The Collective Investment Institutions (IICs) have become one of the most widespread savings instruments in the Spanish financial system. The development achieved in recent years has determined the need for an appropriate regulatory framework that has been embodied in Law 35/2003 of 4 November of collective investment institutions and Royal Decree 1309/2005 of 4 November 2005. The regulation of Law 35/2003 is adopted. One of the most significant innovations in the IIC regulation has been the regulation, for the first time in our country, of the IIC of Free Investment and of IIC of Free Investment IIC or what is known, more commonly, as "hedge funds" and funds of "hedge funds." This Order is particularly relevant for the Spanish collective investment industry to be able to operate with the new figure of free investment, within the necessary parameters of legal certainty, by weighting the principles of flexibility and investor protection. It is therefore a matter of developing and fully implementing the legal regime established by the IIC Regulation in the field of free investment. To this end, the Minister for Economic Affairs and Finance makes use of the general authorisation to lay down the provisions necessary for the implementation and enforcement of the Regulation contained in the Single Final Disposition of the Regulation. In addition, in order to complete the legal system of free investment, after the Law, the Regulation and the present Order, it is necessary that the National Commission of the Market of Securities (CNMV), determine the most technical aspects of the management of collective investment of free investment. To this end, this Order enables the market watchdog to make the necessary arrangements to make the content of the market more effective. Thus, this Order has as its fundamental object the development of the legal regime of the IIC of Free Investment and of the IIC of Free Investment IIC, addressing first of all the investment regime and the policy of indebtedness. In this sense, it is clear which elements must be included in the calculation of the debt limit and which are excluded. Then, the assets in the IIC of Free Investment IIC are broken down can invest the mandatory 60 percent coefficient established by the IIC Regulation. Second, the general criteria relating to the calculation of the liquidative value of the shares and shares of IIC of Free Investment and the IIC of IIC of Free Investment are established. Thirdly, specific aspects of the right of reimbursement and the scheme of estimated settlement values are developed. Fourth, the development of certain aspects of the management and depository societies as well as the regime of the assets given in guarantee by the IIC of Free Investment is addressed. Finally, in the articulated text, it is specified how the subscription of the investor consent document should be made. In addition, in the single additional provision of this Order, the CNMV is enabled to make the necessary arrangements for the calculation of the results management commission, placing this rating out of the scope of the investment. free. In its virtue, I have:

Article 1. Object.

This Order aims to develop the Regulation of Law 35/2003, of 4 November, regulating the institutions of collective investment (hereinafter IIC), approved by Royal Decree 1309/2005, of 4 November, in on the legal regime of the IICs of Free Investment and the IIC of Free Investment IIC and the management companies and the depositaries of these, as well as to enable the National Securities Market Commission (CNMV) to concreteness certain aspects that are necessary to complete what is established in this Order.

Article 2. Limit the indebtedness of IICs of Free Investment.

For the purposes of meeting the debt limit set out in Article 43 (h) of the Regulation, the Free Investment IICs shall carry out the calculation taking into account all funds received in cash by the institution, without considering the temporary disposal of assets, the financing received through simultaneous operations and the financing of securities received on loan.

Article 3. Limits of IIC of Free Investment IIC.

Article 44 (1) (a) of the Regulation shall be understood as falling within the meaning of Article 44 (1) of the Regulation for the purposes of calculating 60% of the following assets: (a) IIC of Free Investment incorporated in Spain.

(b) IICs domiciled in countries belonging to the OECD or whose management has been entrusted to a management company or entity which develops functions similar to those of the management company and with similar requirements for liability, subject to supervision with domicile in a country belonging to the OECD, in whose constituent documents are established investment rules similar to those established for IICs of Free Investment incorporated in Spain. (c) investment companies, holding companies and similar vehicles or structures, the prospectus or instruments of which establish investment rules similar to those laid down for IICs of Free Investment incorporated in Spain; which are intended to replicate an IIC of these characteristics and which are domiciled in OECD countries or which the entity in charge of management is subject to supervision and has an address in a country belonging to the OECD. For the purposes of this point and in the preceding subparagraph, supervision shall be understood to mean the authorisation of the entity and its operating rules by a regulatory authority of that country with competence in the matter, or the registration of the same in that authority.

The CNMV will determine the conditions for compliance with the provisions of this article.

Article 4. General criteria regarding the calculation of the liquidative value of the shares and shares of IIC of Free Investment and the IIC of IIC of Free Investment.

1. In the calculation of the liquidative value of shares and shares, the IIC of Free Investment and the IIC of Free Investment IIC will apply the basic principles and general criteria of valuation established for the IICs of character This is the case for the financial sector, all in accordance with the assessment criteria set out in the information brochure of the institution. Those criteria shall aim to reflect the value to which assets could reasonably be settled to a third party that did not have a special relationship with the IIC and was adequately informed at the time of the valuation.

2. The CNMV may establish the specificities that may be applied to the valuation of the assets of the IIC of Free Investment and the IIC of Free Investment IIC.

Article 5. Right of reimbursement in IIC of Free Investment.

1. An IIC of Free Investment may not grant a right of reimbursement on all dates of calculation of the liquidative value, provided that it is expressly included in the information leaflet of the IIC of Free Investment. In any event, the right of reimbursement must be in accordance with the minimum periodicity laid down in Article 43.e of the IIC Regulation.

2. In accordance with Article 43 (d) of the IIC Regulation, payment of repayments may be made in kind, provided that this is specified in the IIC prospectus.

Article 6. Right of reimbursement in IIC of IIC of Free Investment.

IIC of IIC of Free Investment that guarantee the reimbursements with charge to their patrimony will be applicable to them the article 5 (1) of the present Order.

Article 7. System of estimated liquidative values.

Regardless of the periodicity of the calculation of the liquidative value to be applied to subscriptions and reimbursements collected in prospectus, the participants or shareholders of IIC of Free Investment and IIC of IIC of Free Investment will be able to receive of the manager, as often as it considers appropriate, but which in any case shall be included in the prospectus, preliminary or indicative estimates of the value of the liquidative, calculated by the manager in accordance with its estimates of fees, expenses and results of the portfolio of assets, and that will not apply to the settlement of subscriptions and repayments. The institution's periodic information shall reconcile the differences in excess of the percentage established by the CNMV between such preliminary estimates and the final settlement value corresponding to the same date.

Article 8. Specific requirements for management companies.

1. In addition to complying with the provisions of Law 35/2003, of 4 November, of the Collective Investment Institutions and of its Implementing Regulation, the management companies of the IICs to which this Order applies must adapt their statutes, means and structure to comply with those specific requirements established by the CNMV in accordance with the ratings provided for in Articles 43 and 44 of the Regulation.

2. The CNMV shall determine the requirements for cases where the management companies of the IICs to which this Order applies to them shall delegate functions in accordance with Article 68 of the Regulation. 3. The above requirements will also be required for the Free Investment SICAV and the Free Investment IIC SICAV that have not entrusted the management of their assets to a management company.

Article 9. Control of the depositary.

For the exercise of the functions conferred on Articles 92 and 93 of the Regulation, the depositary shall establish a control system to ensure that the procedures for the selection of investments are carried out by the provisions of the rules in force. The CNMV shall detail the specific aspects to which the depositary should intervene.

Article 10. Regime of the assets given in guarantee by the IIC of Free Investment.

1. When an IIC of Free Investment, or its manager, has a financial guarantee agreement with a third party, in whose virtue the property of the goods delivered under warranty is transmitted to the third party, or said good is left with a right of disposition in favor the creditor is required to inform the depositary in compliance with the provisions of Article 92 of the IIC Regulation. The contract signed by the IIC or its manager and the entity with whom the financial collateral arrangement has been reached shall provide for the depositary to receive the information necessary for the fulfilment of the supervisory and supervisory functions which provides for Article 93 of the IIC Regulation and the rest of the implementing rules.

2. The agreements referred to in the preceding paragraph may only be concluded with financial institutions subject to supervision in an OECD country. 3. In accordance with the provisions of Article 15 of Royal Decree-Law 5/2005 of 11 March 2005 on urgent reforms to boost productivity and to improve public procurement, such agreements should provide for clarity. the responsibilities of the IIC and the collateral taker in the event of non-compliance with their respective obligations and in situations of insolvency. In particular, initiated the bankruptcy procedure of the beneficiary of the guarantee, the IIC of Free Investment, complying with the conditions imposed by the 15th article of the Royal Decree-Law 5/2005, will be able to put an immediate term to the financial guarantee agreement, with a net single payment by the party whose debt is greater than the other once taken into account all the respective obligations. 4. The CNMV shall determine the additional content to be included in the information leaflet and the periodic information of the IIC concerning the financial collateral arrangements referred to in paragraph 1 of this Article. It shall also determine the necessary content of the terms of the contracts from which the financial collateral arrangements are derived.

Article 11. Investor consent document.

1. For the purposes of complying with Article 43 (j) and Article 44 (f) of the Regulation, the investor shall subscribe to the document referred to in those letters in an independent document of the order of subscription. Both documents must be signed in the same act. A signed copy of this consent document must also be provided to the investor.

2. The provisions of the above paragraph shall also apply where the subscription is made by telematic means. In this case, the CNMV may establish the requirements and adaptations that are necessary for the fulfilment of those obligations.

Single additional disposition. Calculation of the management fee.

The CNMV is hereby enabled to make the necessary arrangements for the implementation of the system chosen for the allocation of the results management committee provided for in Article 5 of the Regulation.

Single repeal provision. Regulatory repeal.

As many provisions of equal or lower rank are repealed as set out in this Ministerial Order.

Single end disposition. Entry into force.

This rule shall enter into force on the day following that of its publication in the Official Gazette of the State.

Madrid, 25 April 2006.

SOLBES MIRA

Mr. Chairman of the National Securities Market Commission and Ms. General Director of Treasury and Financial Policy.