Regulation development and MiFID impact on collective investment in Spain
| Date | 22 February 2008 |
| Published date | 22 February 2008 |
| Pages | 85-92 |
| DOI | https://doi.org/10.1108/13581980810853235 |
| Author | Begoña Torre Olmo,Sergio Sanfilippo Azofra,Carlos López Gutiérrez |
| Subject Matter | Accounting & finance |
Regulation development
and MiFID impact on collective
investment in Spain
Begon
˜a Torre Olmo, Sergio Sanfilippo Azofra and
Carlos Lo
´pez Gutie
´rrez
Faculty of Economics, University of Cantabria, Santander, Spain
Abstract
Purpose – The objective of this paper is to review Spanish regulatory evolution in the collective
investment area, which is very recent in its principal aspects.
Design/methodology/approach – The paper assesses the way investment funds are impacted by
the Markets in Financial Instruments Directive (MiFID) and the Spanish legislation.
Findings – The legal aspect of the Collective investment institutions (CII) in Spain has experienced a
major renovation over the past four years. There were three basic principles: increased flexibility of the
CIIs’ regime, reinforced protection for investors, and improved administrative intervention regime.
Although MiFID focuses its attention on financial markets and investment firms, it also implies an
important change for collective investment institutions. New conditions arising after the introduction
of this norm are imposing major challenges for financial entities, supervisory authorities and financial
markets.
Research limitations/implications – The unified regulatory system, even after the
implementation of MiFID, remains fragmented, and the way in which it will apply to investment
funds is not easy to disentangle.
Practical implications – As a result of this process, it is hoped that levels of competitiveness will
increase and transaction costs fall, which will ultimately result in improved conditions for investors
and more efficient companies.
Originality/value – The paper establishes the implications of the MiFID and the UCITS Directives
for the investment fund industry in Spain.
Keywords Investment funds,Regulation, Spain
Paper type Research paper
1. Introduction
As in all other developed countries, collective investment in Spain is a very important
industry with high-growth expectations. It has two roles within the financial system:
on the one hand it is a way of financial disintermediation and on the other it is a
savings instrument that enables small investors to access capital markets unde r
achievable conditions, through diversified investments with professional mana gement.
The objective of this paper is to review Spanish regulatory evolution in this area,
which is very recent in its principal aspects. Major developments are also still to be
resolved, especially concerning hedge funds and other non-UCITS assets. These
instruments have great developmental potential if compared with the preceding
evolution in other EU countries.
Furthermore,it would be impossible to tackle this subject withouttaking into account
the fact that Markets in Financial Instruments Directive (MiFID), which plays an
importantrole in regulating European financialmarkets, came into effect on 1 November.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
Regulation
development and
MiFID impact
85
Journal of Financial Regulation and
Compliance
Vol. 16 No. 1, 2008
pp. 85-92
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581980810853235
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