Authorization and Registration Processes

The collective investment schemes (hereinafter CIS) are regulated by the consolidated text of 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].

In accordance with article 2 of Law 10/2008 [Llei 10/2008] and with the exception of the cases provided for in article 18, the management of a CIS must be carried out by a legally authorized management company that exercises the control capacity without being the owner of the CIS, with the assistance of a depositary and in accordance with the provisions of Title VI of the Law. Specifically, the aforementioned article 18 "Administration" indicates that when the investment company has not designated a management company to carry out the management of its assets at the time of its creation, the company must submit to the AFA all of the information requested in accordance with the regulations in force for managing entities.

Once the corresponding pre-authorization request is submitted, the AFA authorizes the CIS where applicable, and it must subsequently be subjected to registration in the AFA Registry. Once the registration has been completed, in accordance with article 16.2 of Law 10/2008 [Llei 10/2008], all CIS are subject to AFA supervision and therefore obligated to communicate to the authority all of the information that is required from them, as well as being subject to the corresponding supervision fee.

The documents that must be provided to obtain pre-authorization for the constitution of a CIS under Andorran law, and the obligation to present annual audited accounts, are detailed in Law 10/2008, specifically in Articles 43 and 37 respectively.