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Law 46 / 1984, Of 26 Of December, Regulatory Of The Institutions Of Investment Group.

Original Language Title: Ley 46/1984, de 26 de diciembre, reguladora de las Instituciones de Inversión Colectiva.

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TEXT

JOHN CARLOS I,

KING OF SPAIN

To all who present it and understand,

Sabed: That the General Courts have approved and I come to sanction the following Law:

The fourth transitional provision of Law 61/1978 of 27 December of the Corporation Tax forced the government to submit to the General Courts a draft Law on Collective Investment Institutions. This obligation, imposed in a tax rule, has its basis in considerations of purely fiscal order and strictly financial order.

In fact, from the fiscal point of view, the new regulation of the Income Tax of the Physical Persons and of the Societies has modified the traditional tax regime of the Companies and Funds of Investment Mobiliaria, raising the need for its adaptation to the principles that inspire fiscal reform.

On the other hand, from the financial point of view, it is noteworthy that the Spanish legislation currently in force in this area does not meet the requirements of a modern financial system. The rules relating to the Mobiliary Investment Funds and fixed capital investment companies do not permit a sufficiently free determination of the institutions, their action being coarted by a rigid regulation in respect of (i) the Commission's position on the implementation of the common position of the European Parliament and of the Council. Similarly, the variable capital investment companies, which are provided for in Decree-Law 7/1964 of 30 April, have not been the subject of development because the principles contained in Article 6 thereof. do not agree to a normal development of their activity and peculiarities.

The reform of the financial system has pursued and seeks to ensure the free movement of the institutions on the market, which is compatible with the security of investors, while encouraging and facilitating the relations of complementarity between the various markets and financial assets. Therefore, the activity of the Collective Investment Institutions is not limited to traditional transferable securities; it is extended to the whole range of financial assets that are traded on customary, official or recognised markets. establishing the appropriate rules for the institutions to specialise or to adopt objectives and guidelines for action compatible with their assessments in order to achieve profitability and risk.

At the same time, when the institutions are enlarged with variable capital companies, the whole range of liquidity and management possibilities is covered by investors. Own management, through the own organs in the Societies. Third party management, based on trust in funds. Liquidity at a fixed price, from equity, in funds; liquidity at variable price, according to the market in the variable capital companies, and in both cases without the assets being directly affected by liquidity.

On the other hand, the principle of investor security requires the establishment of a basic regulation that makes it possible to regulate the collective investment institutions that are not classified in a specific formula; hence, provides for its submission to the general rules on the institutions governed by the law.

It cannot be ignored, however, that the existence of an important legal body drawn up in the laws of the European countries and the European Economic Community is then taken into account. Such a Community law constitutes an element of reflection for the development of the own rules governing the regulation of collective investment institutions.

PRELIMINARY TITLE

Item one.-Scope.

1. For the purposes of this Law, they shall be considered as Collective Investment Institutions, regulated in their articles and those that, whatever their object, 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 company contract.

In no case shall the consideration of Collective Investment Institutions be the Banks, Savings Banks, Credit Unions, Financing Entities, Insurance and other Financial Institutions subject to a regulation special.

2. The Collective Investment Institutions may be of two kinds: of a financial character, which are characterized in that they have as main activity the investment or management of financial assets, such as money, transferable securities, notes, letters (a) exchange, certificates of deposit and any other commercial securities, and of non-financial character, which operate primarily on assets of another nature.

TITLE FIRST

Financial Collective Investment Institutions

CHAPTER FIRST

Common Provisions

Article two.-Types of Financial Collective Investment Institutions.

1. The following Collective Investment Institutions are of financial character:

(a) The Mobiliary Investment Companies.

b) The Mobilia Investment Funds and the Money Market Asset Investment Funds.

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

2. The Companies of Investment of fixed or variable capital, 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 performance, without 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 by a certificate of participation administered by a Gestora 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.

Investment Funds in money market assets are assets belonging to a plurality of investors, managed by a Management Company to whom the powers of the domain are attributed without owning the money market. 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 the risks and types of performance.

Article three.-Home.

The Collective Investment Institutions regulated in this Law, as well as its Managers and Depositary, must be domiciled in Spanish territory.

Article four.-General rules on investments.

1. Collective Investment Institutions may not have more than 10 per 100 of their assets in shares, shares or securities in general, issued by other collective investment institutions. However, they may not be part of the equity of the Mobiliary Investment and Investment Funds in money market assets certificates for participation in other Funds.

2. Investment in securities issued or endorsed by a single entity may not exceed, at its nominal value, 5 per 100 corresponding to the securities in circulation of that institution, except in exceptional cases which are established in a regulated (a) attention to circumstances of interest to the national economy or in circumstances beyond the will of the institution and without it being able to exceed the limit of 10 per 100.

3. The effective amount of such investment shall also not exceed 5 per 100 of the institution's assets, unless its Statute or Regulations expressly permit it and in them it is specified that it may not exceed 10 per 100 of the that asset. In any event, the total amount of investments in the issuers in which the 5 per 100 is exceeded shall not exceed 40 per 100 of the institution's assets.

4. The limitations set out in numbers 2 and 3 of this Article shall not apply to securities issued or endorsed by the State and the Autonomous Communities or, where appropriate, foreign public entities and international bodies which are determine regulentarily.

5. The assets of the Collective Investment Institutions shall not be more than 25 per 100 of securities issued by companies belonging to the same group.

The Statutes or Regulations of each institution may establish, as a ceiling, a higher percentage by identifying expressly and precisely to the parent, dominant or individualizing society of the group. In no case may limits be established or allowed above 25 per 100 with a generic or undetermined character

6. For the purposes of this Law, the same group shall be considered as belonging to a group of companies which constitute a unit of decision because any one of them directly or indirectly controls the other. There is control of a company, dominated, by another, dominant, when one of the following circumstances is present:

(a) The dominant holds the majority of votes or the capital of the dominated.

(b) The parent, by virtue of express agreements with other shareholders or cooperative partners of the dominated, or with its own dominated, or by virtue of its Statute, has in relation to the governing bodies of the entity dominated, equal rights to those that it would have had the majority of the voting rights of the shareholders or members of the dominated.

(c) The dominant position in the capital of the dominated is a share of not less than the percentage that the government regulates, and the government is subject to the sole direction of the government. It is presumed, unless proof to the contrary, that there is a single address when at least half of the directors of the dominated are members or senior managers of the dominant or other dominated by the latter.

The rights of the parent shall be added to those held by other dominated entities or persons acting on behalf of the dominant entity or other dominated entities.

Article 5.-Advertising of significant holdings.

The participation of any partner or participating in a percentage equal to or greater than 25 per 100 of the paid-up share capital or, where appropriate, the equity of a Collective Investment Institution shall be made public in the terms referred to in Article 8. of this Law. The participation that in the Gestora Society holds any person or group, in percentage greater than 25 per 100 of the paid share capital, shall be made public in the form provided for in the preceding paragraph.

For the computation of the shares, the members of the Board of Directors and Directors of the Companies shall be taken into account, either direct or indirect, in the same terms as those established for the securities information.

The concealment of the existence of participation situations in the significant percentages in the fixed capital companies will determine that the responsible partner will be obliged to accept the offer of sale that will any other partner in respect of their shares, for the liquidative value of the shares at the beginning of that situation. This right shall expire three months after the publication in the form set out above, of the situation of significant participation.

Article six.-Operations with Administrators or Managers.

Persons or Entities entrusted with the management and administration of Collective Investment Institutions shall not be able to buy or sell for themselves, either directly or by person in the interest of their financial investments or no other element of its assets.

However, the Administrators or Directors of the Mobiliary Investment Companies and, where appropriate, their Managers and the management companies of funds may acquire for themselves the financial assets contracted in the markets to in the following Article, provided that the price is the official price or, where applicable, the most advantageous price for the institution.

The same rules apply to the Administrators or Directors of the Depositaries.

In the Institutions that are Societies, the General Board may authorize specific operations of those contained in the first paragraph.

Article seven.-General condition of transactions on securities traded and other financial assets.

In the case of securities or other financial assets admitted to official listing or with an organised market for regular operation open to the public or, at least, to financial institutions, the Investment Institutions Collectively, they will have to carry out their transactions in them, and will act in such a way as to effectively affect prices with the concurrence of plural offers and demands, unless the transactions are carried out under more favourable conditions for the Institutions.

In any case, you will be able to attend the Public Debt auctions with requests of any kind.

Article eight.-Registration, authorization, information and exclusive name.

1. Those who intend to constitute a collective investment institution shall obtain from the Ministry of Economy and Finance prior authorization of the draft Statute or Regulations, in respect of matters specifically regulated in this Law. The Administration must, within six months, resolve by means of a reasoned decision, in the case that the draft submitted has been approved. If the decision of the Administration is denied the authorization requested, it must express the defects or omissions which, in its opinion, must be remedied in the draft Statute or Regulation.

2. In the Register of Trade, they shall be entered in accordance with the Trade Code, the articles of incorporation of commercial companies that have the status of an Institution of Collective Investment or perform functions of Managers or Depositary. the scriptures for the establishment of the Funds.

A registration sheet will be opened for each Fund. It shall be the first seat corresponding to the writing of the constitution and shall contain the extremes to be expressed. The laws and regulations governing the Commercial Registry and the principles that inspire the registration of commercial companies will apply.

3. Once entered in the Commercial Register, the Collective Investment Institutions, as well as the Managers and Depositary, will acquire their character as such for the legitimate exercise of the activities covered by this Law by means of the authorization that To this end, the Ministry of Economy and Finance will grant the Ministry of Finance and the Ministry of Finance and the Administrative Records of the Collective Investment Institutions and their Managers and Depositary. The registration will be carried out in accordance with the provisions of the Regulation.

In general, the modifications to the constitutive contract, the Statutes or the Regulation of the Collective Investment Institution will be subject to the provisions of this number and the previous two. However, the change of registered office and the increase of social capital will not require administrative authorization, but only must be notified to the Ministry of Economy and Finance for their constancy in the administrative registers. 4. Collective Investment Institutions shall publish in the manner that is determined, for dissemination among the partners, members and the general public, a prospectus, an annual report and four quarterly reports in order to all circumstances under which consideration may influence the assessment of the value of the institution's assets, financial situation, results and prospects, as well as its legal, financial and legal regularity, are known to be known. economic.

The prospectus shall contain information on the nature and characteristics of the shares/units, market conditions, issues and repayments; rules on the determination and distribution of results and other related the structure of the institution, its activity and relationship with its partners or members. The prospectus shall be updated as necessary for its information to be updated and shall include the Statute or Regulation of the Institution, unless it is distributed as an annex.

The annual report shall contain at least the minimum specifications corresponding to those of the companies or entities whose securities are admitted to official listing, adapting their content to the Institutions.

Quarterly reports shall include the information necessary to update the content of the annual report, and in particular the information relating to the institution's assets, its financing, revenue and costs for the period.

5. The institutions shall also provide the information required by the Administration in order to facilitate their control in accordance with Article 31 of this Law.

6. In any event, the information referred to in the previous numbers 4 and 5, as well as that of the facts relevant to the institution, to be published immediately, shall be verified by the experts in the form set out in Article 31 of the This Law.

For your knowledge and effects, the information referred to above will be deposited with prior character in the Ministry of Economy and Finance.

7. The denominations , , , , , , and and , as well as their respective initials, will be privative of the institutions registered in the corresponding Registers.

CHAPTER II

Companies and funds for investment and investment in money market assets

SECTION 1. GENERAL PROVISIONS

Article nine.-Capital or equity and number of shareholders or members.

1. The social capital of the investment companies would be represented in shares that will have equal face value and will confer the same rights.

Equity shares in investment funds shall have equal characteristics and may be represented in nominative certificates with no nominal value or otherwise in the form of the holder's ownership in the form that Regulation shall be determined.

The minimum paid-up capital of the mobiliaria investment companies will be 200 million pesetas and the equity of the Funds will be at least 500 million pesetas in the Mobiliary Investment Funds and 1,500 million This is a very small and very small amount of money.

Where the securities of these institutions have already been admitted to official listing, the minimum capital and assets fixed shall not be altered, even if at a later date other than the securities of the the institutions concerned may be admitted to official stock exchange listing.

Contributions for the formation of capital or equity shall be made exclusively in money, securities admitted to official listing or in other financial assets eligible to cover their investment and liquidity.

2. The number of shareholders of the Mobiliaria Investment Company may not be lower than that required for the admission and permanence of the shares in official listing. The same minimum limit shall apply to members of the Investment Funds.

3. Where, by market circumstances or by the obligation to comply with this Law or the requirements of the Law on the Legal Regime of Companies, the assets or capital of the collective investment institutions or the number of their Shareholders or members shall be subject to the minima laid down in this Article, 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 assets and the number of shareholders or members, either to decide their dissolution or to agree to the exclusion of the corresponding administrative register, with the consequent changes in the regulations and their activity. After that period, the registration in the Special Registers of the Collective Investment Institutions shall be cancelled, if such registration does not exist, unless it has been consolidated by a wealth of assets or personnel.

Article 10.-Minimum investment and liquidity. Deposit and pignoration.

1. These Collective Investment Institutions shall have at least 90 per 100 of their invested assets, in the proportions to be established on a regulated basis, in transferable securities admitted to official stock exchange listing and other financial assets contracted on an officially recognised, organised market, or which, due to its short-term maturity and the guarantees of its performance, can be assimilated to cash. Investment in transferable securities and other foreign financial assets shall be governed by the special rules and shall be computed within the indicated percentage.

2. The Regulation of this Law will establish in relation to the companies of variable capital, Funds of Investment Mobilia and Funds of Investment in assets of the Monetary Market, the coefficients of liquidity that they must maintain, as well as their coverage. In any event, the asset not subject to the coefficient established in this Law will be invested in goods, securities or rights appropriate to the fulfillment of the purpose of these institutions, which in the companies of the Mobiliaria Investment of fixed capital may to understand unlisted securities, if it is included in its Statute.

3. Securities or other assets that are part of the portfolio may not be pledged or guaranteed by any class, and shall be deposited in the custody of the depositaries governed by this Law. However, they may be the subject of options or stock-lending operations with the securities to be established in a regulated manner.

Article 11.-Obligations against third parties. 1. Obligations vis-à-vis third parties may not exceed 20 per 100 of the asset. The debits incurred in the purchase of financial assets in the settlement period of the transaction shall not be taken into account for these purposes.

By way of derogation from the preceding subparagraph, the institutions of capital or variable equity shall not be in debt except in order to resolve transitional cash difficulties and for a period not exceeding that laid down in the (a) Regulation (EC) No 87/2014 (OJ L L, 8.8.2015, as

2. Collective Investment institutions shall not be allowed to accept deposits or current securities or cash.

SECTION 2. COMPANIES WITH FIXED CAPITAL INVESTMENT

Article twelve.-General principles.

1. The name of the Company must necessarily include the indication of the Mobiliary Investment Company, its acronym being .

2. The Mobiliaria de Inversión mobiliaria de capital fixed will be governed by the provisions of this Law, and as not provided for in it, by the Law of Legal Regime of the Company.

3. The remuneration or benefits of the founders and promoters, as provided for in Articles 12 and 30 of the Law on the Legal Regime of Companies, are prohibited.

4. The management of the assets shall be carried out by the organs of the Company. If the Social Statutes contain a forecast for the effect, the General Board may agree that the management of the assets of the Company is entrusted to a third party, in whom the quality of the Manager complies with the provisions of this Law. This agreement must be entered in the Register and in the corresponding Special Register.

Article 13.-Management and Audit Control Committee.

1. The annual accounts and the management report of the Mobiliaria Investment Companies shall be controlled by independent natural or legal persons, who have the appropriate administrative capacity as auditors, in accordance with the established in Article 31 of this Law.

2. The Statutes of the Company shall provide for the existence, rules of incorporation and operation of a Management and Audit Control Commission, consisting of a number of shareholders not present in the Board of Directors, elected by the Board. In order to ensure the presence of minority interests in the form established by the Regulation of this Law, it will be ensured. Its main functions shall be to ensure the knowledge of the economic and financial situation by all shareholders and the appointment, by a majority, of the auditors who are to intervene in the verification of the accounts, having the power of require the Board of Directors to convene the General Meeting in accordance with the terms of Article 56 of the Law on the Legal Regime of Companies, either by a majority or by unanimity.

The minimum general rules regarding their constitution, functioning and functions will be determined.

3. Articles 108, 109 and 110 of the Law on the Legal Regime of Companies Anonymous shall not apply to these Societies.

Article fourteen.-Balance, results and distribution.

1. In the first three months of each financial year, the Company's Administrators are required to make the balance sheet with the profit and loss account, the results distribution proposal and the management report. The social exercise ends on December 31 every year.

2. The determination of the results shall be done in the manner provided for in the Law of Legal Regime of the Company of Anonymous and in the Statutes of the Company, in so far as they do not object to this Law. Where the same comes from the sale of the financial assets referred to in Article 7. of this Law, the value or cost price of the sold can be calculated according to the systems of weighted average cost or of identification of the items remaining the criterion of imputation chosen over at least three complete exercises.

Financial assets shall be on the balance sheet at a price not exceeding the average price of the last month of the financial year, and those which may be treated as cash in accordance with Article 10, at a price not exceeding their value according to the criteria to be laid down in regulation.

3. The results of the financial year determined in accordance with the preceding numbers shall be distributed in accordance with the Law on the Legal Regime of the Company and the Statute of the Companies, but in no way shall they be to distribute the unrealised gains. For these purposes, the delivery of shares released from the same office, without prejudice to the corresponding tax regime, does not result in the distribution of results.

SECTION 3. COMPANIES FOR CAPITAL INVESTMENT

Article fifteen.-Basic characteristics.

1. Capital of variable capital investment companies 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 by the the sale or acquisition by the Company of its own shares in the terms established in the following article without the need for agreement of the General Board.

2. These companies will have to take an anonymous form and will be governed by the provisions of this section, applying the rules regarding the fixed capital investment companies and, failing that, the Law of Legal status of the company.

3. In the writing of the constitution of the Company and in its Statutes, in addition to the requirements laid down in Article 11 of the Law on the Legal Regime of the Anonymous Societies and those resulting from this Law, they shall be expressed:

(a) The name of the Company, in which the indication of the variable capital investment company of variable capital must necessarily be included.

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

(c) The initial capital, which may not be less than the minimum laid down in Article 9. of this Law.

d) The maximum statutory capital, expressing the number of shares in which it is divided and the nominal value of the shares.

e) The commitment to meet the requirements required for the admission and permanence of its shares in the official listing.

f) The designation of an authorized Depositary.

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 only function as variable capital companies as long as they remain registered in the relevant administrative register and their shares are admitted with full effect on the official listing.

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 Article 16; portfolio shares shall be held by the Depositary.

7. The title of the action shall necessarily express, in addition to the requirements of Article 43 of the Law on the Legal Regime of Companies, 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. Similar securities or securities may not be issued except as provided for in Article 11.1 of this Act. In no case can they be convertible into shares.

10. The reduction of the initial capital and the increase or decrease of the maximum statutory requirement shall be agreed by the General Board, with the requirements established by the Law of Legal Regime of the Company.

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

Article sixteen.-Operating requirements.

1. The Company will purchase or sell its own shares in cash transactions, without settlement deferral, on the Stock Exchanges or Bolsines, or on the normal hiring, either through Procurement or Auction stock. Both operational modalities shall take place provided that the price of the acquisition or sale of their shares is respectively lower or higher than their determined theoretical value as provided for in this Article.

Where the difference between that theoretical value and the official listing is greater than 5 per 100 of that, the Company must necessarily intervene by buying or selling its shares according to the price of the shares higher than its theoretical price on balance sheet. In order to ensure the effectiveness of this essential feature of its operation, the Government may establish, according to the stock market, the obligation to intervene on the market with differences other than that of 5 per 100.

For the purposes of this number, the Company may put in circulation shares at a price below its nominal value and shall not be applicable to Article 47 of the Law on the Legal Regime of the Company.

2. The theoretical value of the stock is the one that results from dividing the value of the equity of the Company by the number of shares outstanding. For these purposes the Company's financial assets shall be valued at the stock price of the previous day or its equivalent. The criteria for the valuation of the non-contracted financial assets on the markets referred to in Article 7, as well as the criteria for the valuation of the valuations of the rest of the assets, shall be determined.

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 number, 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 equity has decreased below two thirds of the subscribed capital figure, always that a year has elapsed without any recovery of the assets. In the same proportion, the nominal value of the portfolio shares will be reduced.

5. If, for any reason, the shares excluded from listing on the Stock Exchange, either at the Company's will or the decision of a Board of Trade Unions, the Company will guarantee the shareholder who intends to perform its shares the return of the value This is the case for the last month of trading through the mechanism of a public offering addressed to all shareholders.

SECTION 4. INVESTMENT FUNDS MOBILIARIA

Article seventeen.-Constitution, guarantee and liability.

1. The Fund shall be constituted by the effective pooling of the assets which are part of its assets.

The contract must be formalized in public deed where it will necessarily be expressed:

(a) The name of the Fund, which must be followed in any case of the expression "MobileInvestment Fund", in short.

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

(c) The equity of the Fund at the time of its establishment.

d) The name and address of the Gestora and Depositary Society.

e) The Fund's Management Regulation with the minimum specifications to be regulated, including necessarily:

-The duration of the Fund, which may be unlimited.

-The investment policy.

-Characteristics of the representative certificates of the shares and the procedure for issue and reimbursement.

-Rules for the management, administration and representation of the Fund.

-Determination of results and their distribution.

-Requirements for the modification of the contract and the management regulation, replacement of the Management and Depositary Society and the conversion of the Fund into Society.

-Rules for the dissolution and liquidation of the Fund.

2. The deed of incorporation of the Fund shall be granted by the Management Society and by the Depositary and shall be entered in the Commercial Register and in the Special Administrative Register in the manner established in Article 8 of this Law.

3. The Management Company and the Depositary may be authorized by the Ministry of Economy and Finance, prior to the establishment of the Fund and in the manner in which it is regulated, to carry out a public subscription of shares.

Public procurement of resources will be made with the necessary requirements to ensure the interests of the subscribers, future members, and the amount of the special account subscriptions should be deposited in the name of the provided, opened in the Depository Entity.

Elapsed one year from the authorization without the Fund being constituted, the holders of the existing deposits with their yields will be returned to their holders.

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 Articles 28 and 29 of the Law on the Legal Regime of the Public Limited Companies.

4. The Fund's creditors may not make their claims on the equity of the unit-holders, the liability of which is limited to their contributions.

The equity of the Fund shall not be liable for the debts of unit-holders, Managers or Depositary.

Article eighteen.-Investment in equity.

The Mobiliary Investment Funds will have at least 80 per 100 of their assets in transferable securities of fixed income or variable listed on the Stock Exchange and in securities issued or endorsed by the State and the Autonomous Communities, without prejudice to the compliance with the coefficients set out in Article 10.1 of this Law.

The rest of your resources will be invested in financial and cash assets in accordance with the provisions of Article 10 of this Law.

Article nineteen.-Administration.

The management and administration of the Mobiliary Investment Funds will be governed by the provisions of the Management Regulations of each Fund, and it will necessarily be the responsibility of the management companies that are regulated in this Law.

In no case may the acts and contracts performed by the managing entity 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 Law.

The custody of its securities, financial assets and cash shall be entrusted to the Depositary as referred to in Article 28 of this Law.

Article 20.-Issue and redemption of shares.

1. The equity of the Fund shall be divided into shares, which shall have the same characteristics, and may be represented in nominative certificates without a nominal value or otherwise in the form of a form of ownership of the holder in the form which is determined to be determined. These shares confer a right of ownership on the Fund to its members, in union with the other members.

2. The value of each participation shall be the value of dividing the assets of the Fund, measured in the form provided for in Article 21, by the number of participants in circulation.

3. The number of shares shall not be limited, and shall increase or decrease as the Fund increases or decreases by virtue of the subscription or redemption of the units.

4. The Gestora shall be obliged to issue and reimburse shares in the Fund at the request of any interested party, with the limits and in the form and conditions to be established.

The Ministry of Economy and Finance may temporarily suspend, even at the request of the managing company, the subscription or redemption of shares where the determination of its price is not possible or another cause is present. of force majeure.

5. The subscription and redemption of the shares shall be made for their price, which shall be fixed daily by subtraction and in addition to the value determined in accordance with the number 2 of this Article, of the discounts regulated in favour of the Fund and The Management Rules of the Fund shall be determined by the Management Rules of the Fund.

6. The shares in the Fund shall be represented by certificates, which may be issued individually or by public tender, and shall be acquired or reimbursed on behalf of the Fund by its own assets.

7. The intervention of the Collegiate Mediator Agent or Notary in the subscription and redemption of the units will not be required.

Article twenty-one.-Valuation of heritage, distribution 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. The assets shall be valued at the changes on the last stock day prior to that referred to in the valuation or the equivalent for other financial assets. However, for the purposes of determining the price of the shares, they may be valued at the same day or next stock exchange or equivalent if provided for in the Fund Management Regulation.

2. The results shall be the result of deducting from all the returns obtained by the Fund the Management Committee and the other expenditure provided for in the Rules of Procedure of each Fund, including the costs of custody and audit. For these purposes, the value or cost price of the assets sold may be calculated on the basis of the weighted average cost systems or the identification of the items, with the allocation criterion chosen over at least three of the following: full exercises.

The periods of their determination, as well as their distribution, will be in accordance with the provisions of the Fund Management Regulation in so far as they do not object to the rules that are dictated in the development of this Law.

3. Unrealised gains may not be distributed in any form. For these purposes it is not a distribution of results for free delivery of shares in the Fund.

Article 22.-Commissions.

The Management Companies may receive from the Funds a Management Committee as remuneration for their services. This Commission shall be set up in the Management Regulation for each Fund on the basis of the assets ' assets or both variables and shall not exceed the limits which, as a guarantee of the interests of the unit-holders, the Regulation of this Law, which will also fix the overall maximum amount of expenses and commissions that the Managers and Depositary can perceive in the operations of subscription, reimbursement and deposit of securities.

Article twenty-three.-Dissolution and liquidation.

The Fund shall be dissolved, opening the settlement period, by the expiration of the term indicated in the contract, by agreement of the Management Company and the Depositary when the Fund was constituted for an indefinite period of time, such as a consequence of the failure to comply with the provisions of this Law when it is disposed of, and the causes to be established in its Management Regulation.

The liquidation of the Fund shall be carried out by the Gestora Company with the contest of the Depositary and prior to the fulfilment of the requirements of publicity and guarantees that the Regulation of this Law establishes.

SECTION 5. INVESTMENT FUNDS IN MONEY MARKET ASSETS

Article 24.-Applicable legislation and exclusive denomination.

1. The Investment Funds in money 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 in any case of the expression "Investment Fund in Assets of the Monetary Market", with its acronym .

Article 25.-Investment in equity.

The equity of these Funds will be invested in fixed income securities with a qualified contribution on the Official Trade Exchanges, in the State Debt, the Treasury and the Autonomous Communities, assets issued by the Bank of Spain and the other financial assets which, due to their short-term maturity and the guarantees of their performance, may be treated as cash.

They may not be part of the equity of these Funds shares, convertible bonds or which entitle them to participate in capital increases, or assets with a time-limit of repayment or repayment higher than that which Regulation is established.

Article twenty-six.-Valuation of the patrimony 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. The assets shall be estimated using the criteria of depreciation and market price, in the form that is determined in accordance with the amortisation period and its intrinsic characteristics.

2. On a daily basis, the management company shall determine the value of the assets of the Fund and of the shares, as set out in the previous paragraph. The management fee shall be payable on a daily basis and shall not exceed the limits laid down in regulation.

CHAPTER III

Collective Investment Institutions Managers and Depositories

Article twenty-seven.-Requirements of the Managers and Depositary.

1. The Managers of the Collective Investment Institutions shall be anonymous corporations, which shall meet the following requirements:

(a) In any event, they will have own resources of 50 million pesetas, increased by 5 per 1,000 of the real value of the managed assets, which does not exceed 10 billion pesetas, and a 3 per 1,000 excess pesetas (a) figure, unless they provide sufficient guarantee to complete them up to that amount. These resources will be kept in a situation of easy implementation.

Own resources that exceed the above minima can be freely invested. They may only go to the credit to finance free disposal assets and have a maximum limit of 20 per 100 of the assets. Under no circumstances may they issue bonds, promissory notes or effects, or give a guarantee or pledge the assets in which the minimum own resources referred to in the preceding paragraph are materialised.

The provisions of this paragraph shall not apply to the asset managers referred to in Article 12.4 of this Law.

b) The shares will be nominative.

(c) The administration and representation of Collective Investment Institutions and the management of assets of assets, advice on financial matters and intervention in the field shall be the exclusive social object. placement of public and private emissions.

d) Among its governing bodies will be a Board of Directors.

2. The FVCs may also be the FVCs of the Chartered Intermediary Agents registered in the corresponding Register, provided that they meet the requirements of capital, audit, information and other requirements established by this Law.

The conditions under which the administration of foreign assets acquired under the law of control of foreign assets can be contracted with entities domiciled outside the national territory shall be determined. changes.

3. Banks, Savings Banks, Credit Unions, Colleges of Mediators Agents and Instrumental Societies of Chartered Intermediary Agents registered in the relevant Mercantile Registry may be deposited.

The conditions under which the deposit of foreign securities may be made will be determined.

4. Each Collective Investment Institution will have one Depositary. No one may simultaneously be the Manager and Depositary of the same Institution of Collective Investment, except in cases where, on a provisional basis, this possibility is permitted under Articles 28 and 32 of this Law.

Article twenty-eight.-Replacement of Managers and Depositary.

1. The Management Company and the Depositary may request their replacement as such when they consider it appropriate, by writing to the Ministry of Economy and Finance both, and the new Management Company or new Depositary to be declared willing to accept such functions, with an interest in the corresponding authorization. In no case may the managing company and the Depositary give up the performance of their duties until the requirements and formalities for the designation of their substitutes have been fulfilled.

2. The insolvency proceedings of the Management Company or the Depositary do not result in the dissolution of the Collective Investment Institution administered or guarded but those will cease in the management or custody of the Fund, the procedures for the for the replacement of the Gestora or the Depositary in such a way as to be regulated.

3. The replacement of the management company or of the Mobiliary Investment Fund Depositary, as well as the changes in the control of the management company, shall confer on the members a right of separation or drawback which they may exercise in the the form and time limits laid down by the respective Management Regulations. To this end, the substitution and exchange referred to must be communicated to the participants with the publicity and within the period prescribed by the Regulation of this Law.

Article twenty-nine.-Obligations and responsibility.

1. The managing companies and the depositaries shall act, in the interests of the unit-holders, in the investments and assets they administer or preserve. The depositaries shall also exercise the function of vigilance and guarantee before the members and shareholders, in the terms established in this Law, ensuring that the management carried out by the management companies and the collective investment institutions comply with the laws and regulations.

2. The managing companies and the depositaries will be liable to the members of all the damages that will be caused to those for the failure of their respective legal and regulatory obligations. The management company and the depositary are obliged to require this liability on behalf of the unit-holders in the investment or assets managed.

CHAPTER IV

Other financial collective investment institutions

Article thirty.-Applicable legislation.

Financial collective investment institutions not classified in this Law in which the defining circumstances of Article 1 are met. shall be subject to the provisions of Chapters I and V, as well as Articles 10 and 11 thereof, extending the deposit obligation laid down in Article 10 (3) to all of its assets.

CHAPTER V

Accounting verification and sanctioning regime

Article thirty-one.-Accounting verification in inspection.

1. Once a year, the verification and verification of the accounting and information documents of the Collective Investment Institutions shall be carried out in accordance with the auditing and verification rules, generally accepted by experts or Societies of experts with the appropriate professional qualification, who fulfil the requirements of independence, registration and guarantee provision, and submit to the control system which is established by the Government for the sole purpose of this Law.

The regulatory fixation of the independence requirements will take into account the maximum percentage of income that the expert can receive from a single firm; the prohibition of the trend of shares or shares of the Institutions and how many circumstances may involve direct or indirect dependence on the institutions or entities related to the institutions. In any event, the experts shall record in their audit that circumstances which, according to the laws and their own judgment, involve a relationship of dependence are not given in them.

The amount of guarantees deposited, as well as the guarantees or liability insurance payable, will be in relation to the one that can be derived from their performance.

2. It is for the Ministry of Economy and Finance to inspect the institutions governed by this Law and to monitor compliance with the obligations laid down therein, as soon as they are not expressly attributed to other Departments or Bodies.

Article thirty-two.-Infractions and sanctions.

1. The infringements are classified according to their respective importance. in three categories: Leves, serious and very serious. The reoffending in the same infringement, within a period of three years, shall determine that it is qualified according to the higher immediate category. However, in minor infringements, it is understood that there is a repeat offence when the same offence is committed three times in the same year or six times within the three-year period.

2. Minor offences are the facts which lead to 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 consideration:

(a) The reference, outside the time limits laid down in regulation, to the information which the institutions and their managers must submit, in accordance with the provisions of Article 8. of this Law.

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

c) The keeping of the accounts, according to criteria other than those expressed in Articles 14, 21 and 26 of this Law.

(d) excess investment in the coefficients set out in Article 4, provided that it is of a transitional nature and does not exceed 20 per 100 of the legal limits.

e) The slight negligence in the performance of the audit functions.

f) Failure to comply with other obligations or prohibitions laid down in this Law, in the Legal Regime of the Company, in regulatory provisions or in the Statutes or Regulations of Management of the Institutions, provided that, by their nature, it is not to be classified as a serious or very serious infringement.

3. Serious infringements are those that mean non-compliance with formal obligations or substantive rules when the action or

omission from a certain and serious danger or seriously damages the interests of the shareholders or third parties. They have this consideration:

(a) The lack of referral of the information referred to in Article 8. of this Law.

(b) The lack of publication of the information to the partners and the public provided for in the same precept.

c) The excess investment 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 11 on obligations vis-à-vis third parties.

e) Failure to comply with the deposit obligation laid down in Article 10.

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

g) Failure to comply with the provisions of Article 4.5.

(h) Failure to comply with the minimum investment ratio of Articles 10 and 18 where the lack of investment is transitional and does not exceed 20% of the investment rate.

i) Serious negligence in the exercise of audit functions.

j) Failure to comply with any other obligations or prohibitions laid down in this Law, in the Law of the Legal Regime of Companies, in the Regulations or in the Statutes or Regulations Institutions which by their nature should not be classified as a minor or very serious infringement.

4. Actions or omissions are very serious infringements, whatever their nature, which, in breach of the law, puts the interests of the shareholders, members and third parties very seriously or seriously injures the interests of the shareholders, of the institutions. They have this consideration:

a) The omission or falsehood in the accounting and in the information to be provided or published, in accordance with this Law.

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

(c) Failure to comply with the accounting verification obligation set out in Article 32.

d) Failure to comply with the prohibition on pignoration imposed in Article 10.3 and the conduct of securities transactions or loans with infringement of the rules laid down in law.

e) Failure to comply with the minimum investment ratio of Articles 10 and 18 when it is not to be qualified as a serious infringement.

f) The acquisition of own shares in the fixed capital investment companies, except as provided for in Article 47 of the Law on the Legal Regime of Companies.

g) The purchase and sale of the shares in the variable capital companies and the issuance and redemption of shares with non-compliance with the limits and conditions imposed by this Law, its complementary provisions and the Statutes and Regulations of Management of the Institutions.

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

i) The resistance and refusal to the inspection provided for in Article 31.2.

j) The false or default in the audit reports.

k) The performance of transactions with non-compliance with the limitations set out in Article 6.

(l) Failure to comply with the other obligations and prohibitions laid down in this Law, in the Law of the Legal Regime of the Company, in Regulations and in the Statutes and Regulations of Management of the Institutions where by their nature it should not be qualified as a minor or serious infringement.

5. The penalties will be:

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

b) For serious infringements, public admonition, temporary suspension of administrators and fine up to 30 per 100 of the offence if it is encrypted or, in another case, up to 10 million pesetas, and

c) For the very serious infringements, final suspension of administrators, fine up to 50 per 100 of the infringement if it is encrypted or, in other case, up to 25 million pesetas, temporary or definitive exclusion of the (a) special registers and, where appropriate, entry into the Treasury of the unprescribed amount of all the tax benefits which would have been enjoyed with the corresponding interest on late payment. The rating of an infringement as very serious shall, irrespective of any of the above, carry with it the public admonition of the administrator or administrators responsible for it.

Only the penalties for private admonition and temporary and definitive exclusion from the Register shall apply to the auditors.

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

6. The Director-General of the Treasury and Financial Policy, the Minister for Economic Affairs and Finance and the Council of Ministers will be responsible for imposing sanctions. When such penalties are pecuniary, the former may impose fines of up to 10 million pesetas; the second, of up to 25 million pesetas, corresponds to the imposition of those that are higher than this figure to the Council of Ministers. In the case of non-pecuniary sanctions, the Director-General of the Treasury and the Financial Policy shall be responsible for imposing those on the public, private and public, and the temporary exclusion and suspension of auditors and administrators; the Minister for Economic Affairs and Finance the imposition of the penalties for the final exclusion or suspension of auditors and administrators and the temporary exclusion of the relevant Registers from the management, depository and investment institutions Collective. The final exclusion of these special registers shall be the responsibility of the Council of Ministers.

7. The sanctioning procedure shall be that of Chapter II of Title VI of the Law of Administrative Procedure. However, the private admonition and the financial penalties of less than 100 000 pesetas may be imposed, after hearing the person concerned in summary proceedings. Any complaint shall require the provision of information to be provided for in the case of a confidential information, unless it is manifestly unfounded or in bad faith, without prejudice to any agreement on this case.

TITLE II

Non-financial investment institutions

Article thirty-three.-Basic requirements and applicable legislation.

1. In the constitution and amendment of the non-financial collective investment institutions as defined in Article 1 (2), the provisions of Article 8 shall be observed.

2. To these institutions, in an appropriate manner to the type, structure or form of the substantial legal configuration which they have validly adopted, all the provisions of this Law shall apply in respect of the financial collective investment institutions in the previous title, in particular Article 31.

The principle of risk diversification, contained in Article 2 (2) and Article 4, will apply to these institutions, adapting it to the nature of their investments, the assessment of which is it shall carry out objective criteria, as set by the auditors under its responsibility.

3. The name "Non-financial collective investment institutions", as well as their acronym shall be proprietary to the institutions registered in the corresponding records.

TITLE III

Corporate Tax Regime and Investment Funds

Article thirty-four.-Investment companies would be mobile.

1. Investment companies that do not have their securities representative of the capital admitted to official stock exchange will be taxed on the Company Tax in the form provided for in the legislation in force.

2. Investment firms which have an official stock exchange listing, whether qualified or not, shall have the following special tax regime on income taxation:

(a) The rate of tax on Corporate Tax 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.

c) The dividends that they distribute, in any case, will be subject to retention.

They shall also be entitled to the deduction provided for in Article 29 of Law 44/1978 of 8 September, on the basis of the dividends received by companies received by the taxable person.

Where the recipient is a legal person, he or she shall be entitled to the same deduction as that referred to in the preceding subparagraph, without in any event the deductions set out in Article 24 (1) and (2) of the Law 61/1978, of December 27.

(d) For the purposes of determining the increases and decreases in equity, arising from the disposal of transferable securities, the rules on the calculation of securities that are in force at any time shall apply to these companies. in the Tax on the Income of the Physical Persons.

The regime set out in this paragraph will be provisionally applicable to the newly created investment companies, in a condition that within two years, counted from their registration in the Register The securities representative of their capital are admitted to official listing on the stock exchange.

3. The constitution, transformation into another type of Collective Investment Institution, capital increase and the merger of fixed capital investment companies whose representative capital stock has official stock exchange listing, Qualified or not, they will enjoy a reduction of 95 per 100 in the tax base of the Tax on Patrimonial Transmissions and Documented Legal Acts.

4. In the case of exclusion from the official listing of the investment companies in the field referred to in paragraph 3 of this Article, the loss of the special tax system shall be understood as referring to the date on which the said special tax scheme is actually incurred. exclusion.

Article thirty-five.-Investment funds.

1 The arrangements set out in the previous Article shall also apply to investment funds, with the following particularities:

a) The results that they distribute, in any case, will be subject to retention.

They shall also be entitled to the deduction laid down in Article 29 of Law 44/1978 of 8 September, on the basis of the dividends of companies received by the taxable person.

Where the recipient is a legal person, he or she shall be entitled to the same deduction as that referred to in the preceding subparagraph, without in any event the deductions set out in Article 24 (1) and (2) of the Law 61/1978, of December 27.

(b) In the case of repayment of shares, the difference between the redemption price and the acquisition price shall have the consideration of the consideration of an increase or a loss of assets, not being therefore subject to retention, but shall give the right to the application of the deduction referred to in point (a) above.

(c) In the case of transmission by unit-holders other than those referred to in point (b) above, the general scheme of property increases and decreases shall apply, without the right to the application of deduction for such a concept.

2. Members of the investment funds in money market assets shall not be entitled to the deduction for investment in transferable securities as laid down in Article 29 (h) of Law 44/1978 of 8 September of the Income Tax Natural Persons.

3. The constitution, transformation into another type of Collective Investment Institution and modification of the variable capital investment companies and the investment funds shall enjoy exemption in the General Tax on Transmissions Patrimonial and Legal Acts Documented.

TITLE IV

Wealth management companies

Article thirty-six.-Registration, obligations and sanctioning regime.

1. Commercial companies having as their sole or principal social object the management and administration of portfolios of transferable securities and other financial assets on behalf of third parties, advice on financial matters and intervention in the placement of public and private emissions may apply for registration in the Administrative Register of Heritage Management Societies.

This denomination, as well as its acronym , will be proprietary to the entities that consist of it.

2. The relationship of its partners must be known publicly, having, where appropriate, its actions as nominative. Persons entrusted with their management, management or representation may not perform similar functions in the entities whose securities are part of the portfolios and assets managed by the managing companies, unless they submit (a) the advertising regime which is regulated by law.

3. Management companies shall publish an annual report containing the information which is to be determined on their economic and financial situation, their personal composition, the fees to be charged for the services offered in a manner general, the volume of the assets administered or advised and the number of clients. Its accounting and information documents shall be subject to verification and verification in the manner provided for in Article 31 of this Law.

4 The infringements of the obligations imposed on the companies registered in the Register are classified as minor and serious. The failure to comply with the deadlines laid down for the publication of the annual report and for the carrying out of the accounting verification are minor infringements. The lack of publication of this information and the failure to carry out the verification of the accounts are serious infringements.

Only the sanctions of private or public admonition and temporary or definitive exclusion from the Special Register shall apply to them. The bodies responsible for their taxation shall be those referred to in Article 32.3.

FINAL PROVISIONS

First.-Within six months, the government, on a proposal from the Ministry of Economy and Finance, will approve the regulation of this Law.

Second.-As of the entry into force of this Law, which will take place on the same day as its publication in the Official Journal of the State, the Law of 26 December 1958 on the Fiscal Law of the States will be repealed. Mobiliaria de Inversión mobiliaria y los anieles 1. to 17 of Decree-Law 7/1964 of 30 April.

Third.-The percentages, coefficients and limits of capital and assets set out in this Law may be modified by the Government, on a proposal from the Ministry of Economy and Finance, when circumstances of a character are present. This is a financial instrument that will be recommended or requested by the incorporation of Spain into international organizations. The minimum capital or equity requirements may be reduced by the government when the average rate of one year is equal to or greater than 25 per 100 and in the same proportion. Those should be spare parts up to their original value when the stock index recovers significantly.

TRANSIENT PROVISIONS

First.-Companies and investment funds would be able to make it possible for the entry into force of this Law to be entered in the administrative registers as such, with a maximum period of one year from the date of entry into force. Regulation of the Regulation of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council partakers.

In the same period and conditions, they will be able to merge with each other, become another type of Collective Investment Institution, dissolve or modify its social object.

In cases of adaptation, transformation and merger, where these operations are addressed by an Institution to comply with the requirements of this Law, in order to prevent its dissolution or exclusion from the Institutions of Collective Investment, the partners will apply the provisions of article 12 of Law 76/1980, of December 26, on Tax Regime of the Business Mergers, for the purpose of the new titles or participations that they can receive as as a result of the above mentioned operations.

However, the registered companies and funds shall have a period of three years to reach the legal minimum capital or equity and the minimum number of partners and unit-holders, as well as to adjust the valuation of their assets. assets as provided for in Article 14 of this Law. The maximum period for adapting investments to the coefficients of Article 4. will be five years.

Second.-The provisions of this Law on the Tax Regime of Companies and Investment Funds shall enter into force on 1 January of the calendar year following that of their publication and shall apply to the financial years start on the expressed date. The amount of the increases or decreases in equity that occur in the aforementioned financial years for the disposal of securities integrated in the institutions ' portfolio at the entry into force of this Law shall be determined by the value of acquisition of the average official price of the last month of the financial year preceding the entry into force of the tax regime or, failing that, the corresponding theoretical value, according to the balance sheet of the financial year.

The quoted acquisition value will be applicable whatever the acquisition cost is accounted for.

When the valuation of the assets is in accordance with the provisions of Article 14 of this Law, within the time limit set out in the previous transitional provision, they shall be computed as acquisition securities effectively. accounted for.

Third.-The provisions of the last paragraph of Article 34 (3) of this Law shall also apply to movable investment companies incorporated prior to the entry into force of this Law, two-year period referred to in that subparagraph from the date of entry into force.

Fourth.-The Government, on a proposal from the Ministry of Economy and Finance, will adapt, as soon as possible, to the provisions of the Law the tax regime of the Spanish public limited companies that have for exclusive purpose the of shares of foreign companies and which were created pursuant to Article 9. of Decree-Law 10/1959 of July 21.

Fifth.-The modifications to be made by the managing companies to adapt to the provisions of this Law and its Regulations will be exempt from any taxes that are taxed.

ADDITIONAL PROVISIONS

First.-Prerequisites for the formulation of any general appeal to public savings by any person, natural or legal, the following:

(a) The verification of the financial statements of the appellant by the experts or Societies of legally competent experts.

(b) The dissemination of information on its economic and financial situation with the minimum content that is regulated.

(c) The authorization by the Ministry of Economy and Finance of the publicity to be carried out on the appeal and which shall necessarily refer to the information referred to in the preceding paragraph.

The Public Entities and the Institutions subject to a Special Financial Statute are exempt from this rule.

Failure to comply with this provision will be fined for a maximum amount of 2 per 100 of the resources collected through the general appeal for public savings. The bodies responsible for their taxation shall be those referred to in Article 32.3 of this Law.

Second.-Within the Budget Law, and with effect during the period of application of the Law, the rate of charge provided for in Article 34 of this Law may be modified.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Palacio de la Zarzuela Madrid, 26 December 1934.-JUAN CARLOS R.-The President of the Government, Felipe González Márquez.