Holding Restrictions – Investment Funds – Spain
Restrictions on customers
Open-ended funds
No general restrictions on customer residency for holdings held through CBL. However, certain funds may impose specific restrictions on investor domicile.
Some restrictions include:
- Corporate/Investment documentation of the fund (e.g. articles of association or contractual documentation)
- Passporting requirements in relation to marketing/sale in or into the relevant other jurisdiction. If the fund does not have an authorisation to market its shares in a jurisdiction other than Spain, in principle, the fund would not be able to engage customers from that region.
- Spanish funds are subject to laws enforcing UN / EU sanctions which may bar transactions with residents of certain sanctioned countries.
- Spanish funds are also subject to AML laws which impose restrictions on transactions with residents from “high risk” / blacklisted jurisdictions.
- For the open ended funds such as UCITS, there might be certain transparency requirements for Spanish retail clients.
Restrictions on settlement
There is no general restriction on settlement, however certain funds may impose specific settlement or transfer restrictions. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
Disclaimer
The information contained in the Holding Restrictions is based on a legal questionnaire obtained by CBL that was issued on 28 April 2022. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information. If there is any discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Holding Restrictions do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the holding restrictions and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage, or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.