Regulation No. 2006-03 on Collective Investment Services

REGULATION ON COLLECTIVE INVESTMENT SERVICES Year 2006 / Number 03 (Consolidated text as of 29/01/2026 – Update XVIII)

Central Bank of the Republic of San Marino Regulation No. 2006-03 on Collective Investment Services (Update XVIII)

INDEX

PART I DEFINITIONS AND GENERAL PROVISIONS ON AUTHORIZATION PROCEDURES ..8 Article 1 – Definitions.................................................................................................................................................................... 8 Article 1 bis – Models. .................................................................................................................................................................11 Article 2 – General provisions on the authorization procedures of the CENTRAL BANK. ............................................11

PART II PROVISIONS ON INVESTMENT MANAGEMENT COMPANIES (SG) ......................................................................................14 TITLE I ACTIVITIES TO BE EXERCISED...........................................................................................................................14 Article 3 – Activities reserved for SGs. ..........................................................................................................................................14 Article 4 – Other activities exercisable............................................................................................................................................14

TITLE II AUTHORIZATION OF SGs................................................................................................................15 Article 5 – Application for authorization. ...................................................................................................................................15 Article 6 – Documents to be attached to the application.....................................................................................................................15 Article 7 – Criteria for drafting the articles of association and the bylaws.....................................................................................15 Article 8 – Minimum share capital. ..........................................................................................................................................16 Article 9 – Activity program and report on the organizational structure........................................................................17 Article 10 – General criteria for the issuance of authorization. .............................................................................................17 Article 11 – Time limits for the decision of the CENTRAL BANK. .................................................................................18 Article 12 – [ABROGATED]........................................................................................................................................................18 Article 13 – Registration in the register of authorized subjects. ..................................................................................................18 Article 14 – Statutory modifications................................................................................................................................................19 Article 15 – Revocation of authorization. ...................................................................................................................................19 Article 16 – Waiver. ...................................................................................................................................................................19

TITLE III SHAREHOLDERS IN THE CAPITAL OF SGs.........................................................................................20 Chapter I General Principles ...........................................................................................................................................................20 Article 17 – Authorization for the acquisition of SIGNIFICANT PARTICIPATIONS in the capital of the SG....................................20 Article 18 – Requirements for shareholders in the capital of SGs.....................................................................................................21 Article 19 – Time limits for the decision of the CENTRAL BANK. .................................................................................21 Article 20 – Communication obligations. ..................................................................................................................................22

Chapter II Requirements for Natural Persons ......................................................................................................................................22 Article 21 – Honesty requirements for natural persons participating in the capital of SGs. ...........................................22 Article 22 – Suitability of natural persons to ensure sound and prudent management. ........................................................24

Chapter III Requirements for Legal Persons ...............................................................................................................................25 Article 23 – Honesty requirements for legal persons. ..............................................................................................25 Article 24 – Suitability of legal persons to ensure sound and prudent management. ..................................................25

TITLE IV MANAGEMENT BODY MEMBERS OF SGs...................................................................................................26 Article 25 – Provisions applicable to management body members of SGs. .............................................................................26 Article 26 – [ABROGATED]........................................................................................................................................................26 Article 27 – [ABROGATED]........................................................................................................................................................26 Article 28 – [ABROGATED]........................................................................................................................................................26 Article 29 – [ABROGATED]........................................................................................................................................................26 Article 30 – [ABROGATED]........................................................................................................................................................26 Article 31 - [ABROGATED].........................................................................................................................................................27 Article 32 – [ABROGATED]........................................................................................................................................................27 Article 33 – [ABROGATED]........................................................................................................................................................27 Article 34 – [ABROGATED]........................................................................................................................................................27

TITLE V PARTICIPATIONS HOLDABLE AND LIMITS ON SAVINGS COLLECTION..................27 Chapter I Participations holdable...............................................................................................................................................27 Article 35 – Limits on participations holdable. .....................................................................................................................27 Article 36 – Application for authorization. .................................................................................................................................27 Article 37 – Communication obligations. ..................................................................................................................................28

Chapter II Limits on savings collection .......................................................................................................................................28 Article 38 – Limits on savings collection. .........................................................................................................................28

TITLE VI CAPITAL ADEQUACY AND RISK CONTAINMENT...............................28 Chapter I Supervisory Capital.................................................................................................................................................28 Article 39 – Calculation of supervisory capital. ....................................................................................................................28 Article 40 – Structure of supervisory capital. ..................................................................................................................28 Article 41 – Treatment of certain elements useful for the calculation of supervisory capital....................................29 Article 42 – Variations in supervisory capital.................................................................................................................30

Chapter II Capital adequacy requirements................................................................................................................................31 Article 43 – Minimum amount of supervisory capital................................................................................................................................31 Article 44 – Capital coverage commensurate with the assets under management of MUTUAL FUNDS and other risks....................................................................................................................................................................................................31

TITLE VII ANNUAL FINANCIAL STATEMENTS .......................................................................................................................32 Article 45 – Duration of the financial year and general principles. .............................................................................................................32

TITLE VIII ADMINISTRATIVE AND ACCOUNTING ORGANIZATION AND INTERNAL CONTROLS.....32 Article 46 – General principles. ......................................................................................................................................................32 Article 47 – Tasks of the board of directors, the head of the executive structure, and the statutory auditors' board...32 Article 48 – Investment process.......................................................................................................................................33 Article 49 – Internal control system...................................................................................................................................33 Article 50 – Information-accounting systems................................................................................................................................35 Article 51 – Relationships between SG-promoter and SG-manager. ..........................................................................................................35 Article 52 – Delegation of corporate functions (outsourcing)...........................................................................................................35 Article 53 – Management delegations. ..................................................................................................................................................36 Article 54 – Relationships with the depositary bank........................................................................................................................37 Article 55 – Relationships with prime brokers. ......................................................................................................................................38 Article 56 – Relationships with the entity responsible for calculating the value of shares............................................................38 Article 57 – Use of consultants..............................................................................................................................................38 Article 58 – Relationships with distributing entities.......................................................................................................................38

TITLE IX MERGER AND SPIN-OFF OPERATIONS OF SGs .............................................................................39 Article 59 – Application for authorization. .................................................................................................................................39 Article 60 – Evaluations by the CENTRAL BANK....................................................................................................................39 Article 61 – Time limits for the decision of the CENTRAL BANK. .................................................................................39 Article 62 – Modifications to the regulations of MUTUAL FUNDS. .........................................................................................................40

TITLE X INFORMATION SUPERVISION.....................................................................................................................40 Article 63 – Relevant operations. ...............................................................................................................................................40 Article 64 – Management body members and board minutes. .........................................................................................................40 Article 65 – Internal control function.......................................................................................................................................41 Article 66 – Communications by the statutory auditors' board..................................................................................................................41 Article 67 – Obligations of the audit firm. .............................................................................................................................................41 Article 68 – Organizational report..........................................................................................................................................41 Article 69 – Exceeding limits placed on the investment activities of MUTUAL FUNDS...............42 Article 69 bis – Periodic supervisory reports..............................................................................................................................................42

TITLE XI INSPECTIVE SUPERVISION.............................................................................................................................42 Article 70 – Inspections.............................................................................................................................................42 Article 71 – Inspection report. .................................................................................................................................................43

PART III PROVISIONS RELATING TO MUTUAL FUNDS..........................44 TITLE I CRITERIA FOR CLASSIFICATION OF MUTUAL FUNDS.........................44 Article 72 – Types of MUTUAL FUNDS. .......................................................................................................................................44 Article 73 – OPEN FUNDS.............................................................................................................................................................44 Article 74 – CLOSED FUNDS. ...........................................................................................................................................................45 Article 75 – FUNDS intended for the general public. .....................................................................................................45 Article 76 – RESERVED FUNDS. .......................................................................................................................................................45 Article 77 – ALTERNATIVE FUNDS.....................................................................................................................................................46 Article 78 – GUARANTEED FUNDS........................................................................................................................................................46

TITLE II CHARACTERISTICS OF THE SINGLE TYPES OF MUTUAL FUNDS INVESTMENT ...................................................................................................................................................................46 Chapter I General Provisions .....................................................................................................................................................46 Article 79 – General prohibitions...................................................................................................................................46 Article 80 – Compliance with prohibitions and limits on investment activities...............................................................................47

Chapter II UCITS III Type Funds ...............................................................................................................................................47 Article 81 – Subscription and redemption methods. ...............................................................................................................47 Article 82 – Potential participants............................................................................................................................................47 Article 83 – Investment object and overall portfolio composition.....................................................48 Article 84 – General prohibitions...................................................................................................................................48 Article 85 – Fragmentation and risk containment rules for investment in financial instruments referred to in Article 83, paragraph 1, letters a) and b). .......................................................................................................................................49 Article 86 – Fragmentation and risk containment rules for investments in financial derivatives. ..............................................................................................................................................................................................................49 Article 87 – Fragmentation and risk containment rules for investments in OTC financial derivatives ....................................................................................................................................................................................................50 Article 88 – Fragmentation and risk containment rules for investments in shares of other OICs................50 Article 89 – Fragmentation and risk containment rules for investments in bank deposits. .................50 Article 90 – Limit on exposure to a single entity resulting from the aggregate investments referred to in Articles 85, 87, 89. .............................................................................................................................................................................51 Article 91 – Fragmentation and risk containment rules for "INDEX FUNDS"................................................51 Article 92 – Rules for calculating limits in the presence of investments in financial derivatives. ....................51 Article 93 – Rules for calculating limits in the presence of investments in structured securities............................................52 Article 94 – Other prudential rules..........................................................................................................................................52

Chapter III Open Mutual Funds of Non-UCITS III Type Intended for the General Public........................................................54 Article 95 – Subscription and redemption methods. ...............................................................................................................54 Article 96 – Potential participants............................................................................................................................................55 Article 97 – Investment object and overall portfolio composition.....................................................55 Article 98 – General prohibitions...................................................................................................................................55 Article 99 – Fragmentation and risk containment rules.......................................................................................55 Article 100 – Other prudential rules........................................................................................................................................56

Chapter IV Closed Mutual Funds Intended for the General Public...................................................................56 Article 101 – Subscription and redemption methods. .............................................................................................................56 Article 102 – Potential participants..........................................................................................................................................56 Article 103 – Investment object and overall portfolio composition...................................................56 Article 104 – General prohibitions.................................................................................................................................56 Article 105 – Fragmentation and risk containment rules for investments in financial instruments and bank deposits .................................................................................................................................................................................................57 Article 106 – Fragmentation and risk containment rules for investments in credits. ..............................57 Article 107 – Fragmentation and risk containment rules for investments in real estate. ................57 Article 108 – Other prudential rules........................................................................................................................................57

Chapter V Reserved Funds for Professional Clients .................