An open-ended investment fund in Spain is a type of structure which is very suitable for the investors who are interested in performing flexible investment activities. An important aspect related to the open-ended investment funds is that the investors are not limited to issue a certain amount of shares and, more importantly, they can opt to receive their return on investment at any given time, as there are no restrictions in this sense. Our team of company formation specialists in Spain can provide assistance on the legislation regulating the open-ended structures.
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Open-ended alternative investment funds in Spain
A type of open-ended fund in Spain can be set up as an alternative investment fund, under the regulations of the Law 35/2003 and the Royal Decree 83/2015. Alternative investment funds (AIFs) can be set up as open-ended or closed-ended structures. In this sense, the local legislation provides different regulatory frameworks, which can be further detailed by our team of company formation representatives in Spain.
Open-ended AIFs in Spain can be registered as:
- investment fund;
- investment company.
Authorization of an open-ended AIF in Spain
In order to register an open-ended structure in Spain, it is necessary to receive an authorization which is issued by the National Securities Market Commission (CNMV). If the structure has already been incorporated in another member state of the European Union (EU), the local legislation will not require further authorization of the Spanish market.
However, in the case of a non-EU open-ended fund, it is necessary to obtain the authorization from the CNMV.
Most of the open-ended AIFs in Spain are registered as hedge funds, which represent a popular vehicle in Europe, as their main purpose is to carry out investment schemes that will provide the highest return on investment.
In an open-ended structure, the investors are not subjected to restrictive investment regulations, as it is the case for a closed-ended fund. The investments carried out through this type of fund require investing at least 60% of the company’s net assets.
Businessmen who need further details on the open-ended investment vehicles are invited to contact our team of company formation agents in Spain.