All registered foreign collective investment schemes operating in Spain must appoint a local representative.
The Spanish National Securities Market Commission ('Comisión Nacional del Mercado de Valores', or CNMV) requires all foreign collective investment schemes (CIS) operating in Spain - that is, non-resident companies with Spanish interests - and registered with the CNMV, to appoint a local representative.
This is an evolution of existing regulation from 2015 which required those CNMV registered non-resident CIS to appoint a representative in Spain in relation to the payment of the CNMV fees and for CNMV reporting purposes.
Both of these reporting duties must now be undertaken by a person, entity or company resident in Spain, as nominated by the foreign CIS.
Note that the appointment of a representative in Spain for this purpose is exclusively to report to the CNMV. There is no legal representation implied nor expected.
Reporting to the CNMV
The new requirement makes a fourth obligation for foreign entities registered with Spain's CNMV. The authority was established in 1988 to ensure stability and transparency of financial markets, to protect investors, and to make sure that brokers and intermediaries behave correctly.
All non-resident entities registered with CNMV must:
- appoint a representative with a resident in Spain to handle administrative steps such as paying the CNMV fees
- appoint a representative resident in Spain to provide statistical and investment performance information
- communicate registrations and de-registrations of entities or distributors marketing the CIS in Spain
- submit digitally through the CNMV's virtual office the statistical statement A01 to the CNMV, on or before two months after the end of each quarter to which the information refers.
Appointing a local representative
The process for appointing a local representative is very simple and straightforward process. A form for each obligation - for payment and for reporting purposes - must be completed by the local representative and filed with the CNMV. Once the local representative has been accepted, they will receive a notification confirmation from the CNMV; in the case of fees payable, the CNMV will also advise on the amount(s) due.
Talk to us
TMF Spain can help any foreign entity registered with the CNMV that needs to appoint a local representative and is unsure where to start, by either providing the representation or by explaining the obligation.
Please get in touch with our local experts for more information.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.