- The public consultation phase for the transposition of the Directive on the issuance and supervision of guaranteed bonds and the Directive on cross-border distribution of collective investment organizations is opened
The Ministry of Economic Affairs and Digital Transformation has brought to public consultation the transposition of Directive 2019/2162, on the issuance and supervision of guaranteed bonds and Directive 2009/1160, on cross-border distribution of collective investment organizations.
Both regulations favor the integration of the capital market, increasing the financing possibilities for companies and households, as well as their investment options, establishing in their respective areas homogeneous and harmonized conditions for the benefit of savers and investors throughout Europe.
Transposition of the Directive on the issuance and supervision of guaranteed bonds
The European Commission published in December 2019 the legislative package on guaranteed bonds, which includes a Directive and a Regulation. Guaranteed bonds are assets issued by very high quality credit institutions because they have a double guarantee, that of the issuing entity and that of a set of assets.
The consultation that begins today is aimed at obtaining the opinion of society, directly or through the organizations representing the sectors involved, on the set of national options.
European standards will harmonize the main structural elements that must be collected by the guaranteed bonds in the European Union and will favor the construction of a deep, high quality and transparent market for this type of products.
The national options raised, which are consulted in this first phase, refer to the possible establishment of a control body for the set of assets that guarantee the values for continuous monitoring, the creation of the figure of a second bankruptcy administrator in case of insolvency or resolution, or the way to implement the segregation of hedge assets. It also asks about the option of establishing extendable expiration structures for guaranteed bond programs, the level of overcollateralization required, the type and frequency with which investors should be informed to ensure greater transparency, as well as how address the transition to the new regulatory framework.
Transposition of the Directive on cross-border distribution of collective investment organizations
The Ministry of Economic Affairs and Digital Transformation also initiates the transposition of the Directive on the cross-border distribution of collective investment organizations, which regulates the operations between community countries of collective investment organizations and alternative funds, including venture capital. This rule is part of the Capital Market Union and modifies the UCITS Directive -Directive on certain collective investment bodies in transferable securities- and AIFMD -Directive of Alternative Fund Management-.
The standard favors the integration of the capital market, establishing homogeneous conditions that will increase competition, investment attraction and legal certainty. It also facilitates access to investment for retail customers between different Member States.
The Directive is complemented by a Regulation that reinforces the principles applicable to commercial communications of investment funds aimed at retail investors –UCITS- and extends them to managers of alternative investment funds, thereby increasing the level of consumer protection.
The consultation that opens today aims to gather the proposals of the operators to improve the regime of collective investment institutions.
