Registration and authorization processes

The CIS’s under foreign law that must be registered are those CIS’s that are actively commercialized.

Distribution/commercialization is understood as the active capture of investors that are not legally considered operational components in the financial sector, on behalf of the CIS, its management company or any other entity acting on their behalf, due to the fact that they invest in the CIS’s shares or holdings. In this sense, the intermediation or transmission of orders relating to the acquisition by clients of the CIS’s shares or holdings, will not be considered as distribution or commercialization

The entities that can distribute OIC under foreign law are:

  1. - Banks;
  2. - CIS Management Companies;
  3. - Financial Investment Companies;
  4. - Financial Investment Agencies.

Articles 41, 47.4 and 54 from 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] refer to the distribution and registration in Andorra of CIS’s under foreign law.

The main points to consider for the distribution and registration of a fund under foreign law in Andorra, are the following:

  • Andorran distribution of a CIS under foreign law requires prior registration with the AFA by a local distributor, with which the foreign entity must have signed a distribution agreement.
  • The requirements for registering a CIS under foreign law in Andorra are detailed in article 47.4 of Law 10/2008 [Llei 10/2008]. Applications must be submitted to the AFA by an Andorran entity, which must submit a letter to the AFA to request the registration of the fund under foreign law. The application must enclose the following documentation:
    • Certificate or copy of the authorization granted by the supervisory authority in the country of origin
    • Prospectus and key investor document (KID) of each CIS to be registered,
    • Which category the CIS registry is solicited for (type, class and form),
    • Identification of the media in which the NAV can be consulted,
    • Documentation that certifies that the distributor will have all of the information requested by the management company (annual audit, quarterly reports, etc.);
    • Description of the procedures laid down for the commercialization of the parts in Andorra.