Regulatory Alerts2019-06-04
Definition of Alternative Investment Funds and Project Finance Companies
The Norwegian Financial Supervisory Authority issued this circular to clarify that project finance companies and similar single-asset structures are typically classified as Alternative Investment Funds (AIFs) under the AIF Act. It mandates that financial institutions conducting due diligence must identify such structures as AIFs, requiring the appointment of an AIF manager to oversee operations and marketing from the establishment phase. The document outlines specific criteria, such as collective investment, defined strategies, and lack of investor operational control, to distinguish AIFs from entities engaged in ordinary commercial business.
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