Variable Capital Investment Companies, also known as Sicavs, have their days numbered. The National Securities Market Commission (CNMV) has received in recent days a barrage of notifications from these companies with the intention of dissolving and liquidating after the entry into force on January 1 of the new tax regime. The new regulatory framework, included in the law on measures to prevent and combat tax fraud, establishes new conditions for these companies to continue paying taxes 1% corporate tax.
Thus, it will be required that the Sicavs have 100 partners with an investment minimum of at least 2,500 euros each. In the event that they do not meet this condition, they will have to pay taxes at 25%. The Government included a transitory regime during this year so that the Sicavs could agree its dissolution and liquidation without tax costs. The supervisor has given a deadline until next Monday, January 31, for these companies to communicate their decision, and during the last few days, has received a barrage of relevant events, in which the Sicavs propose to their respective boards of shareholders its dissolution and liquidation.
According to data from the consulting firm VDOS, as of January 26, there were registered in Spain a total of 2,386 Sicavs, with managed assets of around 28,433 million euros. Others such as Togoinvest or Grupo de Inversiones Gestión 10 have already agreed this month to voluntarily renounce the status of Sicav and have requested its removal from the administrative registry of the CNMV, as reported. Conversely, Few have been the ones have communicated their decision to continue maintaining their Sicav status, as in the case of Kruger Selección or Edumone, which, as they have explained, cwill comply with the regulations to continue paying taxes 1% in corporate tax.
By groups, Banco Santander stands out, since its manager has a total of 399 Sicavs, with managed assets of almost 5,000 million euros, according to Inverco year-end data. It is followed by Bankinter, with 353 Sicavs and a heritage of about 2,900 million euros, and BBVA, with 262 companies and also, just over 2,907 million. After the approval of the norm, the majority of analysts foresees that between a 80% and 90% of the Sicavs will disappear. In this sense, the director of Patrimonial Advice of A&G, Francisco González, assured this same week that these societies “are dead”, and calculated that within two years there will only be around 200 left in Spain, which would mean the dissolution and Liquidation of 90% of these vehicles.
Also, the Managing Partner of Wealth Solutions and President of Finletic, Rafael Juan y Seva, explained that after years of warnings about changes important in the regulation, the new regulation on Sicavs is already a fact, and that “it is a reasonable solution, above all because it offers an exit without fiscal toll“. However, in his opinion, a large majority of Sicavs will decide to dissolve, since their degree of shareholder concentration is high. Likewise, he considers that with the dissolution of these companies, investment funds will be the great beneficiaries, since they will be the main recipients of the heritage. On the opposite side, he warns that there will be affected figures, and in the expert’s opinion, “one of the main victims” will be the Alternative Stock Market (MAB), now called BME Growth, where this type of instrument was listed.