The scope of the information right of investors pursuant to the Spanish EICC Act

The scope of the information right of investors pursuant to the Spanish EICC Act

Abstract:

The requirement of disclosing information to investors and to the Spanish Securities Commission (“CNMV”) currently constitute one of the transparency obligations that the Spanish “Law 22/2014, of 12 November, by which the venture capital entities, other closed-end collective investment entities and companies that manage closed-end collective investment entities are regulated and which amends law 35/2003 of 4 November, on Collective Investment” imposes to the companies that manage closed-end collective investment institutions (“SGEIC” in its abbreviation in Spanish) with the purpose of providing to the market of a legal and economic security environment which will, in ultimate term, promote the investment in the private equity market. Such obligation is in particular important if we consider the potential entry to the private equity market of non-professional or minority investors. Such new investors, not necessarily specialized in the private equity market, will require a stronger protection which is materialized mainly in assuring that are duly informed, during the term in which they invest, of the market in which they are going to invest and of the development and the condition of their investment.

Keywords: Transparency, information right, non-professional investors.