Alfredo Oñoro, director of Compliance With standards of Cecabank, participates in the XXI Legal Debate FundsPeople to talk on the possibility of that the Collective investment Institutions can provide its portfolio securities to third parties and obtain with it an additional return.
One of the major claims of the industry would be able to do reality in some months. After finishing the public reference term previous on the project of ministerial order that will regulate the securities lending, every time is closer the possibility of that the CII can provide its portfolio securities to third parties and obtain with it an additional return. This standard, among others aspects, deletes the competitive disadvantage between the Spanish CII and those of other countries of the European Union. And is applauded by the participants in the XXI Legal Debate FundsPeople.
A draft is not yet known of the order and it will be necessary to expect to the phase of public audience. As thus explains Elisa Ricón, Inverco'sManaging Director, after the already closed “enquiry will be subjected to public audience a legislative decree that will involve the State Council ”. Precisely, the first time that was tried approve, in 2008, the text fell in that phase. In the second occasion, in 2018, the standard on the air was still earlier, after the public enquiry.
However, the industry wait that this yes time goes out moves forward. “It is not logical that, after several modification transpositions of the Directive UCITS in Spain, simply because of security and harmony legislative, the securities lending was not regulated”, underlines Leovigildo Domene, Financial Regulation director in Deloitte Legal. Is expected, also, that the text is much the same to the one of 2007. Josefina García Pedroviejo, Regulation responsible for member Financial of Pérez-Llorca, remembers that “it was a completely technical text that it does not permit a lot of variation”. In addition, if arrives at go out moves forward, the good news is that, as suggests Ricón, “would be able to be operation from the beginning because, as has already been gone transposing standard that it contemplated it in other countries, is all the regulation”.
Many profits
The Managing Director of Inverco recognises that in the association are “feeling very jolly ” with that the securities lending arrives at be a reality and highlights the intense work of analysis that they have carried out in recent months. “Although the weight of the CII Spanish is less than that one of the international vehicles, that yes can provide securities, the national CII have a turn to invest in Spain a lot more evident than in the case of the foreigners. Therefore, if allows them to him do securities lending, will have access to an additional source of return, improving its competitiveness and promoting the financing of the Spanish companies ”, points out Ricón.
For the managers, can be a very efficient “instrument in flat market moments because they are going to be able to take out a little bit more of return”, García insists Pedroviejo. In the same line, Domene it sees as a “tool more at the disposal of the managers of the CII, that places to Spain in a situation of equity with respect to the rest of the European Union and remembers that “it is going to be a right and not an obligation, therefore, the companies will be able to decide if make use hers or not». In its opinion, «in certain market conjunctures it can result very useful». In addition, as adds Ricardo Plasencia, CMS'S member Aliñana & Suárez of Lezo, “he should not suppose a significant extra cost for the companies, since the loans will be able to them carry out the usual intermediaries that they use the managers for its funds'”daily operations. In fact, explains Ricón, “the standard appointment this measure within the block of techniques for the efficient management of the portfolio”.
The agents
Even so, Domene has two worries: “On one hand, the effective management of the net income that receive the managers and its correct imputation to the funds, then the loan owe do always in profit of the vehicle and of its shareholders; and, for another, the assignment of guarantees that possibly are not aligned with the investment policy of the CII”. Both works it will do usually agents of the securities lending, “that they will be the specialised”financial institutions, Alfredo remarks Oñoro, director of Compliance With standards of Cecabank. The expert insists in which “tables of treasury are already accustomed to do securities lending, with the novelty of that now the spectrum of lenders is expanded. In addition, this figure is that which will take the management of the guarantees and that which will have the portfolio of borrowers, not the manager”.
On the other hand, it is necessary to provide attention to the costs, that they are linked to the idiosyncrasy of each country. “It is significant to harmonise the expenses and explain what you can attribute to n fund and what not. There is a major one focus in the costs, included the next strategy of retail investment, but there is not a homogenous system that it allows comparing expenses, which is why, if is wanted guarantee the responsibility on equal terms in Europe, will be had attribute the same costs in all the countries”, insists Ricón.
Furthermore, the loan has been posed initially for CII and not for pension funds to those which , according to defends Inverco, “he owe spread”. Although in the standard of pensions there is not a limitation, the truth is that have never provided. “Maybe for the absence of specific regulation and because last good protégé is more sensitive, when being a vehicle planned for the retirement and have that long term ”horizon, justifies Oñoro. In any case, considers that “its regulation in the case of the funds would suppose a good opportunity so that its use was spread also to the pension funds ”.
