Financial Crime World

Regulation of Public Funds in Andorra

2.1 Investment Advisers and Public Funds

In the jurisdiction of Andorra, investment advisers advising public funds must be authorized by the Autoritat Financera d’Andorra (AFA) to operate within the Jurisdiction. This authorization process is regulated by Act 35/2010 on the legal regime for authorizing the creation of new operating entities within the Andorran financial system.

Registration Process:

  • Filing an application with the AFA
  • Providing documentation and information about the investment adviser, such as its structure, management, and financial situation
  • Passing a fitness and properness test
  • Meeting specific requirements for authorized investment advisers

2.2 Exemptions from Registration or Regulation

There are exemptions for entities that:

  • Act exclusively on their own account as institutional investors (e.g. banking entities)
  • Do not involve the management of clients’ assets (e.g. providers of financial consulting services)

3.1 Foreign Investment Advisers and Public Funds

The AFA has established a regime for the authorization and supervision of foreign collective investment schemes.

Registration Process:

  1. Submission of an application to the AFA
  2. Provision of documentation and information on the investment adviser, such as its structure, management, and financial situation
  3. Passing a fitness and properness test
  4. Meeting specific requirements for authorized schemes

3.2 Licensure Requirements for Marketing Activities

All active marketing activities conducted within the Jurisdiction (by telephone, email, mail or in person) in relation to Andorran or foreign funds may constitute active marketing activities and are subject to local licensing requirements.

Exemptions:

  • Entities exclusively acting on their own account as institutional investors (e.g. banking entities)

3.4 Regulatory Restrictions and Requirements

Entities involved in marketing public funds must comply with the following:

Distribution Fees or Other Charges

There are no regulatory restrictions nor requirements pursuant to distribution fees, which are usually agreed on a free basis between the management company of the funds and the local distributor (in the case of foreign funds).

Advertising and Promotional Materials

Entities must provide clear and accurate information, maintain transparency and integrity in all marketing activities, and ensure that all marketing activities comply with local laws and regulations.

Conflicts of Interest

Entities must disclose any potential conflicts of interest and manage them in a way that is fair, transparent, and in compliance with local laws and regulations.

Anti-Money Laundering

Entities must implement anti-money laundering measures and report any suspicious transactions or activities.

Data Protection

Entities must protect personal data in accordance with local laws and regulations, and ensure that all marketing activities comply with local laws and regulations regarding data protection.