Country Manual Products
NEW COUNTRY MANUALS PRODUCTS EEA
We would like to inform you that BRP will be introducing an additional manual for all COUNTRY MANUALS PRODUCTS in the European Economic Area (EEA).
– New: The COUNTRY MANUAL PRODUCTS (OUT OF EEA) assumes that investment services/financial products are provided in accordance with the EEA service provider’s license to carry on business in another EEA Member State under the European passport regime.
– The COUNTRY MANUAL PRODUCTS (OUT OF A THIRD COUNTRY) provides an overview of the regulatory framework applicable to the distribution, sale, execution and/or marketing of financial products by a foreign (unlicensed) service provider out of a third country (or within the EEA without a passported licence).
In this context, we would like to inform you that BRP has reviewed and updated its COUNTRY MANUAL PRODUCTS:
SPAIN (OUT OF A THIRD COUNTRY)
Please note the following material changes regarding the above-mentioned jurisdiction:
– In alignment with the Country Manual Private Banking (CM PB), it is highlighted that the provision of investment advice based on a written advisory agreement, which has been requested on the investor’s own genuinely exclusive initiative and which covers the relevant financial services/products, does generally not trigger the “local distribution rules” as the initiative comes exclusively from the investor. In the Country Manual Products Behaviour Template (CM P BT) the two situations – “advice within an ongoing advisory agreement” and “advice without/outside the scope of an ongoing advisory agreement (spot advice)” – are therefore treated differently.
– In further alignment with the CM PB, due to licensing requirements, any active provision of investment advice without/outside of the scope of a written advisory agreement (spot advice) is no longer permitted. Accordingly, the CM P BT now provides the answer “NO” for the relevant onshore and cross-border scenarios, regardless of the client classification.
– On the other hand, the active provision of investment advice as well as the provision of marketing material to Spanish investors based on a written advisory agreement (ongoing advice) is permitted and does generally not trigger the “local distribution rules” (see above). The CM P BT therefore now provides the answer “YES” (or “Grey zone/YES: if covered by an ongoing advisory agreement” for the relevant marketing activities.
– Finally, recent amendments to the local Securities Market Act exempts offers of securities with a total consideration of less than EUR 8’000’000 (former threshold EUR 5’000’000) from the registration requirements.
SPAIN (OUT OF EEA)
Regulatory Overview
The Regulatory Overview reflects the underlying principles of the freedom to provide services, including principles such as the home country rules and mutual recognition. It further explains the concept of general good provisions which must be observed by service providers having passported their license into another EEA Member State (the so-called host country) in addition to the service provider’s home country rules and mentions international private law rules which are of relevance for the cross-border distribution of financial products from an EEA Member State into Spain.
Definitions & Concepts and Behaviour Template
The Definitions & Concepts document still contains the important concepts and definitions specific to Spain while the Behaviour Template reflects the principles set out in the Regulatory Overview. The structure of the Behavior Template, however, has not been changed.
Should you have any questions, please do not hesitate to contact us. info@brpsa.com
Best regards,