Regulatory Alerts2016-12-03
Circular 7/2016 of the Bank of Spain on Accounting Specifics for Banking Foundations and Amendments to Circulars 4/2004 and 1/2013
The Bank of Spain issued Circular 7/2016 to establish specific accounting rules for banking foundations, adapting their financial reporting to reflect their dual nature as non-profit entities with significant financial holdings. The regulation mandates detailed internal identification of reserve funds for foundations exceeding certain ownership thresholds and requires specific disclosures in annual notes regarding management protocols and financial plans. Additionally, it amends Circular 4/2004 to align with EU FINREP standards and updates Circular 1/2013 to improve risk information regarding restructured operations and guarantors.
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