Spanish reg' imposes tougher rules on external investment fund advisers
Spanish financial market authority CNMV has published a technical guide with a new and stricter framework ruling the activity of external investment fund advisers in Spain, whether these are securities agencies, independent fund advisers or companies providing services to investment funds, such as administration of funds. CNMV has numbered 92 external investment fund advisers that were not regulated, 48 of which advising collective investment funds and the remaining 44 advising Spanish Sicavs.
Therefore under the new rules, Spanish asset managers and Sicavs must check on the good reputation, the qualifications, capabilities and means of their external fund advisers. In addition, CNMV's new framework requires a written proof (i.e. a printed contract) for any advisory deal. Besides, the investment fund advisory activity must be carried out exclusively by the external investment fund advisers with a view to avoid conflicts of interests (eg. in the event the adviser would advise several funds or Sicavs at the same time). Also, external investment fund advisers are forbidden to act on the fund's operations and advising a single Spanish investment fund or Sicav shall not be their main revenue source.