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 .................