Risk management for loan origination by AIF capital management companies; Retention

(1) An AIF capital management company must ensure that an AIF it manages retains 5 percent of the nominal value of each loan that the AIF has granted and subsequently transferred to third parties. This percentage of each loan is retained as follows: 1. until maturity, for loans with a term of up to eight years, or for loans granted to consumers, irrespective of their term, and 2. for a period of at least eight years, for other loans.
(2) Subsection (1) does not apply where 1. the AIF capital management company begins to dispose of the assets of the AIF in order to be able to redeem units as part of the winding-up of the AIF, 2. the sale is necessary for compliance with restrictive measures adopted under Article 215 of the Treaty on the Functioning of the European Union (OJ C 202, 7.6.2016, p. 1), or with product requirements, 3. the sale of the loan is necessary in order for the AIF capital management company to be able to implement the investment strategy of the AIF it manages in the best interests of the investors of the AIF, or 4. the sale of the loan is attributable to a deterioration in the risk associated with the loan that the AIF capital management company has established in the course of its procedures for satisfying the duty of care under section 29(3), point 1, and for exercising risk management under section 29(3), points 2 to 4, and subsection (1) of this section, and the purchaser is informed of this deterioration upon purchase of the loan.
(3) At the request of the Federal Institute, the AIF capital management company must demonstrate to it that the conditions for applying the exemptions under subsection (2) are satisfied.