Amendment of rules (foreign collective investment institutions)

Amendment of rules on reporting by foreign collective investment institutions registered with the CNMV

CNMV Circular 2/2011 of 9 July 2011 (BOE of 26 July 2011) on reporting by foreign collective
investment institutions registered with the CNMV repeals and replaces CNMV Circular
2/2006 of 27 June 2006.30 The Circular writes into the Spanish legal system the latest
precepts of Union legislation31 which came into force on 1 July 2011.
Under the new notification procedure, collective investment institutions (CIIs) have to submit
the relevant documentation to the competent authority of the home Member State.
That documentation shall include the notification letter, which contains the identity of the
entity empowered to represent the CII before the CNMV and the information on the provisions
for marketing the CII in the host Member State. In this respect, the Circular spells out
the specific information which the foreign CII must include in the notification letter, for
which purpose it sets out a standard format of the marketing report.32
Certain information on the foreign CII must be kept up to date electronically.
The requirements regarding the CII documentation to be sent to the CNMV are changed, the
information required to be disclosed to investors is adjusted somewhat, the requirement to register
compartments in the CNMV register is eliminated, and the content of the communication to
be made to the CNMV pursuant to Article 52 of the Personal Income Tax Regulations is broadened
to include information on compartments and/or classes to be reported for tax purposes.
Lastly, non-harmonised CIIs are no longer required to send information electronically.
The Circular came into force on 1 July 2011.

Financial Regulation 2011

In 2011 Q2 a relatively small number of new financial provisions was promulgated in comparison with previous periods.
In the field of financial institutions, Spanish solvency law was amended to adapt it partially to recent Union legislation. The opportunity was taken to introduce a new legal regime governing additional contributions to credit institution deposit guarantee fund based on the remuneration of these instruments.
Also, amendments were made to adapt Spanish law on payment and securities settlement systems to Union legislation, particularly to recognise so-called “interoperable systems” and to extend to them the legal provisions on settlement finality in credit transfer orders.
In the European Union area, there were four notable new provisions: the amendment of TARGET legislation to enable the ECB to provide overnight credit to certain counterparty institutions not licensed as credit institutions; the regulation of mergers of public limited companies in order to unify the protection of shareholders’ and third parties’ interests in these processes in Member States; the updating of legislation on purchases of euro banknotes; and the amendment of the EU regulation on credit rating agencies to include the functions acquired by the new European Securities and Markets Authority.
Within the securities market, there were three new pieces of legislation: the adaptation of Spanish law to EU legislation on credit rating agencies; certain changes to the information required of foreign collective investment institutions registered in the CNMV registers; and the updating of collective investment institution categories based on investment policy.
Finally, a new law on consumer credit agreements writes into Spanish law the recent European legislation in this connection.