The Spanish
Securities Market
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STRUCTURE, ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
3. INVESTMENT FIRMS (IFS)
The legal regime of IFs and other entities providing
investment services are to be found in Royal Decree
217/2008, of February 15, 2008 and in CNMV Circular
10/2008, of 30 December 2008, on financial advisory
companies.
IFs are those companies whose main activity con-
sists of offering professional investment services to third
parties on financial instruments as defined by law.
The following are considered IFs:
a. Brokerage companies. These are IFs that can operate
professionally, either for third parties or for their own
account, and carry out all investment services and
ancillary services.
b. Brokerage agencies. These are Ifs that can only ope-
rate professionally for third parties, with or without
representation. They may carry out investment and
ancillary services, with some exceptions.
c. Portfolio management companies. These are Ifs that
may exclusively carry out discretionary and indivi-
dualised fund management activities in accordance
with mandates given by investors, and provide advi-
ce on investment.
d. Financial advisory firms. These are those natural or
legal persons which may only provide the inves-
tment service of investment advice, advising compa-
nies on capital structure, industrial strategy, mergers
and acquisitions and the preparing of investment and
financial analysis reports or other forms of general
recommendation relating to transactions in financial
instruments.
The provision of investment advice is now conside-
red an investment service and, as such, people or
companies which dedicate themselves to this activi-
ty in a professional capacity must be IFs.
e. Credit institutions and undertakings for collective
investment in transferable securities (UCITS) are sub-
ject to the provisions of the Securities Market Act
when they provide investment services pursuant to
the said act.
IFs can designate tied agents to carry on inves-
tment services. These agents will exclusively act for
only one IF.
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