MIFIR/MIFID/ESI/IIC
Directive (EU) 2019/1160: Cross-border distribution of Collective Investment Undertakings
The EU Directive 2019/1160 was born with the sole objective of eradicating the barriers to cross-border distribution of the RECs. Regulation (EU) 2019/1156, which develops the Directive, has the same…
Types of Investment Funds
Investment funds are a type of collective investment schemes (CIS). They are configured as assets, without legal personality, belonging to a plurality of investors. The objective of the CIS is…
The service of reception and transmission of stock exchange orders (RTO)
The service of reception and transmission of stock exchange orders (RTO)? It is the process whereby the Investment Firm receives the order (of buying or selling) and it transmit that…
Assessment of appropriateness and suitability
The assessment of appropriateness aims to know the experiences and financial knowledge of the client. The suitability assessment refers to some additional knowledge about those detected in the suitability test.
CLO bonds
CLO bonds are debt securities, the collateral of which is a leveraged loan. That is, they are guaranteed by loans, generally granted to companies, although personal loans can also be…
Book Entry Securities Representation
The book entry regime has simplified the registration and accounting of securities traded on stock exchanges. The disappearance of paper for the representation of property has led to cost savings…
Securitization
Currently a booming financial technique, securitization saw its peak shortly before the 2008 Financial Crisis. After the Financial Crisis, it was clear that if used correctly, securitization would prove invaluable…
Covered bonds
Guaranteed Bonds are securities issued by credit institutions that are backed by a basket of assets. This basket of assets is called a hedge pool. This set is normally made…
Pre-marketing
Pre-marketing is a technique introduced to remove barriers to the cross-border distribution of funds. The aim in harmonising this practice is to increase its transparency and legal certainty.
Securities lending and repurchase transactions
Stock loans and repos are efficient portfolio management techniques. These techniques are commonly used by the management companies of collective investment institutions. The advantage of these techniques is that their…
Sub-Custodian Agreement
the custodian or depositary of a collective investment scheme may delegate its functions to a sub-custodian. This will generally be the case for the custody of international securities. However, the…
European passport for ESISs, IICS and SGIICs
The European Passport is talking about authorization to market certain financial products within the territory of the EU. In addition, it is necessary to differentiate the type of financial product…
The Incentives of the MiFID Directive
we are going to examine incentives, what they are and thus what MiFID requires from the investment companies (referred to as the ESIs)
What is market timing about?
What is market timing about? Market timing is an investment or trading strategy with an attempt to make decisions of financial assets by predicting how the stock market is going…
The Active vs Passive Management Investing Debate
The Active vs Passive Management investing debate What is active fund management? An active fund management is a more hands-on approach to invest and requires a manager to act the…
Mutual Fund Fees (Trailer, Management, Platform, Redemption)
Costs matter. And the only you get is what you don´t pay for. Beware the fees. In investing there are fees everywhere. Here we show a bunch of them.
The Basics of Brokers
What is a Broker in Capital Markets? A broker usually charges a fee or commission for executing orders submitted by an investor. In a capital market, brokers may also provide…
Brief note on Asset Management Companies in Spain
The Securities Market is highly regulated in Europe. The EU, through the UCITS and MiFid regulations, is determined to establish a single stock market for all EU countries. The EU…
