New Asset Management Regime approved
With the goal to simplify the regulation of the sector and standardize national rules in accordance with the European law, the new Asset Management Regime (RGA) was approved through the Law-Decree 27/2023 of 28th, aiming to regulate the activity of collective management of assets in the form of collective investment entities (OIC). With the promulgation of this Regime, the General Regime of Collective Investment Entities (RGOIC) and the Legal Regime of Venture Capital, Social Entrepreneurship and Specialized Investment (RJCRESIE) that regulated this activity were revoked, with the entire regime being concentrated in the one diploma.
The new RGA presents a reduction of the types of entities and collective investment entities, as well as the simplification of the process and reduction of the deadlines for the authorization for the start of activity to be granted by of the Portuguese Securities Market Commission (CMVM).
We highlight below the main changes from this regime:
– Simplification of the catalogue of typologies of management companies that can carry out the activity of collective asset management: only Management Companies of Collective Investment Entities (SGOIC) and Venture Capital Companies (SCR) are eligible for this activity;
– Simplification of the catalogue of typologies of Alternative Investment Entities (OIA): only four types of OIA can now be established depending on the main object of the investment, namely real estate OIAs, venture capital OIAs, credit OIAs and residual type OIAs;
– Management companies are now classified as small or large:
- Small management companies must have a minimum initial capital of EUR 75 000 and are now subject to a simplified authorization regime by the Portuguese Securities Market Commission which has a maximum period of 30 days to carry out the authorization;
- Large management companies shall have a minimum initial capital of at least EUR 125 000 or, if they carry out the activity of registration and deposit of financial instruments, EUR 150 000, and the new Regulation establishes a decision period by the Portuguese Securities Market Commission of 90 days, extendable for 30 days.
The new regime will come into force on May 29.
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[Photo by: Scott Graham, available at unsplash.com]