The most employed types of investment funds in Italy are the collective investment funds because they can be organized in various ways. Among these foreign professional and qualified investors choose real estate funds, pension funds, guaranteed and index funds. These types of structures are preferred because of the rapid yielding and easy set up procedures they imply. Representative for these two points of view are Italian index funds.
Our company formation agents in Italy can offer information on the laws related to opening investment funds.
Index funds fall under the category of collective investment schemes in Italy and are funds which follow, or better said, track a predefined index. This type of fund will usually have a portfolio made up of financial instruments which match international indexes such as Standard and Poor’s 500 and Dow Jones. One of the greatest advantage foreign investors will have when setting up an index fund Italy is that they will be required to follow different regulations as these types of investment vehicles must respect the same regulations all over the world. Index funds are also considered passively managed funds. Mutual funds and exchange-traded funds are the most common types of index funds in Italy.
In order to establish an index fund in Italy, an investor must register a joint stock company with the Trade Register. The minimum amount required to set up a company for investment purposes is 1 million euros. The Italian company will act as the manager of the index fund. After the company incorporation process is completed, the company must obtain the approval of the Italian National Bank and the Securities and Exchange Commission. The fund must also appoint a custodian, which is usually a bank, which will keep its financial instruments and the capital. It should also be noted that the custodian must comply with certain regulations imposed by the National Bank. Index funds are also subject to restrictions.
For complete information on the rules applicable to index funds in Italy, please contact us. Our company incorporation agents in Italy can also help you with the registration of the company for investment purposes.