The Spanish government published a new ministerial order that authorizes the lending of certain securities and assets from Collective Investment Schemes (CISs).
“This is an important milestone in the development of the Spanish capital market and has been a long-term advocacy effort for ISLA and its members, dating back many years,” the International Securities Lending Association (ISLA) wrote on Linked In.
According to the order (machine translated to English): “The fundamental objective of this regulation is to enable securities lending by [collective investment schemes], allowing them to offer higher returns to their participants and shareholders, all without compromising investor protection and the security of their investments.
“To this end, the order develops the rules applicable to securities lending transactions, establishes a guarantee regime for such transactions, imposes internal control obligations for management companies and investment companies, and includes the obligations of the depositaries of lending institutions, who must ensure compliance with the rules applicable to securities lending.”