Credit institutions shall provide advance notice of at least three months to SMEs whose funding is to be canceled or reduced
MADRID, 3 Oct (IRIN) –
Retail investors can invest up to $ 3,000 annually in a draft ‘crowdfunding’ and a maximum of 10,000 euros in all platforms, according to Bill Encouraging Corporate Financing approved Friday by the Council of Ministers.
In a press conference, Economy Minister Luis de Guindos, said that the National Securities Market Commission (CNMV), together with the Bank of Spain, will be responsible for overseeing the activity when this consists in brokering loans.
The new regulations distinguish between accredited investors and non-accredited investors. The first are the institutional, companies that exceed certain levels of active (1 million euros), revenues (2 million) or equity (300,000 euros) and all natural or legal persons whose incomes exceed 50,000 euros a year or have a higher equity to 100,000 euros and expressly request this treatment.
The Government has established that accredited investors may invest without limit in such projects, while non-accredited, in character retailer, will have annual limits on investment (3,000 euros and 10,000 euros per project in the range of platforms) and shall require the handwritten signature which manifest themselves before purchasing any payment commitment, being warned of the risks of this type investment.
The government also seeks to ensure transparency, so that the new regulation will ensure that all investors have access to sufficient information about aspects such as the platform, the developer and the characteristics of the vehicle used to attract funding, as well as all the risks involved in investing in such projects.
notices of Cls
In addition, the standard will establish the obligation of credit institutions to provide advance notice of at least three months to SMEs whose funding is to be canceled or significantly reduced (by 35% or more).
The aim of this As these companies is to facilitate the necessary adjustments to reorient their funding sources quickly. Along with the notice, is given to SMEs the right to obtain information on the entity’s financial position, payment history, abstract, credit rating, among other things, and your credit rating in accordance with the specific methodology to develop SMEs the Bank of Spain (‘rating SME’).
This application must be served within 10 business days and for free. They may request this information at any time and in an unconditional way, request to be addressed within 15 days and reduced cost.
mutual guarantee
The new rule also establishes an “effective, fast and flexible” arrangements for anything having to do with mutual guarantees. Therefore includes the possibility that the reguarantee of Cersa activate at the first breach and strengthen the corporate governance of mutual guarantee.
A new legal framework also provides for financial establishments credit, they have stopped considering lenders in Solvency Act. These entities will continue under the supervision of the Bank of Spain to continue to be sources of funding for both families and business activities of ‘leasing’ and ‘factoring’.
The minister pointed out that the reform bill regulation of securitization, which are close to 235,000 million euros in Spain, to conform with European legislation. In this regard, he indicated that promote the underlying asset of the same (usually mortgages) are loans to SMEs.
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