Hedge Funds in SpainUpdated on Friday 12th August 2016
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Investors with an extensive experience in the field of investment activities can set up a hedge fund in Spain, which is a type of fund usually addressed to qualified businessmen, operating in fields such as banking, insurance, pension management and so on. Entrepreneurs who want to set up a fund in Spain can receive an in-depth presentation on the applicable legislation and on the incorporation procedure from our team of Spanish lawyers.
Legislation applicable to Spanish hedge funds
A hedge fund is a type of alternative investment fund. The fund is set up in order to provide the highest level of return on investment, following various investment schemes.
One of the main advantages of opening a hedge fund is that the investor has the opportunity to invest his finances in the way he or she prefers, as the strict legislation applicable to collective investment schemes is not applicable in this case.
It is important to know that the hedge funds have a higher level of investment risks, as the investors have no restrictions on investment aspects.
Hedge funds in Spain fall under the category of open-ended collective investment undertakings; our team of Spanish lawyers can offer more details on this matter.
Alternative investment funds in Spain
Hedge funds are regulated by the alternative investment funds (AIF) rules, namely the Funds Act. According to the legislation, a Spanish AIF manager is allowed to manage alternative investment funds registered in the European Union (EU).
The provision is also available for authorised management companies registered in EU, which can manage AIFs in Spain. However, the management companies should appoint a local representative, who is a tax resident in Spain.
The local legislation allows the marketing of the AIFs, following the rules of the Law 22/2014. The legislation permits the marketing of Spanish AIFs on international markets, as well as the marketing of foreign AIFs on the local investment market.
Businessmen interested in receiving more details on the hedge funds legislation available in Spain, can address to our Spanish law firm for legal assistance.