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IOSCO’s final report on findings of the survey on loan funds

01/01/2017

On 20 February 2017, the International Organisation of Securities Commissions (IOSCO) published a final report on loan funds following a survey launched in December 2015.

On 20 February 2017, the International Organisation of Securities Commissions (IOSCO) published a final report on loan funds following a survey launched in December 2015.  There are two types of loan funds: a loan originating fund whose strategy allows it to grant, restructure and acquire loans; and a loan participating fund that can acquire and restructure partially or entirely existing loans originated by banks and other institutions, either directly from the lender or on secondary markets. These funds comprise both open-ended and closed-ended funds, and are marketed to both retail and professional investors.

The IOSCO report describes how the markets for loan funds has evolved in different jurisdictions and explains how regulators are addressing the risks associated with these funds. Despite the risks, many jurisdictions consider their general rules for funds to be sufficient to address the specificities of loan funds.

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