Spain authorises securities lending for collective investment schemes
20 October 2025 Spain
Image: rudi1976/stock.adobe.com
The Spanish government has published a new ministerial order which authorises the lending of certain securities and assets for collective investment schemes (CISs).
Spanish Undertakings for Collective Investment in Transferable Íø±¬³Ô¹Ï funds have traditionally been prohibited from engaging in securities lending.
It is a notion that has been encouraged by the market over the past 15 years, which previously left Spain as the only country in Europe without this possibility.
The new regulation now allows CISs to offer higher returns to their participants and shareholders, without compromising investor protection and the security of their investments.
The order develops the rules applicable to securities lending transactions, establishes a guarantee regime for such transactions, imposes internal control obligations for management companies and investment companies.
It also includes the obligations of the depositaries of lending institutions, who must ensure compliance with the rules applicable to securities lending.
According to the Ministry of Economy, Trade and Enterprise, the objective of maximising the profitability of CIS through the regulation of securities lending must be combined with sufficient protection for participants and shareholders.
For this reason, the government has introduced a series of rules, requirements, and limits, which constitute the minimum and essential safeguards to ensure that this practice is carried out appropriately, guaranteeing transparency and risk control for the benefit of investors.
Collective investment institutions, under the conditions established in the order, may resort to securities lending transactions, provided that the purpose of resorting to these transactions is to achieve more efficient management of the portfolio in accordance with the criteria.
Spanish Undertakings for Collective Investment in Transferable Íø±¬³Ô¹Ï funds have traditionally been prohibited from engaging in securities lending.
It is a notion that has been encouraged by the market over the past 15 years, which previously left Spain as the only country in Europe without this possibility.
The new regulation now allows CISs to offer higher returns to their participants and shareholders, without compromising investor protection and the security of their investments.
The order develops the rules applicable to securities lending transactions, establishes a guarantee regime for such transactions, imposes internal control obligations for management companies and investment companies.
It also includes the obligations of the depositaries of lending institutions, who must ensure compliance with the rules applicable to securities lending.
According to the Ministry of Economy, Trade and Enterprise, the objective of maximising the profitability of CIS through the regulation of securities lending must be combined with sufficient protection for participants and shareholders.
For this reason, the government has introduced a series of rules, requirements, and limits, which constitute the minimum and essential safeguards to ensure that this practice is carried out appropriately, guaranteeing transparency and risk control for the benefit of investors.
Collective investment institutions, under the conditions established in the order, may resort to securities lending transactions, provided that the purpose of resorting to these transactions is to achieve more efficient management of the portfolio in accordance with the criteria.
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