The additional provision of Law 24/1988, of July 28, of the Securities Market, introduced significant changes in Law 46/1984 of 26 December, regulating the collective investment institutions. These amendments brought the national legislation on collective investment institutions into line with Community legislation and, in particular, those laid down in Directives 85 /611/EEC of 20 December 1985 and 88 /220/EEC of 22 March 1988. In addition to this basic purpose, the aforementioned additional provision, sixth of Law 24/1988, also sought to adapt various procedures of the Law of Collective Investment Institutions to the new regulation that of our markets of values establish the first of the aforementioned Laws. Amended, therefore, Law 46/1984, it is now necessary to adapt its Regulation, approved in its day by Royal Decree 1346/1985, of 17 July.

This Royal Decree has the basic objective of fulfilling this objective, which can be grouped together with the material changes that it introduces in the current Regulation in three major categories. In the first place, those that represent mere transcripts of the legal standard at the regulatory level, thus introducing in the disposition of inferior rank the modification already produced in Law 46/1984. In other cases the new precepts imply the development of specific ratings provided for in the new wording of some precepts of the Law of Collective Investment Institutions. Finally, a third group of amendments responds to the need to bring certain rules into line with the new general framework of the securities markets, which was drawn up in Law 24/1988 and the Community Directives mentioned above.

Considering the importance and extension of the precepts that are the subject of material modification, it has been deemed appropriate, for reasons of better regulatory technical, to approve a new full regulation of the Law of Institutions of Collective investment, including both the precepts of material alteration and those that remain unchanged.

In its virtue, on the proposal of the Minister of Economy and Finance, prior to the report of the Advisory Committee of the National Securities Market Commission, heard the sectors affected, heard by the State Council, and after deliberation of the Council of Ministers at its meeting on 2 November 1990,

DISPONGO:

Single item.

The new Regulation of Law 46/1984 of 26 December, regulating the Collective Investment Institutions, the text of which is inserted below, is approved.

REPEAL PROVISION

The Royal Decree 1346/1985 of 17 July, which regulates Law 46/1984 of 26 December, is hereby repealed, which is the regulator of the Collective Investment Institutions.

FINAL DISPOSITION

1. The Minister of Economy and Finance is empowered and, with his express rating, the National Securities Market Commission to dictate how many provisions are necessary for the development of this Royal Decree.

2. This Regulation shall enter into force on the day following its full publication in the Official Gazette of the State.

REGULATION PURSUANT TO LAW 46/1984 OF DECEMBER 26, REGULATION OF COLLECTIVE INVESTMENT INSTITUTIONS

PRELIMINARY TITLE

Article 1. Scope of the Law Enforcement of Collective Investment Institutions.

1. For the purposes of Law 46/1984, of December 26, regulator of the Institutions of Collective Investment, will be considered as such the Companies of Mobiliary Investment, the Funds of Investment and the persons or Entities that, whatever their object or activity, they publicly capture funds, assets or public rights to manage them, provided that the return of the investor is established on the basis of the collective results, by means of legal formulas other than the society.

Persons or Entities shall be subject to the Law which, with the requirements of advertising and determination of results provided for in the preceding paragraph, capture resources for their management through the contract of participating accounts and any form of community of goods and rights.

2. In no case, whatever the activity they perform, they will have the consideration of Collective Investment Institutions the Public Entities, the Credit Entities, the Insurance Entities, the Reciprocal Guarantee Societies or any other Financial Institution subject to special regulation.

Also, participative loans and any similar financing formula made in the framework of a specific regulation will remain outside the scope of the Act.

3. The Collective Investment Institutions may be of two classes: of a financial nature, which shall have as principal activity the investment or management of financial assets, such as money, promissory notes, exchange letters, certificates of deposit or any other transferable securities, and non-financial securities, which shall operate primarily on assets of another nature.

TITLE FIRST

Financial Collective Investment Institutions

CHAPTER FIRST

Common Provisions

Art. 2. Types of Financial Collective Investment Institutions.

1. The following Collective Investment Institutions shall be considered financial in character:

a) The Mobileof Investment Companies.

b) The Mobilia Investment Funds and the Investment Funds in the Assets of the Monetary Market.

(c) Other, the main object of which is the investment or management of financial assets, under the conditions and with the limits referred to in Article 1 (1

.

2. Mobiliaria de Inversión mobiliaria, de capital fixed or variable, are those companies that have exclusively the acquisition, tenure, enjoyment, general administration and disposal of transferable securities and other assets. financial to compensate, for an adequate composition of its assets, risks and types of income, without any majority economic or political participation in other Societies.

The Mobiliary Investment Funds are assets belonging to a plurality of investors, whose right of ownership is represented in the form provided for in this Regulation, administered by a Management Society to whom attribute the powers of the domain without being the owner of the Fund, with the contest of a Depositary, and constituted with the exclusive object of having the intended purpose in the preceding paragraph by the realization of the operations in the mentioned, with no majority economic or political participation in any Society.

The Investment Funds in the Assets of the Monetary Market are assets belonging to a plurality of investors, managed by a Gestora Society to whom the powers of the domain are attributed without owning the Fund, with the contest of a Depositary, constituted with the exclusive object of the acquisition, tenure, enjoyment, general administration and disposal of short-term financial assets of the money market, to compensate, for an adequate composition of its assets, risks and types of performance.

Art.

. 'domicile'.

The Collective Investment Institutions regulated in this Regulation, as well as their Managers and Depositary, must be domiciled in Spanish territory and have in this their central administration.

Art. 4. General rules on investments.

1. The investments of the Collective Investment Institutions shall be subject to the following limitations:

(a) No Institution may have invested more than 5 per 100 of its assets in shares, units, bonds or securities, in general, issued by other Collective Investment Institutions. In addition, investment in such securities shall be prohibited where the issuer is a Mobiliary Investment Company belonging to the same group as the investment institution or an Investment Fund managed by a management company in which it is circumstance.

(b) No Institution may have invested in securities issued or endorsed by the same Entity more than 5 per 100 of its asset. This limit shall be extended to 10 per 100, provided that the total investment of the institution, in securities exceeding 5 per 100, does not exceed 40 per 100 of the assets of the institution.

(c) No Institution may have more than 15 per 100 of its asset invested in securities issued or endorsed by Entities belonging to the same group.

The above percentages shall be measured by reference to the effective valuation of the total financial assets and the securities in question.

2. The investments of the Collective Investment Institutions will also be subject to the following limitations:

(a) A single Institution may not invest in securities issued or endorsed by the same Entity above 5 per 100 of the securities in circulation of the latter.

(b) The sum of the investments of the Mobiliary Investment Companies belonging to the same group and of the Investment Funds managed by the Managing Societies in which the same circumstance is of the same circumstance shall not exceed 15%. 100 of the values in circulation for a given Entity.

The above percentages will be measured by reference to the nominal values.

3. The limitations referred to in the first subparagraph of paragraph 1 (b) shall be 35 per 100 in the case of investments in securities issued or endorsed by a Member State of the European Economic Community, the Autonomous Communities or the International bodies of which Spain is a member.

However, the Collective Investment Institutions are allowed to invest up to 100 per 100 of their assets in securities issued by the Entes to which this number refers, provided that the investment is diversified into, less, six different emissions, without the values of the same emission exceeding 30 per 100 of the institution's assets.

When you wish to exceed the limit set in the first paragraph of this issue, in the prospectus and in any publication of the institution's promotion, this circumstance must be clearly stated, specifying the issuers on whose securities they intend to invest or are invested more than 35 per 100 of the institution's asset.

The above percentages shall be measured by reference to the effective valuation of the total financial assets and the securities in question.

4. By way of derogation from the preceding numbers 1, 2 and 3, the excess over the investment limits indicated therein shall not be deemed to be in breach, provided that the institution, within one year, has been counted from the time when the excess, appropriate to its regularisation, and the same is due exclusively to one or more of the following circumstances:

(a) Exercise of the rights incorporated in the securities that are part of the institution's portfolio.

b) Changes in the valuation of the same.

c) Reduction of the institution's own assets.

d) Fusion of Societies.

e) Reduction of the values in circulation by the issuing Company.

f) Alternations in the composition of the Entity groups.

(g) Other than the National Securities Market Commission generally establishes, in the interest of the market.

If the excess over the limits indicated in the preceding numbers of this article exceeds those limits by more than 35 per 100 of them, the institution concerned, without prejudice to the total regularisation to be carried out in the time limit laid down in the first subparagraph of this number, that excess shall be reduced to a percentage lower than 35 per 100 within six months of the date of production, except that the National Securities Market Commission, for exceptional reasons (a) the Commission has submitted a request for a decision on the application of the principle of This paragraph shall not in any case exceed the period of one year.

Except in the case provided for in point (d), the exception laid down in this number shall not apply and, consequently, there shall be an infringement where the excess over the investment limits is produced even by calculating such limits. according to the historical values of the acquisition.

5. For the purposes of this Regulation, the entities in which the conditions laid down in Article 4. of the Securities Market Act are to be considered as belonging to the same group shall be considered as belonging to the same group.

6. In order to ensure adequate compliance with the previous numbers, the Minister of Economy and Finance and, with his express rating, the National Securities Market Commission, will dictate the precise rules for determining which is to be understood by effective value and historical value, and by computable asset of the Collective Investment Institutions, by establishing the appropriate formalities for the control of such compliance.

Art. 5. The existence of significant shareholdings.

1. Where a partner or a member is involved; in itself or by an interested person, acquire, obtain the reimbursement or transmit shares or units of an Entity of the regulated entities in this Regulation and, as a result of such operations, the percentage of the subscribed capital or equity capital which falls within its power to reach or exceed, or to be below the percentages referred to in the following number, shall be subject, as the holder of a significant holding, to the obligations of the information set out in Article 6. °

When Article 53 of Law 24/1988 of 28 July of the Stock Market is applicable, it will be, however, to be included in the provisions of this Law and in the provisions that develop it.

2. The percentages referred to in the preceding number shall be as follows:

Five per 100 and all of its multiples up to 100 per 100 of the social capital of the Mobiliaria Investment Companies, be of fixed or variable capital.

Twenty for 100 and all of its multiples up to 100 per 100 of the equity of the Investment Funds, both Mobiliaria and in Assets of the Monetary Market.

The Minister of Economy and Finance and, with his express rating, the National Securities Market Commission, will be able to vary the percentages.

3. In order to determine whether or not the obligation referred to in this Article exists, it shall be understood that they belong to the same partner or participate in all the shares or units held by the group, as defined in the Article 4. of the Securities Market Act, to which the partner or participant belongs or on behalf of which it acts.

4. Unless otherwise specified, the following operations shall be understood to mean that the operations indicated are carried out by an individual who is not legally separated by the spouse, by the children under the parental authority or by the partner or by whom, subject to such power, they live in the family home of the partner or participate, except where, in the latter case, transactions arising from the use of income generated by the children, and, in any case, when they are carried out by a person acting in his own name, but on behalf of the partner or participating, by a controlled or direct controlled company indirectly by the, or by a Society, belonging to a group of Entities, controlled by it.

Art. 6. Information and publicity for significant and omission of its compliance.

1. The members of the Mobiliaria Investment Company in which the circumstances provided for in Article 5 (1) are provided shall inform the Company and the National Securities Market Commission of the percentage of the subscribed capital or equity capital that is in its power after the corresponding operation.

The information referred to in the preceding paragraph shall be delivered within a maximum of 10 working days from the completion of the operation in question.

In the case of Mobiliaria Investment Companies whose shares are admitted to trading on the Stock Exchange, the fulfilment of the reporting obligation referred to in Article 53 of the Securities Market Act replace the one of the regulated obligations in this issue.

2. In the case of a unit of investment funds or of shareholders of equity capital of variable capital, the reporting obligation on significant holdings will require referral to the National Securities Market Commission by the corresponding Management Society or Investment Company, of the position referred to in Article 12 (3), of those members or members in respect of whom the circumstances have been given, during the period in question; provided for in Article 5 (1). These position states shall collect the data concerning all the operations produced in the period in question which determine the extent, excess or reduction of the percentages referred to in Article 5 (1). The reference to the National Securities Market Commission shall be made on the same day as the consignment to the partner or participant concerned.

In the case of Capital Variable Investment Companies, whose shares are admitted to trading on the Stock Exchange, compliance with the reporting obligation referred to in Article 53 of the Law of the Stock Market will replace that of the regulated obligations in this issue.

3. The Mobiliaria Investment Companies and the Management Companies of Collective Investment Institutions will be obliged to collect the information on the shares referred to in the previous figures in the quarterly report of the Institution, after the date on which the percentages indicated, with the expression of the person or group holding those percentages, of the dates on which the operations of the same and the same person are carried out, are reached. percentage resulting from each of them.

The National Securities Market Commission will keep a record of the persons holding the above percentages.

4. Failure to comply with the obligation referred to in numbers 1 to 3 of this Article shall be punishable on an administrative basis in accordance with the provisions of Law 46/1984 and in this Regulation or, in the cases referred to in the last paragraph of Number 1 and the last paragraph of the number 2, as laid down in Law 24/1988, of the Securities Market.

5. The Minister of Economy and Finance or, with his express rating, the National Securities Market Commission will dictate the precise development rules for the proper application of the provisions of this article and the previous one.

Art. 7. ° Operations with Administrators or Managers.

1. Neither the Directors, Administrators or Directors of the Mobiliary Investment Company, nor the Management Companies of Collective Investment Institutions, nor the Directors, Administrators or Directors of the latter will be able to buy or sell for (a) whether or not directly or by any person or entity, the elements in which the financial investments of the institutions concerned are carried out or any other element of their assets. For this purpose, the operation is understood to be performed by person or entity in question when it is executed by a person united by a link of direct or collateral online, consanguine or affinity, up to the fourth degree inclusive, by directors or trustees or any Company in which the said Directors, Administrators, Directors or Entities have, directly or indirectly, a percentage equal to or greater than 25 per 100 of the capital or carry out functions that involve the exercise of the decision-making power.

2. By way of exception, the Directors, Administrators or Directors of the Mobiliary Investment Companies and of the Companies of the Institutions of Collective Investment will be able to acquire for themselves the financial assets contracted in the markets Article 8. °, provided that the price is equal to or greater than that of public procurement on the relevant day.

3. The provisions of the two preceding paragraphs shall also apply to the Directors, Administrators and Directors of the Depositary Entities of the Collective Investment Institutions.

4. The General Meeting of the shareholders of the Investment Companies may authorise specific operations referred to in paragraph 1 of this Article.

5. Failure to comply with the prohibitions laid down in the earlier numbers shall be imposed on the administrative basis in accordance with the provisions of Law 46/1984 and in this Regulation, without prejudice to other responsibilities which may have been incur.

Art. 8. Market regime operations.

1. In the case of securities admitted to trading on an official secondary market or in another of those referred to in Article 17 (1), the collective investment institutions shall carry out their transactions precisely through the normal procurement mechanisms established for each market.

2. By way of derogation, and in accordance with the rules of each market, operations may be carried out by means of mechanisms other than normal procurement, provided that they are designed to be more favourable to the institution and do not put into effect risk of market functioning.

3. In any event, auctions or issues of Public Debt may be submitted with requests of any kind and to the other markets under the conditions stipulated for them.

Art. 9. Prior authorisation and registration.

1. (a) Those who intend to constitute a Collective Investment Institution shall:

I. Obtain the prior authorization of the draft constitution of the Minister of Economy and Finance, by application filed with the Directorate General of the Treasury and Financial Policy.

II. To be constituted as a Company or as an Investment Fund, as appropriate, once the authorization has been obtained.

III. Register with the Register of the National Securities Market Commission that corresponds to the institution concerned.

It will be up to the Minister of Economy and Finance to resolve the requests for prior authorization of the draft Statutes or Regulations, prior to the report of the National Securities Market Commission. The decision shall be taken within six months of receipt of the request or of the additional documentation required, in any case, within 12 months of receipt of the request. Such a decision shall be reasoned and may be refused only for failure to comply with the requirements laid down in Law 46/1984 of 26 December 1984 on the institutions of collective investment, in this Regulation or in the other applicable provisions.

(b) The Management Companies of Collective Investment Institutions shall acquire such a character through the authorization of their draft constitution by the National Securities and Exchange Commission in the corresponding Registration of this. Such registration shall be made prior to the granting and registration of the deed of incorporation in the Commercial Registry.

(c) The Depositary of Collective Investment Institutions shall acquire such a character through the authorization of the National Securities and Exchange Commission in the corresponding Register of Securities.

2. They will be essential requirements for the collective investment institutions and the management companies to obtain and retain the authorization and the right to registration in the records of the National Securities Market Commission. following:

(a) That their social object is limited to the activities attributed to them by Law 46/1984 and this Regulation and their constitution is in accordance with the provisions of those rules.

(b) Having the minimum capital or equity and the minimum own resources laid down in the rules in force.

In the case of those Institutions which are in the form of the Company, and of the Management Societies, the following are essential requirements:

(a) That none of the members of the Board of Directors has been convicted of a firm judgment or is prosecuted for the offence of falsehood, property or against the Public Finance or is disqualified from holding office administration or management in Financial Entities.

b) That all members of its Board of Directors, including natural persons representing legal persons who are Directors, as well as their Directors-General or assimilated, have a recognized honorability commercial and professional.

Consure such honorability in those who have been observing a business or professional trajectory of respect for the commercial laws and other norms that regulate the economic activity and the life of the business, as well as the good commercial, financial and banking practices.

c) That the majority of the members of its Board of Directors have adequate knowledge and experience in matters related to the financial markets. It shall be presumed that they have adequate knowledge and experience for these purposes who have performed, for a period of not less than two years, senior management, management, control or advisory functions of financial institutions, companies or Securities and Institutions of Collective Investment and Management Companies of the latter or functions related to the markets cited in other public or private entities.

3. The National Securities Market Commission will take the following Records related to the Collective Investment Institutions:

a) Register of Capital Investment Companies of Fixed Capital.

b) Registration of Capital of Variable Capital Investment Companies.

c) Registration of Mobilise Investment Funds.

d) Registration of Investment Funds in Money Market Assets.

e) Registration of the Management Companies of Collective Investment Institutions.

f) Register of Depositary of Collective Investment Institutions.

g) Registration of other Collective Investment Institutions

h) Register of Portfolio Managers.

i) Registration Of Significant Holdings.

j) Registration of Brochures, Quarterly Reports, Annual Memoirs, and Audits.

k) Registration of Foreign Collective Investment Institutions marketed in Spain.

4. (a) Once registered in the Mercantile Register, the Mobilia Investment Company and the Investment Funds will present in the National Securities Market Commission, for their registration in the appropriate Register, the corresponding scriptures. If the deed contains the Staff Regulations or Regulations which have been the subject of prior authorization, the registration by the National Securities Market Commission shall be entered within one month. If the Staff Regulations or the Regulation are to be removed from those which were previously authorized, the registration shall be refused by means of communication to the promoters, expressed at the ends which have been the subject of modification, In order to correct the changes or errors introduced within two months, either expressly request a new authorisation in the terms provided for in paragraph 1 of this Article and always without prejudice to the resources available to them. correspond to the legislation in force.

b) The registration in the Register of Companies of the Institutions of Collective Investment will be practiced, once the corresponding writing in the Commercial Registry, through its presentation to the National Commission of the Stock Market and the agreement of the latter. The same time-limits and procedural rules as set out in point (a) of this number 4 shall apply to this entry.

(c) The registration of the Depositary shall be made by virtue of the mere communication made to the National Securities Market Commission by any of the Entities referred to in Article 58 of this Regulation.

Not in the administrative records referred to in points (a) and (b) above, the entries in the records referred to in the case of the date of prior authorization and the day on which the Documents for the registration would have elapsed more than one year.

5. (a) The amendments to the constitutive contract, the Statutes or the Regulation of the Collective Investment Institutions shall be subject to the provisions set out in the preceding numbers, with the following specialties:

I. The application for authorisation of the statutory amendments may be made by the Directors of the Mobilia Investment Companies prior to their approval by the General Shareholders ' Meeting.

II. The time limits referred to in the last subparagraph of point (a) of No 1 shall be three and six months respectively.

III. The change in the registered office of the Investment and Investment Funds, as well as the increase in the share capital of the former, will require only communication to the National Securities Market Commission, for their constancy in the corresponding administrative register. Only the initial capital increase and the maximum statutory capital increase must be reported in the Capital Variable Investment Company.

Nor will the prior authorization be necessary, with the corresponding communication, in relation to the other modifications in respect of which the Directorate General of the Treasury and Financial Policy, in response to prior consultation has been deemed to be unnecessary, because of its limited relevance, the approval procedure, or in relation to the amendments to the social statutes or the management regulations which are solely for the purpose of comply with laws or regulations or judicial or administrative decisions.

(b) The amendments to the Statutes of the Management Societies of Collective Investment Institutions shall be subject to the provisions of point (b) of the first paragraph of this Article, with the following peculiarities:

I. The application for authorisation of the statutory amendments may be made by the Administrators prior to the approval by the General Shareholders ' Meeting.

II. The change in the registered office, the increase in the share capital and any statutory changes which are intended to comply with laws or regulations or judicial or administrative decisions shall require communication only to the Commission. National of the Stock Market for its constancy in the corresponding Administrative Register. The same scheme applies in relation to the other changes in respect of which the National Securities Market Commission, in response to prior consultation, has deemed it unnecessary, due to its limited relevance, to the authorization.

Depositors are only required to notify the change of their registered office.

(c) The presentation to the National Securities Market Commission of the precise documentation for the registration of the modifications mentioned in this issue must be made within six months from the date of the notification of prior authorisation. In cases where no authorization is required, the corresponding communications shall be made to the National Securities Market Commission within twenty days from the registration of the corresponding writing in the Register. Mercantile.

6. The voluntary reduction in the Administrative Registry of the Capital Investment Companies of Capital Fixed will require the prior agreement of the General Meeting of Shareholders, adopted with the majority required for the modification of its Statutes. The voluntary absence of the Companies of Capital Variable in the Administrative Registry of the same, where it is not the consequence of a dissolution agreement, will require the prior modification of its Statutes for its transformation into a Society of Fixed Capital.

Art. 10. Information obligations of the Collective Investment Institutions.

1. The Collective Investment Institutions or, where appropriate, the corresponding Gestora Society shall draw up the following documents in order to comply with their general reporting obligations:

(a) At the time of their registration in the Administrative Register, an explanatory prospectus, which shall contain the Statutes or the Regulation of the corresponding Collective Investment Institution, as appropriate, and shall be in accordance with Articles 26 and 28 of the Law on the Market of Securities and on the provisions that develop it, with the peculiarities that may be established for those institutions. Such prospectus will be registered by the National Securities Market Commission, with the scope provided for in the Securities Market Act.

(b) Annually, an explanatory note for the financial year, which shall contain at least the minimum specifications corresponding to those of the companies or entities whose securities are admitted to trading on the stock exchange. Its content will be adapted to the peculiarities of the Collective Investment Institutions.

(c) For the month following the end of each calendar quarter, a report shall contain the information necessary to update the contents of the annual report and, in particular, the information relating to the institution's assets, its financing, revenue and costs over the period.

The Minister of Economy and Finance and, with his express rating, the National Securities Market Commission will determine the content of the information documents indicated and the models to which they will be adjusted. They may also establish uniform rules for the calculation of the returns obtained by each institution.

2. In compliance with their general reporting obligations:

(a) The Management Companies of the Mobiliary Investment Funds and the Investment Funds in the Assets of the Monetary Market shall provide each participant, prior to the subscription of the shares, with a copy of the brochure, of the last Annual Report and the last quarterly report published. Likewise, except in the cases that the Minister of Economy and Finance or, with his express rating, the National Securities Market Commission can determine, they must send the following reports to the address indicated by him. quarterly and annual Memories to be published in respect of the Fund, free of charge to the Fund, and until such time as it loses the condition of such participation.

(b) Capital Fixed and Variable Capital Investment Companies shall edit the documents referred to in the preceding number within the time limits specified for each of them. Such documents shall be made available at the registered office of those Entities and in the offices of their branches, where they shall be delivered free of charge to persons who request them. Without prejudice to this, the partners shall have the right to request the sending of such documents to their home, free of charge.

3. The Register referred to in Article 9 (3) (j), in which the brochures, Memories and reports shall be entered, shall be freely accessible to the public.

4. The Collective Investment Institutions, in compliance with the supplementary information obligations, must make public any specific facts relevant to the situation or the development of the institution, by means of their immediate communication to the National Securities and Exchange Commission, notification and publication in the "Bulletin of the Stock Exchange" based on the institution's registered office or, failing that, in that of any of the Bags, and inclusion in the report Immediate quarterly. Acts that are specifically relevant to the Institution shall be considered to have a significant effect on the consideration of the value of the shares or units by the public, and in particular:

I. Any reduction in the capital of investment companies that represents a variation of more than 10 per 100 of that.

II. Any reimbursement in the Investment Funds that represents a decrease of more than 20 per 100 of the equity in the Mobiliary Investment, and 40 per 100 in the Investment in Assets of the Monetary Market.

For the purposes of calculating the percentages set out in this issue, account shall be taken of any reductions or repayments made in a single act. However, where the limits are reached through successive capital reductions or reimbursements requested by the same participant or by a group of participating Entities within a period of two months, the same shall also be deemed to be relevant. set of capital reductions or reimbursements.

III. Any borrowing operation, from the time it implies that the obligations towards third parties exceed 5 per 100 of the institution's assets.

IV. Those provided for in the first subparagraph of Article 37 (3) and Article 60 (4

.

5. The Minister for Economic Affairs and Finance and the National Securities Market Commission may obtain from the institutions governed by this Regulation the additional information they deem necessary in order to comply with their respective institutions. powers, and may establish the content and model of the relevant information documents, as well as the time limits for their referral. In particular, the National Securities Market Commission may, in general, establish the obligation to forward periodically to that entity, in accordance with the models approved, information relating to the fulfilment of the coefficients to which it is refer to Articles 4, 17, 26, 37 and 49, and to their financial statements.

Art. 11. Unique name.

The denominations "Institution of Collective Investment", "Company of Mobiliary Investment", "Company of Investment Capital of Variable Capital", "Investment Fund Mobiliaria", " Investment Fund in Market Assets Monetary "," Sociedad Gestora de Institutions de Inversión Colectiva "and" Sociedad Gestora de Carteras "and their respective abbreviations" II.C. " "S.I.M.", "S.I.M.C.A.V. ", "F.I.M.", "F.I.A.M.M. ", "S.G.I.I.C." and "S.G.C." they shall be proprietary to the Entities entered in the corresponding Records of the National Securities Market Commission, and no other Entity may use such names or other names that mislead them.

Entities governed by this Regulation shall include in their social reason the name corresponding to them from those listed in the preceding paragraph or, if they prefer, their abbreviation.

CHAPTER II

Mobilia Investment Companies, Mobilia Investment Funds and Money Market Assets Investment Funds

Section first. General provisions

Art. 12. Capital and equity of the Companies and Investment Funds.

1. The social capital of the Mobiliaria Investment Companies will be represented by nominative shares that will have the same nominal value and will grant the same rights. Such actions may be represented by titles or by means of annotations in mind.

The minimum paid-up capital of the Mobiliaria Investment Companies will be 400 million pesetas and must be maintained as long as the Company is registered in the Register, without prejudice to the provisions of Article 16 of the Regulation.

2. The Mobiliary Investment Funds will have a minimum worth of 500 million pesetas and the Investment Funds in the Assets of the Monetary Market one of 1.5 billion pesetas. In both cases, they shall be maintained as long as they are registered in the Register, without prejudice to Article 16.

Equity in the Investment Funds shall have equal characteristics, shall be considered marketable securities and may be represented in any of the following forms:

(a) By means of nominative certificates with no nominal value, which may document one or more units, and to which the members shall be entitled to issue. These certificates shall include their serial number, the number of units they comprise, the name of the Fund, the Management and Depositary Society and their respective addresses, the date of granting of the writing of the Fund and the data relating to the registration in the relevant commercial and administrative register.

(b) By means of annotations in mind, which shall be subject to the regime established by Chapter II of Title 1 of the Securities Market Act.

Any participant in a Fund whose shares are represented by an account shall have the right to obtain from the Gestora Company, when necessary, a certificate of those provided for in Article 12 of the Law of the Securities Market, referred to as the option of the Stock Market, to all or to any of the shares in which it is a holder.

3. Whatever the form of representation of the units or shares:

(a) The Management Company or the Depositary shall send each participant, with a periodicity not exceeding three months in the Mobiliary Investment Funds, and one month in the Investment Funds in the Assets of the Monetary Market, a state of its position in the Fund. If there is no movement for subscriptions and refunds within a period, the submission of the position of position to the following period may be postponed and, in any case, the referral of the position of the participant at the end of the financial year shall be compulsory. Such an obligation must also be met by the Capital Variable Investment Company of Variable Capital in respect of its partners, the first of which is applicable.

(b) The Management Company of an Investment Fund may, without prejudice to the right of the unit-holders to obtain the certificates referred to in the preceding number, use, as a management document, to be the average of which is reported to the members of the position held in the Fund after each of its operations.

The Minister of Economy and Finance and, with his express rating, the National Securities Market Commission, will determine the content and model to be adjusted, in each case, the state of position mentioned.

Art. 13. Admission to trading on the Stock Exchange and remain on the Stock Exchange.

1. The following special rules shall apply in the admission to trading on stock exchange of the shares of the Mobiliaria Investment Companies:

(a) The requirements set out in Article 26 (a) and (b) of the Securities Market Act and, by reference, in Article 32 of the Securities Market Act, shall be fulfilled by the filing of the corresponding a constitution, duly registered in the Trade Register and, where applicable, a literal certification of the relevant emission agreement.

(b) The filing and registration of the audit report referred to in Article 26 (c) of the Securities Market Act shall not be required.

(c) The prospectus referred to in Article 26 shall be as referred to in Article 10 (1) (a) of this Regulation.

(d) The requirement laid down in Article 32.1.c) of the Trade Bags Regulation shall not be required.

2. The request for prior verification by the National Securities Market Commission, as well as the application for admission by the respective Company of the Securities Exchange, may occur once the prior authorization referred to in the Article 9 (1) of this Regulation, without waiting for the registration referred to in Article 9 (4) of that Article, the corresponding resolution being conditioned to the practice of such registration.

3. The Mobiliary Investment Company shall be admitted to trading even if after its first admission, at that time, the minimum capital is fixed in excess of those required at that time.

4. When the loss of a Mobiliary Investment Company in the corresponding Register of the National Securities Market Commission occurs, the admission to trading on the Stock Exchange of the Company will be without effect, without prejudice to the fact that the applicant may submit a new application for admission, in accordance with the general rules.

5. The Management of Investment Funds, once registered in the corresponding administrative records of the National Securities Market Commission, will be required to supply the Rector Company of the Securities Exchange. (a) the place of its registered office or, failing that, any of them, the information required for the daily publication in the respective Bulletin of the quotation of the data relating to the liquidative value of its shares, its assets and the number of members. The Minister for Economic Affairs and Finance or, with his express rating, the National Securities Market Commission, may lay down the special rules necessary for the calculation of the daily settlement value of the securities listed or negotiated in foreign markets.

6. Compliance with this obligation to supply information shall determine that the shares in the Funds concerned have the consideration of securities listed for the purposes of those provisions governing specific schemes of investment. In the event that the corresponding Rector's Company does not receive the necessary information and, as a result, cannot publish the data indicated for seven consecutive days or fifteen alternate days within one month, it shall be so stated in the corresponding Bulletin of the Quotation. From that time on, and until 30 days after regular advertising of such data are carried out, the investments made in the units concerned may not be regarded as securities admitted to trading for the purposes of the the relevant provisions on specific investment schemes.

Art. 14. Constitution of capital and equity.

Contributions for the formation of capital or equity shall be made exclusively in money, securities admitted to trading on an official secondary market or in other financial assets which, according to the rules of each type of institution are eligible to cover their investment or liquidity ratios. Contributions of securities and other financial assets shall be subject to the investment rules laid down in Article 4 and the other rules provided for in this Regulation.

Art. 15. Minimum number of shareholders and members.

The number of shareholders in the Investment Company and unit-holders in the Funds may not be lower than that at any time necessary for the admission and permanence of the shares of a Company to be traded on the Stock Exchange. However, the companies and funds not constituted by the procedures for the successive founding and the public subscription of shares shall have a period of one year, counted from their registration in the corresponding Register administrative, to achieve that minimum figure.

Art. 16. Heritage reductions.

When by market circumstances or by the number of shareholders or members by the obligation to comply with the special legislation or the requirements of the Company Law, the equity or capital of the collective investment institutions or the number of their shareholders or members shall fall from the minimum laid down in Articles 12 and 15, the institutions shall enjoy the period of one year during which they may continue to operate as such. Within that period, they shall either lead to the reconstitution of the capital or the assets and the number of shareholders or members, or to decide their dissolution, or to agree to the cessation of their status as such an institution of collective investment and to apply for the exclusion of the relevant administrative register, with subsequent statutory changes and its activity. After that period, the registration in the administrative registers shall be cancelled if such registration is in the alternative, unless it has been consolidated by reconstitution of the assets or the number of members or members.

Art. 17. Investments and minimum liquidity ratios.

1. Companies and Investment Funds shall have at least 90 per 100 of their invested assets in:

a) Securities admitted to trading on a Spanish Stock Exchange.

b) Securities representative of the State's debt, as well as other securities traded on the Public Debt Market in Annotations.

(c) Other securities, such as the Mortgage Market itself, company notes, as long as they are traded in a Spanish market organized for regular operation, recognized and open to the public.

(d) Securities in respect of which admission to trading is requested in any of the markets referred to in the preceding letters. Those securities shall be equated with those in whose terms of issue the commitment to apply for admission to trading is made, provided that the initial period for fulfilling that commitment is less than one year. Where admission to trading of securities does not occur within a period of six months after the undertaking or the undertaking to submit the relevant application for admission has been made within the time limit, the time limit shall be given to the applicant. corresponding restructuring of the portfolio in the two months following the end of the period mentioned above. To this end, the issuing Entity must publish in the "Official State Gazette" the circumstance of having elapsed the periods indicated without having produced the facts mentioned.

The percentage referred to in the first paragraph of this number shall be 80 per 100 in the case of Mobiliary Investment Funds.

2. A market shall be deemed to be included in those defined in point (c) of the preceding number when the Minister for Economic Affairs and Finance establishes it, after a report by the National Securities Market Commission. The corresponding Order will be published in the "Official State Gazette".

Subject to the provisions of the preceding paragraph and to the requirements that the Minister of Economy and Finance may determine, the Companies and Investment Funds may conduct operations in the futures and options markets. financial. In particular, the Minister for Economic Affairs and Finance may limit, prohibit or condition that transactions or positions in such instruments, the purpose of which is not the purpose of the Management Regulations or Regulations, are expressly provided for in the Management Regulations or Regulations. strict risk coverage.

3. For the purposes of calculating the percentage referred to in Article 1 of this Article and dealing with securities traded on foreign markets, it shall be, without prejudice to the provisions of the regulations on the control of Spanish changes and investments in the outside, to the following rules:

(a) Securities which are admitted to trading on Bags located in OECD Member States, or are traded on the official public debt markets of such States, shall be treated as those admitted to Stock Exchanges Spanish and those traded on the Public Debt Market in Annotations, respectively.

(b) In the case of securities traded on markets as defined in point (c) of the preceding number 1 which radiate in an OECD Member State, the calculation of the percentage shall be required by the Commission after verification National of the Securities Market that the characteristics mentioned in that letter are present in such markets. Such verification may be granted on a general basis, for one or more markets.

(c) In the case of securities admitted to trading on stock exchanges or on markets referred to in point (c) of the preceding number 1 not based in OECD Member States, the calculation shall be within the indicated percentage. require the prior authorization of the National Securities Market Commission, which may grant it in general for one or more markets or stock exchanges, or for one or more securities, provided that the said markets offer Transparency, security, organisation and control not inferior to the corresponding Spanish.

The agreements of the National Securities Market Commission in compliance with the provisions of points (b) and (c) of this issue will be published in the "Official State Gazette".

4. The minimum liquidity ratios of the Variable Capital and Investment Funds shall be as follows, referring to the institution's asset:

a) In Capital Companies Variable 5 per 100.

b) In the Investment Funds on 3 per 100.

The indicated liquidity ratios shall be construed as referring to the monthly average of daily balances of the institution's asset, and shall be materialised in cash or in deposits or accounts in the Depositary.

The Minister of Economy and Finance, and with his express rating, the National Securities Market Commission, will be able to take into account the evolution of the hiring of shares of the Companies of Variable Capital and of the subscriptions and repayments of the Investment Funds, increase the abovementioned coefficients, without being able to exceed the limit of 10 per 100.

You can also set the procedure for calculating the coefficients.

Art. 18. Guarantee and custody of assets.

1. Transferable securities and other financial assets incorporated in the assets of the Collective Investment Institutions shall not be eligible for or constitute a guarantee of any kind. This, however, may be the subject of option or stock-lending operations with the requirements that the Minister of Economy and Finance may establish, prior to the report of the National Securities Market Commission.

2. Those securities and assets shall be in the custody of the Depositary concerned in accordance with the terms laid down in this Regulation.

Art. 19. Obligations towards third parties.

1. The obligations towards third parties of a Collective Investment Institution may not exceed 20 per 100 of its assets. For these purposes, the debits incurred in the purchase of financial assets in the settlement period of the transaction shall not be taken into account, but shall be taken into account in the case of credit-financed stock exchange transactions.

However, the Equity Capital Investment Company and the Investment Funds shall not be able to borrow beyond 10 per 100 of their asset and provided that the indebtedness occurs for a period of not more than one month and it is intended to resolve transitional cash difficulties, which shall be made public in accordance with Article 10 of this Regulation.

2. Neither the Equity Capital Investment Company nor the Investment Funds may receive funds from the public in the form of a deposit, loan, temporary transfer of financial assets or other similar assets. Capital Fixed Investment Companies of Fixed Capital shall not be able to receive funds from the public, in the forms expressed, for an indefinite period or for a shorter term than is determined by the Ministry of Economy and Finance.

Section II. Capital Investment Companies of Fixed Capital

Art. 20. Applicable legislation and social name.

1. Capital Fixed Investment Companies of Fixed Capital shall be governed by the provisions of Law 46/1984, in this Regulation, and as not provided for in that Regulation, in the Law of Limited Companies.

2. The name of the 'Mobiliary Investment Company', or its abbreviation 'SIM', must necessarily be included in the company's social reason.

Art. 21. Requirements for incorporation.

The following requirements will be required for your access to the Administrative Registry:

a) Social object. They shall have as their exclusive social object the acquisition, holding, enjoyment, general administration and disposal of transferable securities and other financial assets in the form provided for in this Regulation, in order to compensate for an appropriate composition. of its assets, risks and types of performance, without any majority economic or political participation in other companies.

b) Nationality. They must be Spanish companies of Spanish nationality formed in accordance with the legal regime in force and therefore registered in the corresponding Commercial Registry, domiciled in the Spanish territory and with its central administration in the same.

c) Social Statutes. The Statutes of the Company must contain the following particulars:

Whether or not there is a possibility to entrust management of social assets to a third party, as provided in the following article.

General criteria or rules to be adjusted for your investment policy.

Rules on the constitution and operation of the Audit and Management Board, in accordance with the provisions of Articles 23 et seq. of this Regulation.

d) Remuneration or special benefits. The remuneration or benefits for the founders or promoters provided for in the Companies Act shall be prohibited.

Art. 22. The administration of the Society.

1. They shall be organs of administration and representation of the Company as determined in their Statute, in accordance with the requirements of the law on Limited Societies.

2. Notwithstanding the foregoing, the General Shareholders ' Meeting may agree, when provided for in the Statute of the Company, that the management or administration of the assets forming the social assets, either in full or in part, is entrusted to one of the Management Companies of Carteras, referred to in Title IV of Law 46/1984, of 26 December, regulating the institutions of collective investment, to a company or agency of securities, or to one of the entities of the Article 76, second subparagraph (a) of Law 24/1988 of the Securities Market, or only in the event that it is assign the overall management of such assets together with other functions of administration or representation, to a Management Society of Collective Investment Institutions. The eventual agreement of the General Board shall be elevated to public deed and entered in the Commercial Register and in the corresponding Administrative Registry.

3. The agreement referred to in the previous paragraph shall not relieve the management bodies of the Company of any of the obligations and responsibilities imposed on them.

Art. 23. Audit regime.

1. The annual accounts and the management report of the Mobiliary Investment Companies shall be audited, subject to the application of the provisions of Article 26 (c) of the Securities Market Act.

2. The Statutes of the Company shall provide for the existence of a Management and Audit Control Commission, which shall be constituted upon request, at the time of the formation of the Company or at any later time, a number of shareholders representing at least 10 per 100 of the share capital. The application shall be made in accordance with the procedure laid down in Article 1 (2) of Regulation (EEC) No 3030/1 on the application of the rules of procedure laid down in Article 2 of the Treaty. provided in the following paragraph and in the Social Statutes.

In the absence of such a request, the Commission shall not be constituted and its functions shall be performed in accordance with the general rules of the Company.

3. The Management and Audit Control Board shall be composed of a number of shareholders, elected by the General Board in such a way as to ensure the presence of minority shareholders.

The maximum number of Vocals will be ten. Each shareholder or group of shareholders representing 10 per 100 of the share capital may designate a Commission Vocal.

The Vowels of the Commission may not be a member of the Board of Directors or organ that does its own times, nor shall they be Directors or Power of the Company.

Art. 24. Operating rules.

1. The Commission shall elect its Chairman and Secretary from among its members. In the case of equality in voting to designate these posts, preference will be given to candidates supported by the members of the Commission who represent a smaller number of shares in the Company. The agreements shall be adopted by a majority, deciding in the event of equality of the President's vote of quality.

2. The Commission shall meet when determined by the President, who shall have to convene it in the following cases:

(a) Where the appointment of the Auditor is appropriate in accordance with the rules in force.

b) When requested, in writing addressed to the President proposing the order of the day, any of its members.

The call will be made in order to ensure your knowledge by the Vocals, in the deadlines and forms that establish the Statutes of the Society. The Commission shall be validly constituted when at least three Vocals are present.

Art. 25. Functions of the Audit and Management Control Commission.

These are the functions of the Audit and Management Control Commission:

(a) Seek knowledge of the economic-financial situation of the Company by all shareholders, ensuring the elaboration and timely dissemination of the information documents referred to in Article 10.

b) Appoint by majority the Auditor to intervene in the verification of the annual accounts.

c) Any other faculty assigned to you by the Statutes of the Company.

In order to carry out these tasks, the Commission may regularly obtain the relevant information from the bodies of the social administration. It may also require the Board of Directors, in writing by proposing the order of business, to convene the General Meeting of Shareholders under the terms of Article 96 of the Company Law.

Art. 26. Investment of the asset.

1. Mobiliaria Investment Companies shall have at least 90 per 100 of their assets invested in assets referred to in Article 17 of this Regulation.

2. The companies shall have three months in which to make the investment of the cash contributions received on the basis of the capital formation or increase, and of a period of one month to reinvest the resources from the funds. enajenations.

Art. 27. Deposit of securities and financial assets.

The transferable securities and financial assets that form part of the portfolio of the Mobiliaria Investment Companies must be deposited with the legally qualified entities for the exercise of this function. Cash must be deposited in Deposit Entities.

Art. 28. Operations.

Mobiliaria investment companies will conduct their operations in the manner provided for in Article 8 of this Regulation. In the case of exclusion of securities from official listing, or where the official listing is suspended, they may only be disposed of by means of the securities auction procedure laid down in Chapter XVI of the Regulation of the Official Exchanges of Trade, unless the Statute of the Company provides otherwise.

Real estate should be pre-assessed in the form provided for in the mortgage market legislation, provided that the selling price is lower than its book value.

Art. 29. Assessment criteria.

The listed transferable securities shall be in the Balance sheet at a price not exceeding the average official price of the last month of the financial year; if no such contribution has been made or the price is suspended, greater than the last fixed change, unless a lower price is provided in a manner.

Art. 30. Annual accounts.

1. The Directors of the Company will be required to formulate, within the first three months of each financial year, the Balance Sheet with the Profit and Loss Account, the results distribution proposal and the management report. The social year shall always be adjusted to the calendar year.

2. Within the fourth month of each financial year, they shall forward these documents, together with the Audit report, to the National Securities Market Commission.

3. They shall also draw up the information documents referred to in Article 10 and make them public in the form provided for therein.

Art. 31. Determination of results and their distribution.

1. The determination of the results will be done in the form provided for in the Law of Companies and in the Statutes of the Society, in which it does not object to Law 46/1984.

2. The results of the disposal of transferable securities and other financial assets shall be determined on the basis of the value or cost price of the securities to be found according to the weighted average cost or the identification of the items. The General Board of the Company shall approve the chosen system, which shall be maintained at least three full exercises.

Financial assets shall be shown in the Balance sheet at a price not exceeding the average price of the last month of the financial year.

3. The results of the exercise will be distributed in accordance with the provisions of the Company Law and the Statute of the Company, in which the regulatory legislation of the Collective Investment Institutions is not opposed. In no case shall unrealised capital gains be distributed. For these purposes, the delivery of shares released from them shall not result in the distribution of results, without prejudice to the corresponding tax regime.

4. The Minister for Economic Affairs and Finance and, with his express rating, the National Securities Market Commission, will dictate the necessary provisions for the development of the criteria for valuation, and for drawing up the annual accounts to which refer to this article and the foregoing.

Section III. Variable Capital Investment Companies.

Art. 32. Basic features.

1. Capital of variable capital investments are those whose capital corresponding to the shares in circulation is liable to increase or decrease within the limits of the maximum statutory capital and the initial fixed capital, by means of the the sale or acquisition by the Company of its own shares in the terms set out in the following article, without the need for agreement of the General Meeting.

2. These companies must necessarily take the form of the Company and will be governed by the provisions of this Section, applying them in the absence of the rules regarding the Mobiliary Investment Companies of Fixed Capital and, in its defect, the Companies Act.

3. In the writing of the constitution of the Company and its Statutes, in addition to the requirements laid down in Article 9 of the Law on Limited Companies, they shall be expressed:

(a) The Company's social reason, in which the name "Socio de Inversión Mobiliaria de Capital Variable", or its abbreviation "S.I.M.C.A.V.", must necessarily appear.

(b) The social object, limited exclusively to the activities listed in Article 2 of this Regulation.

(c) The initial capital, which may not be less than the minimum set out in Article 12, by expressing the number of shares in which it is divided and the nominal value of the shares.

(d) The maximum statutory capital, with the particulars detailed in the preceding paragraph.

(e) The initial capital, which may not be less than the minimum set out in Article 12, by expressing the number of shares in which it is divided and the nominal value of the shares.

(d) The maximum statutory capital, with the particulars detailed in the preceding paragraph.

e) The commitment to meet the requirements of the admission and stay of their shares in the official listing.

f) The designation of an authorized Depositary.

g) Whether or not there is the possibility of entrusting the management of social assets to a third party, in accordance with the provisions of Article 22.

h) The general rules or criteria to be adjusted for your investment policy.

4. The initial capital must be fully subscribed and paid up from the time of the formation of the Company. The maximum statutory capital may not exceed the initial capital by more than 10 times.

5. They shall act as a Variable Capital Company only as long as they remain registered in the relevant administrative register and their shares are admitted with full effect on the official listing. In cases of suspension or exclusion of official listing, the rules of the Capital Investment Company of Fixed Capital shall apply to them.

6. Shares representing the maximum statutory capital not subscribed to or subsequently acquired by the Company shall be held in a portfolio until they are put into circulation by the managing bodies in the form set out in the the following Article; the portfolio shares shall be held by the Depositary.

7. The title of the action shall necessarily express, in addition to the terms of general terms, the Company Law, the initial capital and the maximum statutory capital.

8. The exercise of the rights incorporated in the portfolio shares shall be suspended until they have been subscribed and disbursed.

9. The obligations, promissory notes or similar titles which they issue shall be subject to the limitation provided for in Article 20 of this Regulation. In no case can they be convertible into shares.

10. The decrease in the initial capital and the increase or decrease in the maximum statutory requirement shall be agreed by the General Board, with the requirements laid down by the Law on Limited Companies.

11. Shareholders shall not enjoy the preferential right of subscription in the issue or putting into circulation of new shares, even in those created in the event of an increase in the maximum statutory capital. The actions shall be put into circulation in accordance with the provisions of the following

.

Art. 33. Operating requirements.

1. The Company will purchase or sell its own shares in cash transactions, without delay, on the Stock Exchanges, either in the normal contract, or through a public offer to acquire or sell its shares. Both operational modalities shall take place provided that the purchase or sale price of their shares is, respectively, lower or higher than their theoretical value, as determined in accordance with this Article. Where the difference between the theoretical value and the official contribution is greater than 5 per 100 of the value, the Company shall necessarily intervene by buying or selling its shares, in accordance with the lower or higher price of the shares. theoretical value. In order to ensure the effectiveness of this essential feature of its operation, the Government may, according to the stock market situation, establish the obligation to intervene on the market with differences other than that of 5% by agreement. published in the "Official State Gazette".

For the purposes of this issue, the Company may put in circulation shares at a price below its nominal value and shall not be applicable as indicated in this respect in the Company Law.

2. The theoretical value of the stock will be the result of dividing the value of the Company's equity by the number of shares outstanding. For these purposes the securities and other financial assets of the Company shall be valued at the stock price of the previous day or its equivalent. Non-contracted financial assets on the organised markets referred to in Article 17 shall be valued in accordance with the criterion of the amortisation value.

The write-downs of movable or immovable property that are part of the asset, the taxes on the social benefit and all operating expenses shall be provided on a daily basis for the exact determination of the value of the equity of the Company.

For the purposes of the preceding paragraph, a forecast of the expenditure which may be incurred shall be made before the beginning of each financial year. This forecast shall be made public in the first month of the financial year, in accordance with Article 10.1 (c) of this Regulation.

3. The results which are attributable to the acquisition and sale of their own shares may be distributed only where the assets, valued in accordance with the preceding paragraph, are higher than the paid-up share capital.

4. The Company will have to reduce the paid-up capital by reducing the nominal value of its shares in circulation, when the share capital would have decreased below two thirds of the subscribed capital. a year has elapsed without the asset being recovered. In the same proportion, the nominal value of the portfolio shares shall be reduced.

5. If, for any reason, the shares excluded from trading on the Stock Exchange are to be found in accordance with the provisions of Article 34 of the Securities Market Law and the rules that develop it, the Company shall guarantee the shareholder it intends to carry out. its shares the repayment of the theoretical value of the shares, fixed on the basis of the average changes in the last month of trading, through a public offer to all shareholders. If the notional value of the shares has changed after the exclusion of quotation, the public procurement offer may be made for a different price, equal to the theoretical value of the day preceding the day on which the offer is made.

6. The Minister of Economy and Finance and, with his express rating, the National Securities Market Commission will dictate the provisions necessary for the development of the provisions of the preceding numbers of this article.

Section IV. Mobiliaria Investment Funds

Art. 34. Constitution.

1. The Fund shall be constituted by public deed, granted by the Management Society and the depositary, in the form and with the requirements laid down in Article 9 and the effective contribution of the assets that integrate the assets.

2. The writing must necessarily contain:

(a) The name of the Fund, which must be followed, in any case, by the expression "Mobiliary Investment Fund", or its abbreviation, "F.I.M. ".

(b) The object, limited exclusively to the activities referred to in Article 2 of this Regulation.

(c) The equity of the Fund, which at the time of its constitution shall be at least 500 million pesetas.

(d) The name and address of the Management Society and the depositary, the data relating to the registration of the Gestora Society in the Commercial Registry and the Administrative Societies, as well as the identification of its Administrators.

e) The Fund Management Regulation, with the minimum particulars detailed in the following article.

Art. 35. Management Regulation.

1. The Management Regulation constitutes the set of rules which, in accordance with the legislation in force at any time, shall govern the Fund, and shall contain at least the following specifications:

a) The name of the Fund.

(b) The name and address of the Management and Depositary Society and the rules for the management, administration and representation of the Fund.

(c) Requirements for the replacement of the Management Society and the depositary.

d) The duration of the Fund, which may be unlimited.

e) The investment criteria and the rules for the selection of securities to be integrated into the Fund.

(f) The special investment plans offered to the unit-holders, specifying their characteristics in terms of minimum contributions and their revision, duration of the plan, the amount of fees payable by the subscribers of the the plans, rules of notice for cancellation by the participant, causes of termination by the Gestora Society, guarantees obtained from Financial Institutions, special rules of information and other circumstances of the plans.

g) Procedure for the issuance and redemption of the units.

h) Initial price of the shares at the time of the establishment of the Fund.

i) Maximum volume if it is considered appropriate to establish it, which may reach the total of shares owned by the same participant.

j) Characteristics of the certificates and the representative entries for the units.

k) Minimum and maximum fees inherent in the subscription and redemption of shares.

l) Discounts in favor of the Fund to practice in reimbursements.

m) Fixation of the way in which the management of the management company and the remuneration for the services of the depositary are to be calculated.

n) Criteria for result distribution.

n) Form and time limits for the effective payment to unit-holders of distributed profits.

o) Requirements and ways to implement the modification of the contract and the Regulation, and the conversion of the Fund into Society.

p) Causes of dissolution of the Fund and rules for its liquidation, indicating the way to distribute in such a case the patrimony between the members of the Fund and the advertising requirements that must be met in advance.

q) Form or criteria for the designation of the Auditors and, where appropriate, special information rights on the financial statements of the Fund and the Management Society to be recognised as members.

2. Any modification of the Regulation, once authorized, must be published in the "Official Gazette of the State" and communicated by the Management Society to the members within ten days of the notification of the authorization. Where the amendment concerns the investment policy, distribution of results, requirements for the modification of the contract or the Management Regulation, replacement of the Management or Depositary Society, conversion of the Fund of the Company, the establishment or modification of the Management, Refund or Securities Deposit Commissions, the unit-holders may choose, within one month from the date of publication in the "Official State Gazette", referred to in number 4; or of the date of referral of the communications referred to in the same number, if it is later, for the reimbursement of their shares, without deduction of reimbursement or expense, for the settlement value determined in accordance with the provisions of Article 41, corresponding to the date of registration of the corresponding change in the records of the National Securities Market Commission. This same duty of information on the part of the Management Company and the right of reimbursement of the members will govern in case of establishment or elevation of the Reimbursement Commission, even if it does not involve modification of the Regulation, but in this The settlement value shall be that corresponding to the date of entry into force of the decision taken by the Management Company.

3. If, as a result of the exercise by the members of the faculty provided for in the preceding number, reimbursements for a total amount equal to or greater than 35 per 100 of the assets of the Fund are requested, this shall be deemed to constitute a relevant for the purposes of Article 10 (4

.

If the requested reimbursements reach a total amount equal to or greater than 50 per 100 of the Fund's assets, it may be dissolved.

4. The National Securities Market Commission will require, as a prerequisite for the registration of any modification in its administrative records, the presentation of the documentation that accredits the fulfillment of the obligations of publication and communication, as well as the possibility that the members may have exercised the right of separation in the special conditions laid down in issue 2 of this article. With respect to the obligation of publication and communication, the presentation of the extract of publication in the "Official Gazette of the State" and the justification for proper referral of the communications shall be deemed to be accredited.

Art. 36. Public subscription of shareholdings.

1. In order to integrate the assets necessary for the formation of the Fund, the Management Company and the Depositary, promoters of an Investment Fund, may carry out a public offer of the shares of the Fund, which shall be subject to the to the following rules:

(a) The intention to make such an offer shall be included in the general documentation concerning the authorisation of the Fund, in compliance with all the procedures provided for in Article

.

(b) The public offering, in terms of securities, shall be in accordance with the rules laid down in Title III of Law 24/1988 of 28 July 1988 on the Securities Market, with the same special rules as laid down in the number 1 of the Article 13 of this Regulation.

2. The resources captured by the offer of future participations shall be deposited in the Depositary in special account opened in the name of the contributors and shall be materialised in debt securities of the State or the Autonomous Communities, or in deposits or deposits. Term or view accounts.

3. After one year from the authorization of the public tender without the Fund having been constituted as the legal minimum estate has not been reached, the account shall be wound up, giving the contributors the amount of their (a) respective contributions and increases in equity or income, without any impact on them.

4. This public subscription and its liquidation shall be subject to verification by the experts in the form set out in this Regulation. In such cases, an auditor shall be appointed by the National Securities Market Commission among those listed in the Official Register of Auditors.

5. Provided that the legal minimum property is reached, the Fund shall be constituted within one month, provided that no year has elapsed in accordance with the provisions of paragraph 3, the ownership of the goods shall be transmitted in the same act. existing with earnings and accrued income. The contributions to the Fund shall be recognised at the same time for the amount equivalent to their respective contributions.

6. In the procedure for the public subscription of shares, the Management Company and the depositary shall respond to the members and third parties in the form set out in the Companies Act.

Art. 37. Equity investment.

1. The Fund's asset, which will increase or decrease at any time by subscription or redemption of shares, will be invested as follows:

(a) An average monthly percentage of daily balances of the Fund's assets of not less than 80 per 100 shall be invested in securities referred to in Article 17.

(b) Other resources may be invested, in addition to the securities referred to in the preceding subparagraph, in securities that are of special liquidity as provided for in Article 49 of this Regulation.

2. The Management Company shall have a period of three months to make the investment of the cash contributions obtained in connection with the establishment of the Fund.

Art. 38. Deposit of securities and financial assets.

The securities, financial assets and cash integrated into the Fund shall be in the custody of the Depositary. Cash, in any case, must be in open account in Deposit Entity.

Art. 39. Operations.

The general operating rules for investment companies set out in Article 28 of this Regulation shall apply to the Investment Funds.

Art. 40. Administration.

The management and administration of the Mobiliary Investment Funds will be governed by the provisions of the Management Regulations of each Fund, and must necessarily be the responsibility of a Management Society of Collective Investment Institutions. of those covered by this Regulation, which may not be replaced in its functions by a management contract with third parties.

In no case may the acts and contracts made by the Gestora Society with third parties in the exercise of the privileges that correspond to them be challenged by default of administrative powers and provision Article 2 of this Regulation.

Art. 41. The shareholdings.

1. The equity of the Fund shall be divided into shares of equal characteristics, without nominal value, which confer on their holders a right of ownership over that property, adjusted to the terms that govern it legally and contractually.

2. The value of the holding shall be the result of dividing the equity of the Fund, as assessed in accordance with the rules referred to in Article 43, by the number of units in circulation.

3. The number of shares will not be limited and your subscription or refund will depend on the demand or the offer that you make.

4. The transfer of the shares, the establishment of limited rights or other charges and the exercise of the rights inherent in them shall be governed by the general provisions of the securities. In the event that such holdings are represented by means of account entries, they shall be fully implemented as set out in Articles 5 to 12 of the Securities Market Act.

5. The subscription of shares shall imply acceptance by the participant of the Regulation governing the Fund.

Art. 42. Subscriptions and refunds.

1. The Gestora Company shall be obliged to issue and refund shares in the Fund from the time it is requested by the interested parties, with the requirements set out in this Article.

2. The price of the shares, for the purposes of the subscriptions and repayments requested, shall be the daily value fixed, as provided for in paragraph 2 of the previous Article, by the Management Company, as amended, if appropriate, by the discounts in favour of the Fund or of the Management Society which the Fund Regulation determines.

3. For the purposes of fixing that price, the equity of the Fund may be valued at stock exchange or equivalent changes corresponding to the business day preceding that of the application, the same day or the following day, as provided for in the Fund Regulation.

4. In the case of automatic re-investment, the applicable price shall be that corresponding to the date of the accrual of the recognised benefit to the participant.

5. In any case, the value that is flagged for the subscription will be the same as the one that will govern for the refunds requested at the same time.

6. The special investment plans offered to the unit-holders may determine the price for the subscription of shares from the plan's shares, on the basis of a fixed day included in the payment period for those shares.

7. Payment of the refund shall be made by the Depositary within three working days of the submission of the application to the Management Company.

8. By way of derogation from the above paragraph, the Fund Management Regulations may provide that reimbursements by more than 50 million pesetas or any other higher shall require for full effectiveness the advance notice. to the Management Company ten days in advance of the date of filing of the request for reimbursement. Also, where the total sum of the reimbursed to the same participant, within a period of ten days, is equal to or greater than 50 million pesetas, the Management Company may require the requirement of the notice for the new requests for reimbursement which, whatever the amount, makes the same contribution to you within 10 days of the reimbursement of late payments.

9. Where the hiring of listed securities has been suspended and such securities and other similar securities, not yet listed, issued by the same Company are part of the Fund, the redemption and subscription of the holding shall be made at the price determined in accordance with the preceding paragraphs of this Article, provided that the valuation of the securities referred to does not exceed 5 per 100 of the value of the equity and is provided for in the Fund Regulation.

In any other case, the subscription and redemption of shares shall be made in cash for the part of the share price that does not correspond to the values quoted in the preceding paragraph, making the difference effective where the contract is resumed and in the light of the listing of the first day in which it occurs. In the subscription the participant, and in the reimbursements the Society Gestora, will make note that they undertake to make effective the calculated differences in the form expressed, owing the Gestora Society to proceed to the compensation of differences the participant requested the redemption of the shares before the circumstances that resulted in his/her debit were exceeded.

10. In exceptional cases, the National Securities Market Commission may authorise, at the reasoned request of the Management Company and where provided for in the Management Regulation, that the redemption of the shares is made in securities that are part of the Member of the Fund. The National Securities Market Commission shall determine in such circumstances the terms and conditions under which such exceptional power may be used.

Art. 43. Valuation of the estate.

1. The value of the equity of the Funds shall be that resulting from the deduction of the accretive accounts of the sum of all its assets, valued subject to the rules contained in this Regulation and in the provisions that develop it.

2. Securities admitted to trading on the Stock Exchange shall be valued at changes on the last trading day prior to the trading day referred to in the valuation. However, for the sole purpose of determining the price of the units, they may be valued at the same day or next stock exchange or equivalent if provided for in the Fund Management Regulation.

Art. 44. Distribution of results.

1. The results shall be the result of deducting from all the returns obtained by the Fund the Management Society Commission and the other expenditure provided for in the Rules of Procedure of each Fund, in particular those of audit and custody.

2. For the purposes of determining the value or cost price of the listed assets, the weighted average cost systems or the identification of items may be used in accordance with the provisions of the Fund Regulation, chosen over at least three full exercises.

3. The Regulation of the Fund shall establish the periods of determination of its results, as well as the form of its distribution.

4. In no case shall the unrealised increases in equity be distributed. Capital returns due to transferable securities and financial assets that are part of the assets are not equity increases. For these purposes, the delivery of shares in the Fund released from such increases is not a distribution of results.

Art. 45. Commissions.

1. Management companies may receive from the Funds a management fee as remuneration for their services. The ceilings of that committee shall be set out in the Fund's Management Regulation on the basis of their assets, their yields, or both variables.

2. The commission shall apply in general to all members, except as provided for in Article 35.1 (f) of this Regulation, and its initial and subsequent amendments shall be made public in the manner provided for in Article 10.1 (c).

3. Management fees shall not be collected in excess of the following limits:

(a) Where the commission is calculated solely on the basis of the Fund's assets, 2,5 per 100 of the Fund.

b) When calculated solely on the basis of results, 20 per 100 of them.

c) When both variables are used, 1.5 per 100 of the heritage and 10 of the results.

The Minister of Economy and Finance is authorized to vary the above percentages up to a maximum of 25 per 100 of the respective limits.

4. Subscription and reimbursement fees may not exceed 5 per 100 of the price of the shares.

5. The Depositary's commission may not exceed 4 per 1,000 per year of the nominal value of the protected estate. Exceptionally, and subject to the authorization of the National Securities Market Commission, the Commission may be higher in the case of Depositaries who have to fulfil their duties in full with the foreign national. Independently of this commission, the Depositary may receive from the Funds commissions for the conduct of purchase or sale operations, the collection of coupons or other similar activities, provided that they are in accordance with the general rules of procedure of the corresponding tariffs.

Art. 46. Annual accounts.

1. The Investment Fund Management Companies shall, within the first three months of each financial year, formulate the Balance Sheet, the Results Account and the Explanatory Report for the previous year of the Fund administered.

2. The documents referred to in the previous paragraph shall be audited in accordance with the provisions of Article 60 et seq. of this Regulation.

3. Within the first four months of each financial year, the Management Companies shall submit to the National Securities Market Commission the above accounting documents, together with the audit report.

4. The financial year for the Managing Societies and for the Investment Funds shall be the calendar year.

5. The Minister of Economy and Finance and, with his express rating, the National Securities Market Commission, shall make the necessary provisions for the development of the precepts contained in Articles 43 and 44 and in the present.

Art. 47. Dissolution and liquidation.

1. The completion of the term referred to in the contract of incorporation, the agreement of the Gestora and the Depositary Company when the Fund was constituted for an indefinite period, the fulfillment of the expected assumptions, shall be causes of dissolution of the Fund. in this Regulation, and the other causes to be established in its Management Regulation.

2. Once the Fund has been dissolved, the liquidation period will open, with the right of reimbursement suspended. The Gestora Company, with the contest of the Depositary, will act as liquidator, proceeding with the utmost diligence and in the shortest possible time to alienate the values and assets of the Fund, and to satisfy and to perceive the credits. Once these operations have been carried out, they shall draw up the relevant financial statements and determine the share corresponding to each participant.

These states should be verified in the manner provided for in this Regulation. The Balance Sheet and Results Account must be published in the "Official State Gazette" and in one of the largest newspapers of the address of the Gestora Society.

After the period of one month from the date of its publication without any complaints, the distribution of the assets among the unit-holders shall be carried out. The non-claimed fees within three months shall be entered in deposit with the Bank of Spain or the General Deposit Box, and shall be made available to its rightful owners.

If there are complaints, the competent court or court may be required to make deliveries to the unit-holders as a provisional settlement.

Once the total distribution of the assets has been effected, the Management Society and the Depositary shall request the cancellation of the seats concerning the Fund in the Commercial Registry and in the corresponding Administrative Registry.

Section V. Investment Funds in Money Market Assets

Art. 48. Applicable legislation and exclusive name.

1. The Investment Funds in Monetary Market Assets shall be governed by the provisions laid down in this Section and, failing that, by the same rules as the Mobiliary Investment Funds.

2. Its name must be followed by the expression "Investment Fund in the Assets of the Monetary Market" or its abbreviation "FIAMM".

Art. 49. Equity investment.

1. An average monthly percentage of daily balances of the Fund's assets of not less than 90 per 100 shall be invested in fixed income securities admitted to trading on an official secondary market or, in the terms authorised by the National Commission of the Securities Market, in other securities of those referred to in Article 17, which, due to their short-term maturity or the guarantees of their performance, enjoy high liquidity.

2. They may not be part of the assets of these Funds, shares, convertible bonds or which entitle them to participate in capital increases or assets with any remaining repayment or repayment periods exceeding those resulting from the fixed in accordance with the provisions of the first paragraph of this Article.

3. The Funds referred to in this Article shall not invest more than 40 per 100 of their assets in fixed income securities which do not enjoy high liquidity.

4. The Minister for Economic Affairs and Finance or, with his express rating, the National Securities Market Commission, shall, in general, establish the criteria for determining when a value is to be understood to be highly liquid.

The Minister of Economy and Finance will also be able to modify the percentage indicated in the previous number.

Art. 50. Participations.

1. The Management Company shall be obliged to reimburse the shares from the time it is requested by its holders, with the provisos provided for in paragraph 3 of this Article.

2. The payment of the refund by the Depositary shall be made on the working day following the submission of the application.

3. By way of derogation from the above paragraph, the Fund Regulation may provide that reimbursements of more than 1 billion pesetas or any other premium shall require the full effectiveness of the notice to the Company. Gestora five days in advance of the filing date of the reenbag application.

Art. 51. Valuation of assets and imputation of results.

1. The value of the Fund's assets shall be the result of deducting from the sum of its assets the creditor accounts.

2. The valuation of securities admitted to official listing shall be carried out in accordance with Article 44 of this Regulation. The other financial assets which form part of the equity shall be valued, taking account of the amortisation period and its intrinsic characteristics, using the criteria of amortisation and market price value in the manner determined by the Minister of Economy and Finance and, with his express rating, the National Securities Market Commission.

3. On a daily basis, the Gestora Company will determine the value of the Fund's assets and their shares. The management fee, the taxes to be taxed on the profits, including those that fall on the unrealised capital gains on the portfolio assets, and the costs incurred by the Fund shall be made daily.

4. The Minister of Economy and Finance and, with his express rating, the National Securities Market Commission, shall make the necessary provisions for the development of the precepts contained in the preceding numbers of this Article.

Art. 52. Commissions.

1. The management committee may not exceed the following limits:

(a) Where the commission is calculated solely on the basis of the Fund's assets, the Fund's 1.5 per 100 assets.

b) When calculated solely on the basis of results, 15 per 100 of these results.

c) When both variables are used, 1 per 100 of the patrimony and 5 per 100 of the results.

The Ministry of Economy and Finance is authorized to vary the above percentages up to a maximum of 25 per 100 of the respective limits.

2. Subscription and remittance fees may not exceed 1 per 100 of the price of the shares.

3. The remuneration of the Depositary shall be freely agreed, but shall not exceed 1,5 per 1,000 annual of the assets held. Independently of this commission, the Depositary may receive from the Funds commissions for the conduct of purchase or sale operations, the collection of coupons or other similar activities, provided that they are in accordance with the regulatory standards of the corresponding rates.

CHAPTER III

Collective Investment Institutions Management and Depositary Societies

Art. 53. Societies Gestoras de Inversiones de Inversión Colectiva.

1. Collective Investment Institutions Management Societies shall meet the following requirements:

(a) Form and registration: May act as Corporate Investment Institutions of Collective Investment Institutions Limited Companies whose share capital is represented by nominative shares and which, in compliance with the requirements listed in the following paragraphs, are duly registered in the corresponding Register of the National Securities Market Commission.

(b) Exclusive name: The name "Sociedad Gestora de Inversión de Inversión Colectiva" or its abbreviation "SGIIC" must be given below.

c) Social object: The administration and representation of Collective Investment Institutions will be the exclusive social object, with the adoption of investment or divestment decisions being inselectable, without prejudice to the indicated in number 2.

It will be the object of cancellation of the registration in the Register of the National Securities Market Commission of the Management Companies that do not assume the administration of a Collective Investment Institution within the deadline of the year next to that enrollment.

d) Own and complementary resources: They will be available at the time of registration of the National Securities Market Commission of a minimum social capital of 50 million pesetas, in full paid out.

These own resources, as long as they do not exceed the minimum figure set out in the preceding paragraph, must be invested, at least 60 per 100, in debt securities of the State or Autonomous Communities, or in securities admitted to trading on a Stock Exchange. The remaining 40 per 100 may be invested in any assets appropriate to the fulfilment of the social purpose, except for units of managed institutions.

Own resources should be increased by a proportion of 5 per 1,000 of the effective value of the equity of the Collective Investment Institutions that they administer, as long as it does not exceed 10 billion pesetas, and 3 per 1,000, in excess of the amount indicated. For these purposes, the Company's own resources of 40 per 100 of its estimated profits, determined according to the National Securities Market Commission, will be considered.

e) Society Administration: A Board of Directors shall be included among its governing bodies.

(f) Alien financing: In no case may they issue bonds, promissory notes, effects or similar securities, or give a guarantee or pledge the assets in which the minimum own resources referred to in paragraph (d) are realised. previous.

You can only go to the credit to finance the free disposal assets, and with a maximum limit of 20 per 100 of your own resources.

2. Prior to the authorization of the National Securities Market Commission, the Management Companies of Collective Investment Institutions may contract the performance of purely administrative and foreign asset management functions. Entities having the domicile and the effective seat of administration outside the national territory.

The application must be filed by the Management Company registered in the Administrative Registry, which shall be liable to the members or shareholders of the damages that may be derived from the performance of the the foreign managing authority, unless it has been imposed by the Mobiliary Investment Company for which the management is concerned, which shall be credited.

In the authorisation procedure, as provided for in Article 9.2 of this Regulation, it is necessary to verify that the foreign entity offers guarantees similar to those offered by the Management Companies regulated in the the number 1 of this article.

The contracts to which this number refers must ensure continuity in the management of foreign assets, so that those contracts are not resolved by the mere replacement of the Spanish Gestora Company, except for that when the replacement is agreed, the foreign entity shall also be decided.

Art. 54. Functions of the Investment Fund Management Societies.

Investment Fund Management Societies will have the following functions:

(a) Compose the Fund Management Regulation and grant with the Depositary, both the corresponding public deed of incorporation of the Fund and, in its day, the modification or liquidation of the Fund.

b) To exercise all rights inherent in the securities integrated into the Fund, to the sole benefit of the members.

(c) Carry out the accounting of the Fund, with the proper separation of the Management Society, and carry out the accountability in the manner provided for in this Regulation.

In those cases where the shares are represented by means of account entries, the Management Company must grant, together with the Depositary, the public deed referred to in Article 6. of the Law of the Stock Market.

d) Determine the value of the shares in the form and effects provided for in this Regulation.

e) To issue, in union with the Depositary, the certificates of participation in the Fund and other documents provided for in this Regulation.

(f) Repayment of the units, indicating to the Depositary their value in accordance with the rules established for this purpose.

g) Agree, if appropriate, to distribute the results of the financial year, in accordance with applicable rules.

h) Select the securities to be made up of the Fund, as provided for in its Rules of Procedure, and order the Depositary to purchase and sell securities.

Art. 55. Collectors of Collective Investment Institutions.

1. The banks, savings banks, including the Spanish Confederation of Savings Banks, the Postal Fund, the Companies and the Securities and Credit Unions, may be Depositary. In any event, the cash flow must be deposited in a Deposit Entity.

2. No Entity may be a Depositary of Investment Funds managed by a Company belonging to the same Group, or of Capital of Variable Capital Investment Companies in which the same circumstance is of the same circumstance, except where the following separation rules:

a) Inexistence of Common Directors or Administrators.

b) Effective management of the Management Society by persons independent of the Depositary.

c) That in the Portfolio of the Institution there are no securities issued by the Depositary that exceed 1 per 100 of the Institution's Asset.

d) That the Management Society and the Depositary have different addresses and physical separation of their activity centers.

3. Without prejudice to the fulfilment of the requirements referred to in the preceding number, where the Depositary belongs to the same group as the Management Company of the Investment Fund or the Capital Investment Company of Variable Capital to which you perform that function, the following rules apply:

(a) The Management Company or, as the case may be, the Variable Capital Investment Company and the Depositary shall be required to arbitrate a set of measures to ensure that the information derived from their respective activities is not finds the extent, directly or indirectly, of the staff of the other Entity. Together with the application referred to in Article 9.1 of this Regulation, both entities shall provide the documentation to ensure the development of their functions autonomously and the prevention of conflicts of interest between those of the group of Entities to which they belong and those of the members of the Managed Fund.

(b) The Management Company or the Mobiliary Capital Investment Company shall state, in the information documents referred to in Article 10 of this Regulation, the exact type of relationship that it binds to the Depositary, taking as a reference, where appropriate, the enumeration of circumstances contained in the second paragraph of Article 4. of Law 24/1988, of the Securities Market.

(c) The Management Company or the Variable Capital Investment Company shall refer in the Quarterly Report and in the Annual Report to the acquisition or sale of securities in which the Depositary is seller or buyer, respectively.

4. The Depositary shall be responsible for the custody of securities, without this liability being affected by the fact that it is entrusted to a third party by the administration of part or all of the securities whose custody it is entrusted with.

5. None of the Entities mentioned in number 1 of this article may use the denomination of the Depositary of Collective Investment Institutions more than in relation to the functions of depositary in respect of these.

6. Each Collective Investment Institution shall have one Depositary, without prejudice to the existence of different securities or cash deposits. No Entity may be simultaneously a Management and Depositary Society of the same Collective Investment Institution.

7. The Ministry of Economy and Finance, or with its express rating the National Securities Market Commission, are empowered to determine the conditions under which the deposit of foreign securities is to be made.

Art. 56. Functions of the Depositary of the Variable Capital Investment Company and the Investment Funds.

The Securities and Investment Funds Depositories of Capital Investment and Investment Funds will develop the following functions:

a) Compose the Investment Funds Management Regulation and grant the public deed of incorporation, as well as the modification or settlement scriptures. Both functions should be developed jointly with the Gestora Society.

(b) The supervisory and supervisory function of the management carried out by the Management Societies of the Investment Funds or by the administrators of the Mobiliary Investment Societies shall be taken by the unit-holders or shareholders. Variable Capital. In the development of this function, Depositary will be required to communicate to the National Securities Market Commission any anomalies they detect in management.

(c) To issue, in union with the Management Company, the certificates of the units in the Investment Funds that are represented through those securities. They may also request the issuing of the certificates referred to in Article 12 of the Securities Market Act, in the case of the accounting records, on behalf and on behalf of the unit-holders, to the entities responsible for accounting records. participations represented by annotations in account.

(d) To comply with the subscription of the shares, charging the corresponding amount, the net of which will be paid into the Fund account. The commission planned for these cases for the Gestora Society will pay it into the account of the same, open in the Depositary itself.

(e) to satisfy on behalf of the Funds the repayments of shares ordered by the Management Company, the net amount of which shall be payable in the Fund's account. The discounted fee shall be credited to the Management Company in the account held in the Depositary bank.

(f) Paying dividends on shares and the profits of the shares in circulation, as well as completing the reinvestment orders received.

g) To comply, on behalf of the Institutions, on the purchase and sale of securities, and to collect the interest and dividends accrued on them.

h) Receive the institutions ' values and make them deposit, guaranteeing their custody and issuing the supporting documents.

j) Receive and safeguard the institutions ' liquid assets.

Art. 57. Replacement of Management and Depositary Societies.

1. The Management Company or the Depositary may request its replacement when it considers it relevant, by written joint submitted to the National Securities Market Commission. The new Management Company or the new Depositary, as appropriate, shall be accompanied by such a letter in which the substitute declares itself willing to accept such a function, and interests the corresponding authorization or registration, as appropriate. In no case may the Management Society and the Depositary give up the exercise of their respective duties, until all the requirements and formalities for the designation of their substitutes have been fulfilled.

2. The insolvency proceedings of the Management Company or the Depositary shall not result in the dissolution of the Collective Investment Institution administered or guarded, but the Entity concerned shall cease in the management or custody of the Institution.

3. In case of cessation of any cause of the Gestora Society, the management of the Institution shall be entrusted automatically and provisionally to the Depositary, who shall be responsible for the exercise of all the functions of the institution. If, within one year, no new Company is registered in the Administrative Register and is prepared to take over the management, the Fund shall be dissolved, the settlement period being opened. If the Depositary is terminated by the Depositary, the assets of the Fund shall be deposited with the Bank of Spain and, in the event of no new Depositary arising within one year, the Fund shall also be dissolved, the period of liquidation. The settlement shall be carried out by the Management Company or the Depositary, as the case may be, in the form provided for in Article 47 of this Regulation.

4. The replacement of the Management Company or the Mobiliary Investment Fund Depositary, as well as the changes that occur in the control of the first, will confer on the members a right to the repayment of their shares in the terms laid down in Article 35 of this Regulation.

5. For the purposes of the preceding number, a change in the control of the Management Company of a Mobiliary Investment Fund shall be deemed to exist when it accumulates over a natural or legal person other than that which previously held it, the Decision-making power on that Company.

6. The replacement and the change in control referred to in the preceding numbers must be published by means of an advertisement in the "Official State Gazette" and in two national newspapers.

Art. 58. Obligations and responsibilities.

1. Management and Depositary Societies shall act in the interests of the participants in the investments and assets that they administer and preserve.

2. The Management and Depositary Societies shall be liable to the members of all the damages which they shall cause for failure to comply with their obligations. The Management Society and the Depositary shall be required to take this responsibility on behalf of the members.

3. If the Depositary is responsible for the damages, the liability may be claimed by the participants either directly or indirectly through the Gestora Society. However, it shall not be required to make such a claim, but upon request by partners or members representing at least 10 per 100 of the capital or assets, respectively.

4. The system of information on significant participations in the same terms previewed for the partners of the Mobiliaria Investment Societies will be of application to the partners of the Management Societies of Collective Investment Institutions. In Articles 5 and 6 of this Regulation, with the following peculiarities:

a) The significant percentages will be 20 per 100 and all their multiples up to 100 per 100.

(b) The first subparagraph of Article 6 (3) shall not apply.

CHAPTER IV

Other Financial Collective Investment Institutions

Art. 59. Applicable legislation.

1. Institutions of collective investment of a financial character not classified in the Law shall be considered to have as principal activity the management and investment of the law, which, together with the characteristics laid down in Article 1.1 of this Regulation any financial asset class.

2. The provisions of Chapters I and V of Law 46/1984, as well as Articles 10 and 11 thereof, shall apply to those institutions, extending to all their assets the deposit obligation laid down in Article 11 (3). They shall also be subject to the relevant implementing rules contained in this Regulation and their accompanying provisions.

3. The Minister for Economic Affairs and Finance may lay down the implementing rules for such institutions. Such rules should be based on the principles of investor protection and the analogy with the legally established collective investment institutions scheme.

CHAPTER V

Audit and Inspection

Art. 60. Accounting verification.

The review and verification of the accounting documents of the Collective Investment Institutions will be carried out in accordance with the provisions of Law 19/1988 of July 12, of Audit of Accounts, and of the provisions that the develop.

Art. 61. Audit of the Collective Investment Institutions.

The audit of the accounts of the Collective Investment Institutions shall be extended to the accounting documents of this class of institutions, in accordance with the provisions of the specific rules of the institutions and, where appropriate, in the Law of Limited Companies.

Art. 62. Designation of experts.

Auditors of accounts shall be appointed by the General Boards of the Mobiliary Investment Companies or by the Management Societies of the Investment Funds. The designation shall be made in the first six months of the first economic year to be examined, shall be borne by one of the persons or entities referred to in Article 6 of the Audit of Accounts Act and shall be notified to the National Securities Market Commission, which will also be notified of any modification in the designation of the Auditors.

In all the non-foreseen in this Regulation you will be subject to the specific auditing of accounts regulations.

Art. 63. Inspection.

The National Securities Market Commission is responsible for the inspection of the institutions and companies governed by this Regulation.

CHAPTER VI

Sanctioning regime and intervention and replacement measures

Art. 64. Classification of violations.

The infractions are classified according to their respective transcendence in three categories: Leves, serious and very serious. The recidivism of the same infringement, sanctioned by final judgment, within a period of three years, shall determine that it is qualified according to the immediate superior category. However, in minor infringements, it is understood that there is a repeat offence when the same offence has been breached three times in the same year, or six times within the three-year period.

Art. 65. Minor infractions.

These are minor offences involving mere delays in the fulfilment of obligations of a formal nature or non-compliance with minor substantive rules of a substantive nature, provided that they do not injure or do so. slightly, the interests of shareholders, members or third parties. They have this condition:

(a) The referral, outside the timelimits laid down in regulation, of the information which the Institutions and their Managers have to give in accordance with the provisions of Article 10 of this Regulation.

(b) The delay in the publication of information which, in accordance with the same article, should be disseminated among the partners, members and the general public.

c) The keeping of accounting according to criteria other than those legally established.

(d) The excess investment in the coefficients set out in Article 4, provided that it is transitory and not repeated, and does not exceed 20 per 100 of the legal limits. For these purposes, it is understood that an excess is transitory when the three following circumstances are present: that the excess is not prolonged for more than five working days in a period of reporting of those established in the development of Article 10 (5); that the excess does not occur more than once in the same period, and that this situation is not repeated in more than two periods in an exercise.

e) Failure to comply with any other obligations or prohibitions laid down in the Law, in the Company of Limited Companies, in this Regulation or in the Statutes or Regulations of the Institutions which by its nature must not be qualified as a serious or very serious violation.

Art. 66. Serious infringements.

These are serious infringements of a breach of formal obligations or of substantive rules, where the action or omission is in serious and serious danger or seriously injures the interests of the shareholders, members or third parties. They have this consideration:

(a) The lack of referral of the information referred to in Articles 6 and 10.5 of this Regulation.

(b) The lack of publication of the information to the partners, members and public provided for in Article 10 of this Regulation.

(c) Overinvestment in the coefficients of Article 4, where the infringement is not to be qualified as minor.

d) The excess in the limitations imposed in Article 19 on obligations towards third parties.

e) Failure to comply with the deposit obligation set out in Article 18 of this Regulation.

f) The collection of management fees with non-compliance with the limits and conditions imposed in the Law, in this Regulation and in the Statutes or Regulations of the Institutions.

g) Failure to comply with the provisions of Article 4.1 (c).

(h) Failure to comply with the minimum investment ratios of Articles 17, 26, 37 and 49, where the lack of investment is transitory and does not exceed 20 per 100 of them. In order to assess the transitional nature of the non-compliance, the provisions of Article 65 (d) shall apply.

Failure to comply with the minimum investment ratio shall not be qualified as a breach resulting from the liquidation of disposal operations, provided that, within one month, the resources are reinvested and the 90 per 100 coefficient of the asset.

(i) Failure to comply with other obligations or prohibitions laid down in the Law, in the Company of Limited Companies, in this Regulation or in the Statute or Regulations of the Institutions which by its nature must not be qualified as a minor or very serious violation.

Art. 67. Very serious infringements.

These are very serious violations of actions or omissions, whatever their nature, which, in violation of the law, endanger or seriously damages the interests of the shareholders, members and third parties, or The purpose of the institutions is to be distorted. They have this consideration:

(a) The omission or falsehood in the accounts and in the information to be provided or published, in accordance with Articles 6 and 10.

b) Investment in any assets other than those legally authorised.

(c) Failure to comply with the accounting verification obligation set out in Article 60.

(d) Failure to comply with the prohibition on pignorination imposed in Article 18 and the conduct of stock market lending or option operations with infringement of the rules laid down in law.

e) Non-compliance with minimum investment ratios, when it should not be qualified as a serious infringement.

(f) The acquisition of own shares in the Capital Investment Company of Fixed Capital, except as provided for in Articles 75 and 76 of the Company Law.

g) The purchase and sale of the shares in the Companies of Capital Variable and the issuance and redemption of shares with non-compliance with the limits and conditions imposed by the Law, this Regulation and the Statutes and Regulations for the Management of Institutions.

h) The use of the denominations or abbreviations reserved by this Law to the Institutions of Collective Investment by Entities or persons not registered in the corresponding Records, and the realization by these of activities reserved for those institutions, without prejudice to both cases of the responsibilities of another order in which they could have incurred.

i) The resistance or refusal to the inspection provided for in Article 63.

j) The performance of operations with non-compliance with the limitations set out in Article 8. °

k) Failure to comply with the other obligations and prohibitions laid down in the Law, in the Law of Limited Companies, in this Regulation and in the Statutes or Regulations of the Institutions, when by its nature it must not qualify as a minor or severe violation.

Art. 68. Penalties.

The penalties will be:

a) For minor infractions, private admonition and fine of up to 10 per 100 of the infringement, if this is encrypted, or up to 500,000 pesetas, in another case.

b) For serious infractions, public admonition, temporary suspension of Administrators and fine up to 30 per 100 of the infringement, if this is encrypted, or up to 10,000,000 pesetas, in another case.

(c) For the very serious infringements, final suspension of Administrators, fine up to 50 per 100 of the infringement, if this is encrypted, or up to 25,000,000 pesetas, in another case, temporary or definitive exclusion of the Special registers and, where appropriate, income from the Treasury of the amount not prescribed for all the tax benefits that it would have enjoyed, with the corresponding interest on late payment. The rating of an infringement as very serious shall, regardless of any of the above, carry with it the public admonition of the Administrator or Administrators responsible for it.

The sanctions will be imposed on the persons responsible for the corresponding violations. Pecuniary penalties imposed jointly on the components of collegiate bodies shall be apportioned among those responsible; in the event of total or partial insolvency, the Company shall respond to the subsidiary.

For the imposition of the sanctions, the economic damage caused or that could have been caused to the shareholders and participants will be taken into account.

Art. 69. Competent bodies.

The jurisdiction for the instruction of the files and for the imposition of the corresponding penalties shall be governed by the following rules:

a) The National Securities Market Commission shall be competent for the instruction of the files.

(b) The imposition of penalties for serious and minor infringements shall be the responsibility of the National Securities Market Commission.

(c) The imposition of sanctions for very serious violations will be the responsibility of the Minister of Economy and Finance, on a proposal from the National Securities Market Commission, after the report of its Advisory Committee, except for the revocation of the authorization, which will be imposed by the Council of Ministers. When the infringing Entity is a Credit Entity, the prior report of the Bank of Spain will be required for the imposition of the corresponding penalty.

Art. 70. Sanctioning procedure.

1. The sanctioning procedure will be the one that results from the provisions of Articles 19 to 25 of the Law on Discipline and Intervention of the Credit Entities, with the references contained in the National Securities Market Commission. on the same to the Banco de España. It shall also apply to the exercise of the power of sanction attributed to the National Securities Market Commission as provided for in Articles 7. °, 14 and 15, as well as, in relation to the Collective Investment Institutions, which review the form of Companies of Companies, Management Societies of Collective Investment Institutions and Management Companies of Carteras, as provided for in Article 17 thereof.

2. In the event that the National Securities Market Commission appreciates, in the exercise of the competencies that correspond to the institutions of Collective Investment, that in the performance of the corresponding audits of accounts it will be he may have produced any of the offences provided for in Article 16 of Law 19/1988, shall immediately inform the Institute of Accounts and Audit of Accounts.

3. It will be applicable to the Companies of the Mobiliary Investment, to the Management Societies of the Mobiliary Investment Funds and to the Companies Gestoras de Carteras the provisions for the Entities of Credit in Title III of the Law of Discipline and Intervention by Credit Entities. The competence to agree on intervention and replacement measures shall be the responsibility of the National Securities Market Commission.

TITLE II

Non-financial Collective Investment Institutions

Art. 71. Definition.

Non-financial collective investment institutions are the persons or entities that publicly capture funds, property or rights under the conditions and with the limits set out in Article 1 (1) of this Regulation, for their investment, in the majority form, in assets other than those of a financial character.

Art. 72. Applicable legislation.

These investment institutions shall be governed by the provisions of Law 46/1984, in this Regulation and, failing that, by laws that are applicable to the legal form that they have adopted.

Art. 73. Constitution and registration.

These institutions shall be subject to the requirements of incorporation and registration laid down in Article 8. of Law 46/1984 and in Article 9. of this Regulation.

The name of "Institution of Non-Financial Collective Investment", as well as its acronym "IICNF", shall be proprietary to the institutions entered in the corresponding Register.

Art. 74. Legal status.

1. These Collective Investment Institutions must be domiciled in Spain and have their central administration in Spanish territory. They may take any legally recognised legal form.

2. The regulatory provisions of the Financial Collective Investment Institutions shall be applicable to them in an appropriate manner for the type, structure or legal form they have validly adopted. The Minister for Economic Affairs and Finance may adapt these rules to the nature of these institutions, in particular the principle of risk diversification, as set out in Articles 2.2 and 4.

3. They shall comply with the accounting audit in accordance with the terms set out in Articles 60 et seq. of this Regulation. The valuations of its assets will be carried out on the basis of objective criteria set by the Minister of Economy and Finance and, with its express rating, by the National Securities Market Commission, taking into account its different nature. Experts shall extend their audit to the valuation systems used, determining their origin under their responsibility.

TITLE III

Tax Regime for Companies and Investment Funds

Art. 75. Treatment in the Company Tax of the Mobiliary Investment Companies.

1. Mobiliaria Investment Companies, whose representative capital values are admitted to trading on the Stock Exchange, will have the following special tax regime on Corporate Tax:

a) The tax rate will be 13 per 100.

(b) They shall be entitled to the deduction laid down in Article 24 (2) of Law 61/1978 of 27 December. The quantification of the relevant deduction shall be in accordance with the provisions of the Company Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982.

(c) For the determination of increases and decreases in equity, arising from the disposal of transferable securities, the rules on the calculation of securities that are currently in force in the tax on securities shall apply. The Income of the Physical Persons.

The regime established in this paragraph will be provisionally applicable to the newly created Mobiliaria Investment Companies, in a condition that within two years, counted from their registration in the Register Administrative, admitted to trading on Stock Exchange the representative of its capital. If such a condition is not met, the taxation of the Company Tax of the following financial years shall be based on the general rate in force in each of them, with the application of the general rules of procedure and the provisions of the Law Tax General.

2. Mobiliaria Investment Companies that do not meet the requirements of the above paragraph will be taxed on the Company Tax in accordance with the general regime and, if applicable, will be subject to the tax transparency regime.

3. Dividends distributed by a Mobiliary Investment Company, whatever its tax regime in the Company Tax, will be subject to retention, except in the case of tax transparency, in which it will be applicable the provisions of Articles 374 and 385 of the Company Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982.

4. In the case of exclusion from trading on the Stock Exchange of the shares of the Mobiliary Investment Companies referred to in paragraph 1 of this Article, the loss of the tax regime shall be understood as referring to the date on which it was effectively produced such exclusion or waiver.

In that date the settlement of the income statement will be required.

5. The variable capital investment companies will quantify daily the provision for the Company Tax, in accordance with the provisions of Article 32 of this Regulation, and taking into account the rules of quantification. derived from the application of the relevant tax regime.

Any deviations at the close of the exercise between the provisioning and the resulting will be integrated into the entity's equity.

Art. 76. Indirect taxation of the Mobiliary Investment Companies.

1. The constitution, transformation into another type of Collective Investment Institution, capital increase and merger of Capital Investment Companies of Fixed Capital whose representative capital values are admitted to trading on the Stock Exchange Securities shall enjoy a reduction of 95 per 100 in the tax base of the Tax on Proprietary Transmissions and Documented Legal Acts.

2. The constitution, increase of capital, transformation in another type of collective institution and modification of the companies of the Mobiliary Investment of Capital Variable will enjoy exemption in the Tax on Transmissions Heritage and Legal Acts Documented.

3. The benefit shall be deemed to be granted on a provisional basis and shall be without effect after the period of two years from the registration of the Company in the Administrative Register without the representative capital values having been admitted to trading on the Stock Exchange. In this case, the income of the entire tax due shall be required for the transactions carried out with their corresponding interest on late payment.

Art. 77. Tax regime applicable to members of the Mobiliaria Investment Company.

1. The partners, whether natural or legal persons, of the Mobiliaria Investment Companies under the special tax arrangements referred to in Article 75 (1) shall be entitled to the deduction laid down in Article 29 of Law 44/1978 of 8 September 1978. on the basis of the dividends of companies received by the taxable person.

It shall not apply to the partners who are legal persons the deductions set out in Article 24 (1) and (2) of Law 61/1978 of 27 December.

2. In the case of Mobiliaria Investment Companies not covered by the special tax regime, the partners, whether natural or legal persons, shall apply the deductions for dividends specifically referred to in their respective personal taxes. for the cases of receipt of dividends or imputation of income from a transparent company.

Art. 78. Treatment in the Corporate Tax on Investment Funds.

1. The Investment Funds shall be taxed in accordance with the special tax regime provided for the Mobiliary Investment Companies, by accessing it by registration in the Special Administrative Register, without prejudice to the application of such the scheme, as soon as it originates, to acts prior to that registration.

2. The valuation of its assets, the distribution of results and the subscription and redemption of its units will require the quantification of the provision for the Company Tax on a day-to-day basis. Its scheme will be similar to that foreseen for the Capital Variable Investment Companies.

3. The results that you distribute will be subject to retention.

Art. 79. Indirect taxation of the Investment Funds.

Investment Funds under the special tax regime will be exempt from the Tax on Inheritance Transmissions and Legal Acts Documented with the same scope established for Investment Companies. Variable Capital Mobility.

Art. 80. Tax regime applicable to members of the Investment Funds.

1. Unit-holders, whether natural or legal persons, of Investment Funds under the special tax scheme, shall be entitled to the deduction for dividends laid down in Article 29 of Law No 44/1978 of 8 September 1978 on the basis of the results distributed by the Fund in which they participate.

It shall not apply to members who are legal persons the deductions set out in Article 24 (1) and (2) of Law 61/1978 of 27 December.

2. In the case of redemption of the shares, the taxable person shall obtain a qualified income as an increase or a loss of assets, which shall result from the difference between the price of the reimbursement and the price of the acquisition.

The property increases to be obtained shall be entitled to the deduction referred to in the preceding paragraph, and shall not be subject to withholding.

3. The transfer of shares, other than the repayment transaction, shall give rise to the application of the general tax arrangements established for increases and decreases in assets, without the right to deduct any such deduction. concept.

TITLE IV

Portfolio Managers

Art. 81. Registration and unique naming.

1. The activity of management of securities portfolios may be carried out by commercial companies incorporated in the effect and registered in the Register of Portfolio Managers of the National Securities Market Commission. No other Entity may normally carry out such activity, with the exceptions provided for in the Securities Market Act. The name "Society Gestora de Carteras", as well as its acronym " S. G. C. ", they shall be proprietary to the Entities that are registered in the Administrative Registry.

2. The registration in the Register of Management Companies of Carberas must be requested from the National Commission of the Market of Securities, accompanying the following documentation:

a) Draft Constitution, with the Social Statutes, if any.

b) Memory in which the structure of the organization is included, the relationship of personal and material means that the Entity will have for the development of its activity and the planned business plan. In particular, the Memory must describe the organization chart of the Entity, its functional areas and corresponding decision-making bodies, the staff expected to be attached to each area and the applicable training and experience requirements, the systems information, the organisation and computer equipment and the premises, offices and, where appropriate, branches and intended representations.

c) Partner relationship.

d) Relationship of Administrators and Directors-General or assimilated, with detailed information on the trajectory and professional activity of each of them.

In any case, it is appropriate to require the promoters of any data, reports or records to be considered appropriate to verify compliance with the legal or regulatory conditions and requirements.

3. Verified by the competent services of the National Securities Market Commission that the file is complete and that the legal or regulentarily established requirements are met, the registration of the Company in the Register of Companies Gestoras de Carteras, once accredited the registration of the corresponding writing in the Mercantile Register, if in accordance with the previous project.

Art. 82. Requirements of the Portfolio Management Societies.

1. The relationship of the partner of the Management Societies of Carteras will have to be known publicly. In the case of Companies Anonymous their shares shall be nominative.

2. The Management Companies of Carteras will submit to the National Securities Market Commission, prior to its application, the type-contract models with which they intend to carry out their activities. Under no circumstances shall mediation in the placement, acquisition or sale of securities be understood as part of such activity in favour of persons who are not engaged in the management of their portfolios with the Company.

3. Their Administrators must have a recognised commercial or professional good repute, as well as with appropriate knowledge and experience in the terms set out in Article 9 (2) (b) and (c) of this Regulation. In the event that the Company is governed by a Board of Directors, only adequate knowledge and experience shall be required of the majority of its members.

4. To ensure the good end of their activity, the Management Companies of Carberas must maintain own resources not less than the result of adding to 10,000,000 pesetas a 5 per 1,000 of the volume of the estate administered, in so far as this exceeds Of 10,000,000,000 pesetas, and 3 per 100 in relation to excess.

5. Persons entrusted with their management, management or representation shall not be able to perform similar functions in the issuing entities of securities which are part of the portfolios administered by the Managing Societies, except that This is the case for the holder of the administered securities. Such notification shall be made within a maximum period of 10 days from the date of such notification.

Art. 83. Accounting regime and reporting obligations.

1. The Portfolio Management Societies will have to publish an Annual Report with the following content:

-Balance and exercise results count.

-Exercise explanatory report.

Partner and Administrators relationship.

Fees to be charged for financial services that are generally offered to the public.

Volume of managed or advised heritage.

Number of clients.

2. The financial statements of the Entity shall be verified by the experts or companies of experts referred to in Article 62. In no case shall the verification of the administered assets be extended.

3. Administrators shall draw up the documents and financial statements provided for in paragraph 1 within three months of the end of the social year.

4. Without prejudice to the provisions of the commercial laws and the Audit of Accounts Law, and of what is available in the previous numbers, the Minister of Economy and Finance and, with his rating, the National Securities Market Commission, will be able to establish and modify the records to be carried by the Portfolio Management Companies, the accounting standards and the models to be held by their Balances and Results Accounts, with the frequency and detail available to them data shall be provided to the National Securities Market Commission or to be made public with a general character.

5. The system of information on significant participations provided for the partners of the Mobiliaria de Capital Fijo Investment Companies in Articles 5 and 6 of this Regulation shall apply to the members of the Companies ' Management Companies. Regulation, with the following peculiarities:

a) The significant percentages will be 20 per 100 and all their multiples up to 100 per 100.

(b) The first subparagraph of Article 6 (3) shall not apply.

Art. 84. Activity of the Portfolio Management Societies.

1. The Management Companies of Carberas will be subject to the development of their activity, to the conditions that apply to them in accordance with the Law of the Market of Securities and its provisions of development.

2. The Management Companies of Carteras may only acquire securities on their own account in the same terms as for the Securities Agencies are set out in Article 23 of Royal Decree 276/1989 of 22 March 1989. Under no circumstances may they buy or sell securities on their own account to persons whose portfolios they administer.

Art. 85. Regime of supervision, inspection and sanction.

Without prejudice to the infringements or penalties provided for in Article 36 (4) of Law 46/1984, the Management Companies of Carberas shall be subject to the supervision, inspection and sanction arrangements provided for in Title VIII. of the Law of the Market of Values in everything that relates to the development of its activities.

ADDITIONAL PROVISIONS

First.

1. The placing on the market in Spain of shares and units of collective investment institutions domiciled in other Member States of the European Economic Community and subject to the arrangements provided for in the Directives of the Community On 20 December 1985 (85/611/EEC) and 22 March 1988 (88/220/EEC), it shall be free, subject to the following rules:

1. The institution whose shares or shares are intended to be marketed shall comply with the laws, regulations and administrative provisions in force in Spain which do not fall within the scope of those provisions. Directives.

2. The advertising in Spain of the institution will have to respect the provisions that regulate this matter in Spanish law.

3. The institution shall adopt the measures which, in the opinion of the National Securities Market Commission, are necessary in order to facilitate the payments to the shareholders and members, the acquisition by the Institution of its shares or the repayment of the shares, the dissemination of the information to be supplied to shareholders and members resident in Spain and, in general, the exercise of their rights.

4. The placing on the market in Spanish territory of the shares or shares of the institution shall be made through the intermediaries empowered and under the conditions laid down in the Securities Market Act. The rules in force for the control of changes shall also apply.

5. The Institution shall submit to the National Securities Market Commission the following documentation:

(a) Prior communication of the project to market its shares or units in Spanish territory, to which it must be attached a copy of the communication made to the supervisory authority of origin.

(b) A certificate from the authorities of the Member State of origin that the institution meets the conditions laid down in the Directives referred to in this additional provision.

(c) a Regulation of the Investment Company's Investment Fund or Constitution.

d) Informational brochure.

e) Last annual report and last semi-annual report.

(f) Memory on the intended marketing arrangements in Spanish territory.

The documents referred to in points (b), (c) and (d) shall be submitted by the competent authority of the state of origin. All documents must be accompanied by their translation into Spanish.

2. The National Securities Market Commission will verify the submitted documentation and incorporate it into its Records. In cases where it considers that the intended marketing arrangements do not comply with what is required under Directive 85 /611/EEC, it shall issue a reasoned decision expressing the reasons for such a decision. insufficiency.

If the National Securities Market Commission does not adopt a decision within two months of the submission of the documentation set out in point 5. of the preceding number, the institution may initiate, through the authorised national intermediary, the placing on the market in the terms described in the documentation provided.

Second.

1. Collective investment institutions domiciled outside the territory of the European Economic Community or not subject to the Directives referred to in the preceding provision may be placed on the market in Spain if they prove to be National Securities Market Commission compliance with the following extremes:

1. That they are subject in their State of origin to a specific regulation that protects the interests of shareholders or members at a level that is not lower than that of Spanish legislation.

2. That the authority of the State of origin to which the institution's control and inspection is entrusted provides a favourable report on the development of the institution's activities.

Accredited such extremes, the Foreign Institution shall be subject to the requirements laid down in Article 61 of Law 24/1988 of July 28, of the Securities Market, and to the precepts that are dictated in its development.

All documents referred to in this issue must be accompanied by their translation into Spanish.

2. In order to enable the institution to market its shares or shares in Spain, it must be expressly authorized for this purpose by the National Securities Market Commission and recorded in the Register which is believed to be the Commission. The number with which the institution is registered in the Commission shall be reflected in any document and publicity of the institution which is broadcast in Spain.

Third.

The marketing of shares or units of Spanish collective investment institutions in the field of the European Economic Community shall be subject to, without prejudice to the provisions of the changes, to the following requirements:

1. The Spanish institution intending to market its shares or units in one of the Member States of the Community must inform the National Securities Market Commission of the marketing project.

2. In addition, the said institutions shall request the National Securities Market Commission to issue a certificate of the characteristics referred to in point (b) of Rule 5 (1) of the additional provision. first.

Fourth.

Portfolio Management Companies may be transformed into a Company or Securities Agency by meeting the following special requirements:

1. They satisfy all the conditions laid down for the authorization and registration of the Companies or the Agencies of Securities by Articles 1. °, 2. °, 3. ° and 4. ° of Royal Decree 276/1989. However, they are exempted from the fulfilment of the requirements relating to the simultaneous foundation and to the cash disbursement in respect of the part of the capital paid up at the time of the application.

2. That the sum of the value of his net worth and the contributions provided for in cash is higher than the minimum amount of capital, respectively, established for the Companies and Securities Agencies in Article 2 (e) of the said Royal Decree 276/1989. The verification of this second requirement will require the presentation of a legally audited and closed balance not before the last day of the quarter preceding the time of filing.

Fifth.

As long as the criteria referred to in Article 49.4 of this Regulation are not generally established, the National Securities Market Commission may establish that a value or category of securities is high. liquidity for the purposes referred to in Article 49, either by means of the relevant reference in the verification and registration procedure for the issue of securities, already by resolution adopted for that purpose.

TRANSIENT PROVISIONS

First.

The Collective Investment Institutions which, as of 1 January 1989, exceed the investment limits laid down in Article 4. of this Regulation, must be adapted to those limits as at 31 December 1991, so that do not exceed the number of investments per 100 which are specified below, with reference to the assumptions referred to in Article 4 (

).

Suppositions	1-10-1989	31-12-1990	31-12-1991
1, a) first indent	5	5
Number 1, a) second indent			0
	Number 1, b)	5	5	5
1, c)	25	20	15
Number 2, a)	5	5	5
Number 2, b)	25	20	15
Number 3	35	35	35

Second.

1. The duties of information and publicity on significant holdings provided for in Articles 5 and 6 of the Regulation shall be construed as referring to acquisitions, repayments and transfers taking place as from 31 December 1991, without prejudice to the general rules applicable to Mobiliary Investment Companies whose shares are admitted to trading.

2. As long as the implementing rules referred to in Article 6 (5) of this Regulation are not dictated, the manner in which the relevant communications and other extremes are to be carried out shall be in accordance with the arrangements laid down for compliance. of the obligations referred to in Article 53 of the Securities Market Act.

3. However, natural or legal persons who, at the entry into force of this Regulation, are holders of percentages of participation in collective investment institutions equal to or greater than those expressed in Article 5 (2). they must bring to the attention of the National Securities Market Commission this end, within one month of the entry into force of this Regulation, by specifying the institutions concerned and the exact amount of their participation. in the same.

Third.

The Mobiliary Investment Companies referred to in Article 12 of the Regulation which, at the date of entry into force of the Regulation, have a social capital lower than that laid down for the new institutions at least This Regulation should be adapted as provided for in this Regulation by 31 December 1991 at the latest. This deadline will be effective unless changes in the shareholding or participation, involving the entry of new dominant members or control groups, in the sense of the Regulation occur after the entry into force of the Regulation. Article 4. of Law 24/1988 of 28 July 1988 of the Securities Market, in which case the immediate lifting of the minimum level of capital or equity shall be compulsory in accordance with the provisions of Article 12 of this Regulation.

Fourth.

The Collective Investment Institutions entered in the corresponding Records of the National Securities Market Commission at the date of entry into force of this Regulation will have a deadline of 31 December December 1991 to adapt to the requirements of this legislation in respect of obligations towards third parties, Article 20, investment of its assets or assets, Articles 17, 26, 37 and 49.

Fifth.

The Management Companies of Collective Investment Institutions which, at the entry into force of this Regulation, have been granted an endorsement by the Deposit Entity for the purposes of the provisions of Article 53.1 (d), paragraph 2. The former Regulation will have a deadline of 31 December 1991 to adapt to the provisions of this Royal Decree.

Sixth.

The Management Companies and the Depository Entities of Collective Investment Institutions entered in the corresponding Records of the National Securities Market Commission to the date of entry into force of this Regulation. they shall have a deadline of 31 December 1991 to accommodate their situation to the provisions of Article 55 (2) and (3) of that Regulation.

Seventh.

The Management Companies of Carberas registered in the corresponding Register of the National Securities Market Commission to the date of entry into force of this Regulation will have a deadline of December 31, 1991 to adapt to the provisions of Title IV of the Regulation.

Eighth.

Before the 31st of December 1991, the Collective Investment Institutions, their Management Societies and the Companies of Carberas must adapt their Statutes or Management Regulations to the provisions of the present Royal Decree.

Given in Madrid to November 2, 1990.

JOHN CARLOS R.

The Minister of Economy and Finance,

CARLOS SOLCHAGA CATALAN