ELTIF model brings new approach to lending in France

Author: Amélie Labbé | Published: 20 Jul 2016

France’s banking monopoly rules have been further relaxed following the market regulator’s authorisation of a crowdlending platform to launch a European long-term investment fund (ELTIF).

"The uptake of ELTIFs has a specific importance in France because of the quasi-monopoly of banks on lending activity," said Vincent Hatton, finance partner at Herbert Smith Freehills in Paris.

"Up until last December, when the EU ELTIF regulation came into effect, it was generally not possible for investment funds to directly lend to corporates in France," he added.

The platform, Lendix, is the third entity to be given the green light in France under the ELTIF scheme, and the first crowd lender to go down this route. It was approved last week by the Autorité des Marchés Financiers (AMF), which had previously issued ELTIF authorisations to two funds classified as French sociétés de libre partenariat (limited partnerships) in April 2016.

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