|Jaime de la Torre Viscasillas|
Within the next three months, the Fund for Orderly Bank Restructuring (FROB) will incorporate an asset management company named Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria, which will be owned by the FROB, and financial entities (public participation must be less than 50%). The purpose of this company will be the tenancy, management, acquisition and transfer of troubled assets, and it will be authorised to issue obligations or other debt instruments (with no limits on the amounts).
Further regulatory development will identify the entities that must transfer their troubled assets to the asset management company and the type of assets that must be transferred. The FROB may require these assets to be transferred to any credit entity and not only to those under restructuring or resolution procedures.
It has also been approved that all or part of the asset management company's assets could be transferred to a new type of fund that remains to be regulated. Therefore further regulation is needed in order to ascertain how this new type of trust would work, be created and managed, and the tax regime to which it would be subject.
Jaime de la Torre Viscasillas