Law 22/2014 implements the AIFMD and entails a substantial change in the structure, organisation, risk management and remuneration of alternative investment funds managers (hedge funds, private equity, etc.) and a new regime for distribution of products and cross-border management.

Main Updates

Following a long process, on 13 November 2014 the Spanish Official Gazette has published Law 22/2014, of 12 November, regulating venture capital entities, other closed-ended collective investment schemes and management companies of closed-ended collective investment schemes, and amending Law 35/2003, of 4 November, on Collective Investment Schemes (Law 22/2014).

Law 22/2014 implements Directive 2011/61/EU of the European Parliament and of the Council, of 8 June 2011, on Alternative Investment Fund Managers (AIFMD). Law 22/2014 seeks to harmonise the terms and conditions for authorisations, marketing, rules of conduct and organisation of the management companies of alternative investment funds (AIF) in Europe.

Among the main new terms of Law 22/2014, it is worth highlighting the following:

1. The introduction of organisational requirements for management companies to ensure risk control, liquidity, remuneration of managers and conflicts of interest.

2. The establishment of a new regime for distribution and cross-border management of AIF managed by European and foreign management entities by means of a European passport.

3. New developments in AIF custody related to the depositary liability regime.

4. The streamlining and reduction of administrative burdens in the venture capital entities regime, since the authorisation regime is kept exclusively for their management entities.

5. The setting out of limits on the distribution of venture capital entities (only to certain investors and those with minimum investment).

6. The flexibilisation of the financial regime of venture capital entities.

7. The possibility that the managers of an AIF also manage pension funds investments.Law 22/2014 will enter into force on 14 November 2014.

Access to the full text of Law 22/2014 (only available in Spanish) here.

In the coming days we will send you specific information regarding the various amendments introduced by Law 22/2014 and the implementation of the AIFMD in Spain.