The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, or “BaFin”) has announced a change in its administrative practice with regard to debt funds. Until now, German debt funds were only allowed to grant loans in very limited circumstances. With this change in administrative practice, German debt funds are no longer subject to these limitations and are now free to originate loans directly in Germany. This also means that foreign (non-German) debt funds are also allowed to issue loans in Germany.