Amendment of legal provisions

Categories of collective investment institutions based on investment policy: amendment of legal provisions

CNMV Circular 3/2011 of 9 June 2011 (BOE of 27 June 2011) amended CNMV Circular
1/2009 of 4 February 200933 on CII categories based on investment policy.
The CII types established for the purpose of defining CII categories are changed as regards
listed funds, being reclassified as listed CIIs so as to include the listed index SICAV
(open-end investment company) created by Royal Decree 749/2010 of 7 June 2010
amending the implementing regulations of Law 35/2003 of 4 November 2003 on CIIs approved
by Royal Decree 1309/2005 of 4 November 2005.
The calculation of the investment percentages which define the various investment policies
is changed. Previously the net assets of the CII were taken as the base for the calculation,
whereas now the total exposure of the CII is used.
For this purpose, the total exposure is defined as the sum of the exposure obtained by the
CII through its investments in spot and derivative financial instruments. To calculate the exposure through derivatives, use shall be made of the commitment methodology set out
in CNMV Circular 6/2010 on transactions in derivatives of CIIs. Furthermore, investments
in equity securities issued by non-euro area entities and currency risk shall also be considered
in terms of total exposure.
Lastly, solely for the purpose of determining investment policy, no additional exposure for
the CII is considered to arise if its investments in spot or derivative financial instruments
do not expose it to additional risk, including but not limited to, interest rate risk and credit
risk. Hence they must be in, for example, public debt issued by a State of high credit quality
or repos on these assets, the maturities of which are below three months.
The Circular came into force on 27 August 2011.