Activities and Services

As established in Law 7/2013, May 9th, on the legal framework of the operating entities in the Andorran financial system and other provisions regulating the exercise of financial activities in the Principality of Andorra [Llei 7/2013, del 9 de maig, sobre el règim jurídic de les entitats operatives del sistema financer andorrà i altres disposicions que regulen l’exercici de les activitats financeres al Principat d’Andorra] and Law 10/2008, 12th June, on the regulation of collective investment schemes under Andorran law [Llei 10/2008, del 12 de juny, de regulació dels organismes d’inversió col·lectiva de dret andorrà], CIS Management Companies are companies that, under Andorran law, carry out the following functions as their main activity, among others:

• Elaboration and public deed constitution of CIS regulations, together with the depositary institution;
• Establishment of the depository written contract, together with the depository institution;
• Elaboration, issuance, distribution and elimination of certificates of participation, together with the depositary institution;
• Asset management, which includes:
  
  • Investment decisions,
  • The exercise, through the depositary, of the economic and political rights inherent in the assets;
• Administrative management activities, which include:
  • The determination of liquidation values, including the applicable tax regime,
  • Accounting and legal tasks,
  • The preparation of public reports and prospectuses,
  • Determination of the results to be distributed (only for distribution CIS),
  • The control of compliance with the applicable regulations,
  • The management of the participants registry,
  • Full judicial and extrajudicial CIS representation against all types of natural and legal persons;
• Liability management, which includes:
  • Acceptance of subscriptions, redemptions (shareholder registry) and transmission to the depositary of the corresponding orders,
  • Ordering reimbursement/sales of shares to the depositary;
• Activities related to distribution, which include:
  • The submission of documentation (advertising reports, management reports, etc.),
  • The selection of distributors.

Ultimately, the obligations of CIS Management Companies are those established in Law 10/2008 [Llei 10/2008].