as alternative investment funds
The UK Financial Conduct Authority (FCA) has announced that special purpose vehicles (SPVs) that issue debt will not be considered alternative investment funds (AIFs) under European regulations, so long as they meet an exemption in UK collective investment scheme rules.
The decision has been welcomed by participants in the structured products market, who had argued that a large number of existing structured notes could have been captured by the rules, potentially forcing them to shut down and
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