Confusion reigns in spain over securitisation rules

A three-pronged law change passed at the back end of 2005 was meant to open up Spain's securitisation market but new issuance has not been forthcoming. Hardeep Dhillon reports on what's blocking the pipeline

Three pieces of legislation passed last year were intended to set the wheels in motion to promote further growth, innovation and new asset classes in the Spanish securitisation market. Ministerial Order EHA/3536/2005, passed in November 2005, governs future flow transactions; Royal Decree 1309/2005, introduced the same month, gives investment firms greater flexibility to buy synthetic products; and Law 23/2005, also introduced in November 2005, exempts non-residents from withholding tax if they