04/03/2014
Spanish government kicks off fund reforms
P { margin-bottom: 0.08in; } The Spanish government at the end of February submitted its proposel law to reform venture capital institutions and other closed investment funds to the Council of State, Funds People reports. The bill, which would modify the law of 4 November 2003, is now being considered by the Council of State, and will then pass to the Council of Ministers, before moving on to Parliament. One of the essential points in the bill is that it transposes the European alternative investment fund mangement directive (AIFM) into Spanish law. According to a summary released by the Council of Ministers, the bill includes the terms of the AIFM directive, including the introduction of new requirements for asset management firms concerning their structure and organisation, in order to guarantee risk control, liquidity, conflicts of interest, and also to establish a pay policy which avoid excessive risk-taking. The government bill also reduced administrative requirements for venture capital entities which will in the future no longer be subject to an authorisation regime, but instead to a simple formality of registration with the CNMV, the Spanish financial market authority. As Luis de Guindos, minister of the Economy, says, “authorisation will be necessary only for managers and not for fund institutions.” The bill also specifies an adjustment in the minimal requirements for owners’ equity at asset management firms, bringing it into line with the European directive and other European asset management firms. The bill also includes measures to adapt the sales and cross-border management regimes for funds managed by European and foreign asset management firms.
