Relevant news for Spanish Free Investment Funds

Royal Decree 1180/2023, of December 27, introduces flexibility to the framework applicable to IICILs (Instituciones de Inversión Colectiva de Inversión Libre/Free Investment Funds) and modifies other aspects of the regulations applicable to collective investment institutions (CIIs).

Key developments:

• IICIL marketing framework. The marketing of IICILs is made more flexible, even allowing retail investors to access illiquid CIIs or those channeling credit strategies.
• Possibility of reducing the minimum investment requirements for clients that have entered an advisory agreement. The minimum investment for retail investors that have signed an advisory agreement is reduced in line with the provisions of the private equity regulations.
• Marketing of IICILs to employees of the Management Company or to investors with relevant management or advisory experience. Also, in line with the provisions of the private equity regulations, the marketing of IICILs to these groups had been made more flexible.
• Gates framework. The “gates” framework is improved by eliminating the obligation to grant the redemption in the following gate.
• Modification of the framework applicable to fees. Changes are introduced in the collection of success fees in line with the latest ESMA criteria. Furthermore, the system for the collection of custody fees is made more flexible.