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November 10, 2005
Spain lets local asset managers invests in hedge funds
Spain's government is allowing mutual funds to buy hedge funds, clearing the way for asset managers to catch up with peers in countries such as the U.K. and Germany, reports Bloomberg.
Individual investors won't be able to buy hedge funds directly, though they will be permitted to invest indirectly through mutual funds.
Spain is letting domestic firms enter the USD1 trillion business after discussing the measures for about two years. Spanish regulators have been cautious about allowing new funds aimed at small investors after a Madrid-based brokerage collapsed in 2001 with more than EUR100 million euros missing. The delay forced asset managers who want to sell hedge funds to face extra costs of setting up foreign units to market the investments.
The government have also implemented a measure that recognises prospectuses for share sales and bond sales from other countries in the European Union. The measures also regulate maximum commissions that funds may charge, and allow mutual funds to invest as much as 10% of their assets in venture capital.
Posted by su at November 10, 2005 3:18 PM