and foreign businessmen interested in the investment market available in Italy
can set up different types of investment vehicles
. One of the ways in which investors can start a business in the Italian investment market
refers to the retail funds
, which are entities that must be approved by the local regulator. Retail funds
are addressed to non-professional investors
and the legislation applicable to them, on which our team of lawyers in Italy
can provide more details, differs greatly than the one for other categories of investment funds
, so businessmen should first analyse the local regulations.
Types of retail funds in Italy
Retail funds are comprised of two main categories, established in accordance with the rights given to the investors to issue shares.
The legislation prescribes open-ended funds
, which do not impose restriction in this sense, and closed-ended funds
, in which the investors are limited in their rights referring to the issuance of shares
Open-ended funds can be set up as one of the following:
• undertakings for collective investments in transferable securities (UCITS);
• open-ended alternative investment funds (AIFs).
are regulated by the UCITS IV Directive
imposed under the European Union’s legislation, while the open-ended AIFs
fall under the category of Alternative Investment Fund Managers (AIMF) Directive
. Our team of attorneys in Italy
can offer an in-depth presentation on the above mentioned laws.
Further on, the retail funds can also be set up as closed-ended funds. They are registered following the regulations available under the AIMF Directive, with the main difference that the fund can issue shares or units only in certain conditions.
The main legislation applicable to Italian retail funds
set up as retail funds
) are regulated by the following institutions:
• the Bank of Italy;
• the Italian Securities and Exchange Commission.
The main legislation in this sense is the Legislative Decree no. 58 and the Bank of Italy Act.