The government adopts a draft of new rules for loan funds

On October 27, the government adopts draft changes regarding investment fund companies. The proposal is intended to enable the creation of loan funds, expand the scope of TFI services and strengthen liquidity management and supervision. The changes are intended to adapt Polish solutions to EU regulations and increase investor safety.

A closed-end fund could operate as a lending fund when at least half of its net assets are invested in loans or providing financing is its main strategy. The project also provides for additional possibilities related to loan servicing and administration of benchmarks, subject to the indicated limitations.

New liquidity management tools are intended to help respond to larger requests for withdrawals. The proposal also covers the use of external services, the exchange of information between supervisors and product names. The adoption of the project by the Council of Ministers is a legislative stage; does not mean that the principles described apply to funds or consumers.

The proposed rules apply to the funds market, so they should not be equated with new conditions for granting each payday loan or the customer's automatic right to financing.