Expatica Spain- Rarely has the approval of a financial product in Spain generated such controversy as the decision to allow sales of domestic hedge funds.
After lengthy and intense discussion involving politicians, regulators and those working in the financial sector, the first such fund was registered with the stock market commission on November 8, 2006. But one year on, demand for hedge funds has fallen short of expectations.
Spanish regulators were cautious about allowing new funds aimed at small investors after a Madrid-based brokerage collapsed in 2001 with more than €100 million in losses. Asset managers who wanted to sell hedge funds faced the extra costs of setting up foreign units. The minimum investment in a hedge fund was set at €
50,000.
