Starting with 2010, Italy has begun to amend its legislation for the establishment of investment funds. Among the most welcomed changes was the introduction of the Alternative Investment Funds Managers Directive, which allowed for the creation of closed-ended and open-ended retail investment funds in Italy. The main laws governing these types of investment funds in Italy are:
- – the Decree No. 30/2015 which provides for the general requirements to open Collective Investment Schemes;
- – the Unified Financial Law;
- – the Bank of Italy Law;
- – the Securities and Exchange Commission (CONSOB) Regulations.
The last two laws also provide for the authorities supervising investment funds in Italy: the Italian National Bank and the CONSOB. Our company registration consultants in Italy can offer more information on the laws related to closed-ended retail funds.
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Setting up a closed-ended fund in Italy
The establishment of closed-ended retail funds in Italy is quite simple and is subject to the approval of the National Bank. Italian closed-ended retail funds may take contractual forms, like any other investment funds with units, or investment companies with fixed capital (SICAF) which are usually registered as joint stock companies with the Italian Companies Register. The SICAF will have shares as main assets.
The Italian closed-ended fund must have the appropriate share capital and must have the documents providing for the objectives of the fund different from those of other funds in order to be approved by the National Bank. Also, this type of fund may only be managed by a manager authorized under the AIFM Directive.
Restrictions on investments for closed-ended retail funds in Italy
The differences between open-ended and closed-ended retail funds in Italy will usually reside in the restrictions imposed to the two types of funds. Closed-ended funds will be imposed the following restrictions:
- – the financial instruments which are not listed on the Stock Exchange and units issued should be valued at maximum 20% of the asset value;
- – the instruments issued by a company should have a maximum value of 5% of the fund’s asset value;
- – the credit derivatives which are not listed on the capital market should not exceed 10% of the fund’s value;
- – the shares owned by the fund are limited at 10% of the voting capital;
- – the deposits are limited at 20% of the asset value;
- – short selling is forbidden.
We can help you start a business in Italy if you are a foreign citizen interested in investing in this country. You have at hand all our support for the preparation of documents, registration for paying taxes, opening a bank account and obviously obtaining the Certificate of Incorporation. We can also help you with obtaining a VAT number, but all the details can be provided by one of our company formation representatives in Italy, so don’t hesitate to contact us online or by phone.
For assistance in opening a closed-ended retail fund, do not hesitate to contact our Italian company formation agents.