The information contained in this Newsletter is of a general nature and does not constitute legal advice

October 2008




1. ACCOUNTING CRITERIA (Más información)

1.1 Formal and procedural issues (Más información)

1.1.1 Unity of block accounts (Más información)

1.1.2 Reporting of annual accounts (Más información)

1.2 Financial CIS (Más información)

1.2.1 Financial assets and liabilities (Más información)

1.2.2 Equity instruments (Más información)

1.3 Real estate CIS (Más información)

1.3.1 Real estate assets (Más información)

1.3.2 Calculation of result (Más información)


2.1 Scope and contents of the reports (Más información)

2.2 Sending of information (Más información)

2.2.1 Obligees (Más información)

2.2.2 Reporting to the CNMV (Más información)

2.2.3 Reporting to unitholders and shareholders (Más información)


On 11 September 2008, the CNMV passed two circulars which introduced several modifications to the rules regarding the information that the Spanish Collective Investment Schemes (“CIS”) must make public and the manner in which this is to be done.

Circular 3/2008 on accounting rules, annual accounts and confidential statements relating to CIS, was published on 2 October 2008 and will come into force on 31 December 2008. Its main purpose is to adapt the CIS accounting framework to the innovations of the General Accounting Plan (the “GAP”) approved by Royal-Decree 1514/2007 of 16 November. Circular 3/2008 revokes Circular 7/1990 on financial CIS, and certain sections (in particular, section two and regulation nine) of Circular 4/1994, for real estate CIS, which governed the previous accounting framework. 

Circular 4/2008 was published on 7 October 2008 and will come into force on 31 March 2009 (thus, it will be in force from the second quarter of 2009). This Circular contains regulations on the contents of CIS quarterly, half-yearly and annual reports and of their mutual fund statements, adapts the current regulatory framework and abrogates the regulations in force until its entry into force.  


Circular 3/2008 sets out the applicable regulations for financial and real estate CIS on reporting obligations in connection with their accounting information.

One of the significant aspects of the new regulations is the application of the “fair value” principle as valuation for the entire CIS assets portfolio. Under the prior framework, unpaid capital gains of these assets were not included in the balance sheet within pro-forma accounts. The net amount (free of charge) of these unpaid capital gains was used to calculate the net asset value of the CIS. With the new regulations, the CIS net asset value will be closer to reality.

1.1 Formal and procedural issues

1.1.1 Unity of block accounts

Without prejudice to the obligation to report information broken down by sub-fund level and/or unit class or share class level, the CIS must publish their annual accounts in block. In addition, CIS are exempt from the business combination regulations (only applicable in cases of mergers between CIS) and from accounting consolidation rules.

1.1.2 Reporting of annual accounts

The balance sheet and the profit and loss statement comprising the annual accounts must be audited and filed with the CNMV in accordance with the new templates established in regulation 21 of Circular 3/2008. The cash flow statement will not be required, since it does not accurately represent the CIS present status.

1.2 Financial CIS

According to GAP terminology, the following are some of the different types of financial instruments:

1.2.1 Financial assets and liabilities

Both sections are treated similarly under Circular 3/2008, although they are separate and have specific features. They have been classified as “other financial assets and liabilities at fair value with changes to profit and loss”, according to the GAP criteria.

However, in the case of treasury or cash that are not deposits forming part of the portfolio and other credit and debit balances, the harmonised cost or the face value criterion will apply, the latter being more suitable in view of its nature.      

1.2.2 Equity instruments

Circular 3/2008 classifies CIS shares and share quotas in this section, which will be reflected in the mutual fund assets account as “reimbursable funds attributed to unitholders and shareholders” rather than financial liabilities. This is the case, since unitholder and shareholder’s contributions represent their ownership over the CIS and, therefore, unitholders and shareholders will be placed after creditors in the event of winding-up.

1.3 Real estate CIS

1.3.1 Real estate assets

As mentioned above, the of fair value criterion will be used for valuation. This is the case for properties contained in the real estate investments portfolio of the CIS, and will also be used as a calculation basis of the value for those properties used by the investment company itself.

1.3.2 Calculation of result

The results of real estate investments will be reduced by additional, supplementary or refurbishment investments regarding construction work already carried out and/or compensations to lessees that have been accounted for.


2.1 Scope and contents of the reports

Circular 4/2008 will apply to quarterly, half-yearly, and to the first part (relating to the second semester) of the annual reports. Amendments introduced must begin to be reflected in the first half-yearly reports of 2009.

As a significant novelty, these reports may be:

a) Full, providing a detailed account of the investment portfolio.

b) Simplified, providing information of subtotals or totals.

In both cases, reports must have, among others, the following minimum contents:

a) Total expenses, expressed as a percentage over the CIS’ average mutual fund assets.

b) Relevant facts related to the CIS, occurring and announced during the term to which the report refers.

c) Information on related-party transactions referred to in article 99 of the CIS Regulations.

2.2 Sending of information

2.2.1 Obligees

Management companies and, when applicable, investment companies and marketing entities are obliged to provide periodic reports regarding the funds they manage.

2.2.2 Reporting to the CNMV

Publicity and availability obligations relate to complete reports and their submission to the CNMV. Submission should be carried out using the CIFRADOC system.

2.2.3 Reporting to unitholders and shareholders

The CIS unitholder or shareholder will periodically receive free simplified reports prior to and after subscription . Receipt of such reports can be waived as established in Circular 2/2006 for foreign CIS registered with the CNMV. Waivers will be made in writing, on a separate and duly signed document. The sending of information to investors by electronic means is also permitted, whenever so agreed. Both the waiver and the option to send information by electronic means, can be revoked at any time by the investor. Revocation will be carried out in the same way as the waiver: it must be in writing, on a separate and duly signed document, including the date from which it is to be effective.



Full text of these circulars (Spanish version) can be found at:

- Circular 3/2008:

- Circular 4/2008:

The information contained in this Newsletter is of a general nature and does not constitute legal advice