The Portuguese Securities Market Commission (CMVM) has published Regulation no. 5/2020 on 23 April, establishing the legal framework governing the granting of loans to companies by credit funds.
This regulation amends Regulation no. 3/2015 on venture capital, social entrepreneurship and specialised alternative investment and comes as a consequence of the creation of the Specialized Alternative Credit Investment Bodies (“SACIB of credits” or “credit funds”) by Decree-Law no. 144/2019 of 23 September.
Accordingly, pursuant to this diploma, certain specific aspects of credit funds are regulated such as (i) the composition of the assets of credit funds, (ii) the rules of exposure per entity or group, (iii) rules for credit risk analysis, (iv) evaluation, monitoring and control of credit risk, (v) stress tests, (vi) duties related to borrowers and (vii) information that must be provided.
Furthermore, this regulation establishes rules concerning the application for the authorisation of management companies of venture capital funds and venture capital investment companies, so that it is in line with the applicable regime for management companies of collective investment schemes and securitisation companies.
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