In exchange for the sale, the intermediary receives shares in an investment fund
Bank of Italy, CONSOB and IVASS have issued, on 14 April 2020, as part of the coordination table on IAS / IFRS, joint document no. 8 , concerning the processing of transactions without recourse of receivables unlikely to pay (UTP) in exchange for units of investment funds. In fact, some banking and financial intermediaries have recently carried out multioriginator sales operations of portfolios of impaired loans, classified in the financial statements as probable defaults, receiving in return shares issued by a mutual fund.
The document draws attention to the following points : – consolidation of the fund in the balance sheet of the assignors; – elimination of the accounts (derecognition) of the transferred credits; – initial registration and evaluation of the fund units; – disclosure.
As for the consolidation of the fund , it is necessary to verify, for the purposes of its exclusion, that the conditions provided by IFRS do not occur jointly 10 (§ 7), i.e. that the investor does not have: – the power on the fund; » Read More