Please note, your browser is out of date.
For a good browsing experience we recommend using the latest version of Chrome, Firefox, Safari, Opera or Internet Explorer.

Amendment to the Cape Verdean Legal Framework for Collective Investment Undertakings


The process of public consultation of the “Auditoria Geral de Mercado de Valores Mobiliários (AGMVM)” No. 2/2019 is in progress concerning the proposal to amend the Legal Framework of Collective Investment Undertakings (Decree-Law No. 15/2005, of 14 February). This is part of an extensive review of the regulatory package on investment Funds and Securitisation. Such amendment is undoubtedly timely, considering, on the one hand, the development of the Cape Verdean securities market and, on the other hand, the possibility to gradually affirm Cape Verde in the international financial market.

With these changes, all the authorizing and supervisory powers, will now be centred in the AGMVM. Such a change is paradigmatic in the supervisory model and allows for gains in efficiency and effectiveness in the market.

The great novelty of this proposal is related to the reception, duly adapted to the law and market of Cape Verde, of securities investment companies for small and medium enterprises (“SIPME”) and investment and real estate management companies (“SIGI”).

Both are listed investment companies, fully represented by registered shares, whose minimum capital stock required is 11,000,000$00 (eleven million Cape Verdean escudos). It is important to underline that the shares representing the share capital of these companies must be admitted to trading on the Cape Verdean Stock Exchange within a maximum period of one year after their registration in the AGMVM, being, however, allowed the extension of this period. The other legal aspects of these companies are provided for in the AGMVM Regulation No. 2/2007, of 19 December.

Finally, it should be highlighted that the proposed amendment under analysis implied amendments to AGMVM Regulation No. 1/22006, of 18 October, to AGMVM Regulation No. 2/2007, of 19 December, as well as the Code of Tax Benefits in respect of Collective Investment Undertakings. This broad review proposal was also used to include the AGMVM Regulation on credit securitisation and the AGMVM Regulation on suitability requirements.

Ariana Sanches

Expertise Relacionadas
Finance and Governance
Related Lawyers
Ariana Sanches