PEF in Spain

Oversight & regulation of PEFs in the Kingdom of Spain is an exclusive prerogative of the CNMV. It must be provided with any financial documentation relating to management & registration of private equity funds in the Kingdom of Spain. The SEPBLAC is another government agency that’s charged with overseeing & regulating PEFs & companies they're managed by.

Please, keep in mind that PEFs (or ECRs) must also abide by additional reporting requirements, such as:

• submitting a yearly report to the CNMV & investors;
• yearly reports of PEFs & companies they’re managed by;
• providing information on new measures regarding liquidity management; 
• providing information on acquiring stakes in unlisted companies which aren’t considered SMSs.

Meeting Registration Criteria

Including a PEF in a title deed & entering it in the Commercial Register are the two prerequisites which must be met to register a private equity fund in the Kingdom of Spain. 

PEFs or companies whose PEFs are sold to lay investors are required to abide by more stringent regulations. Registering them requires having a lot more material & human resources & furnishing much more detailed info (e.g. risk management, remuneration, asset evaluation, etc.).

Spain: Appointing Investment Advisors

PEFs & companies they’re managed by can engage in the provision of consulting services to other legal entities. Therefore, they aren’t required to register investment advisors in the Kingdom of Spain. Because they’re managed by other companies, PEFs’ directors & officers are also subject to regulatory oversight; hence; they needn’t be registered as investment advisors.

Managers

No fewer than 3 directors must be on a PEFs’ BOD. PEFs’ directors & personnel are required to complete a special questionnaire & an application form. Also, they’re required to have relevant experience & expertise in financial management. In particular, they must possess 3-years’ experience providing management or advisory services to financial institutions or holding managerial positions.

Intermediaries & Lobbyists

Normally, companies which run PEFs needn’t include names of intermediaries that’ll be marketing their PEFs in their prospectus. However, they might be requested to furnish more info on them during the process of their approval. 

Please note that selling PEFs in the Kingdom of Spain requires intermediaries to be properly authorized. 

As of now, no legislation on a lobbyists register has been passed in the Kingdom of Spain.

Banks

No other rules have had any significant impact on banks investing in PEFs in the Kingdom of Spain; the only exception is implications stemming from implementing Basel III rules & AIFMD .