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].