Business · Markets · 3 hrs ago
Spain’s market watchdog urges fund managers to create eligible savings products
Spain is planning a Financia Europa Savings and Investment Account to encourage investment.
The CNMV, Spain’s market watchdog, will keep the register of funds that can be included and says it expects to have it ready in less than four months.
To qualify, funds must invest at least 70% of their portfolio in assets linked to the European Economic Area, with minimum shares also required in shares overall and in qualifying European shares.
Inverco estimates that fewer than 10% of Spanish funds qualify, and that less than 5% of fund assets meet the rules.
The CNMV has urged fund managers to create more products that fit the account’s requirements.
The government’s decree still needs approval by Congress’s Permanent Deputation and two ministerial orders before the plan is fully developed; some fund managers also say its Europe-only investment rules and limited tax incentives are shortcomings.
Spain’s securities market regulator is urging fund managers to create more products that meet requirements for the government’s new savings and investment account.
The CNMV expects to prepare a register of eligible investment funds in less than four months.
The rules require at least 70% of a portfolio to be invested in assets linked to the European Economic Area, including at least 50% in equities and 35% in qualifying EEA equities.
Inverco estimates that fewer than 10% of Spanish investment funds, about 130 products, meet the requirements.
The asset management sector has welcomed the initiative but raised concerns about its design and limited tax incentives.
- Who
- Spain’s securities market regulator, the CNMV, and Spanish fund managers.
- What
- The CNMV is urging managers to develop funds eligible for the government’s new savings and investment account.
- When
- The CNMV expects to prepare the register in less than four months.
- Where
- Spain.
- Why
- The regulator says more products are needed to meet the account’s requirements; fewer than 10% of Spanish funds currently qualify, according to Inverco.
CNMV and Spanish government
Asset managers critical of the account’s design
Investment criteria
CNMV and Spanish government
The account requires substantial investment in assets linked to the European Economic Area, including qualifying equities.
Asset managers critical of the account’s design
Mutuactivos chief executive Luis Ussía said limiting investments to Europe excludes potentially more profitable alternatives.
Assessment
CNMV and Spanish government
CNMV president Carlos San Basilio called the initiative a good product that responds to current needs.
Asset managers critical of the account’s design
Ussía said the idea was good but poorly executed, and that tax incentives were limited.
Expansión reported that the CNMV had begun work on the register of funds eligible for the government’s savings and investment account.
The CNMV expects to have the register ready, earlier than the allotted timeframe.
- Eligible funds
- Fewer than 10% of Spanish investment funds, about 130 products
- Eligible assets
- At least 70% of portfolio value linked to the European Economic Area
- Equity allocation
- At least 50% in equities, including at least 35% in qualifying EEA equities
- Eligible assets by value
- Less than 5% of Spanish fund assets meet the proposed requirements
- Regulator
- Comisión Nacional del Mercado de Valores (CNMV)
What people are saying
que desarrollen más productos que encajen
no será un elemento que retrase la entrada en funcionamiento de la cuenta
Es una buena idea, pero mal ejecutada