ANDORRA Law and Practice Contributed by: Miguel Cases and Laura Nieto, Cases & Lacambra
Cases & Lacambra C/ Manuel Cerqueda i Escaler 3-5 AD 700 Escaldes-Engordany Principality of Andorra Tel: +376 728 001 Email: andorra@caseslacambra.com Web: www.caseslacambra.com
1. Legal Framework 1.1 Key Laws and Regulations
within the Andorran financial system, dated 3 June 2010; • Law 7/2013 on the legal regime of the enti - ties operating within the Andorran financial system and other provisions regulating the exercise of financial activities in the Principal - ity of Andorra, dated 9 May 2013; • Law 7/2024, of May 27, on the organisation and functioning of the operative entities of the financial system and market abuse; • Law 10/2008 regulating Andorran collec - tive investment undertakings, dated 12 June 2008; • Law 10/2013 of the Andorran Financial Authority (AFA), dated 23 May 2013; • Law 7/2021 of 29 April, regulating the Restructuring and Resolution of Banking Enti - ties and Investment Entities; • the Memorandum of Understanding signed between Andorra and Spain on 4 April 2011; • Law 20/2018 of 13 September, regulating the Andorran Guarantee Deposit Fund and Andorran Investment Guarantee System (the FAGADI Law); • Law regulating the disciplinary regime of the financial system, dated 27 November 1997 (Disciplinary Law);
The financial industry of the Principality of Andorra (“Andorra”) has historically been a key contributor to the domestic economy. In turn, the banking sector is the cornerstone of the Andorran financial system, which represents roughly 13% of the Andorran gross domestic product and almost 4% of Andorra’s wage earn - ers (according to the most recent data published by the Andorran Banking Association). Due to the country’s proximity to neighbouring European countries, along with the signature of the Monetary Agreement in 2011 between Andorra and the EU, the Andorran legal frame - work is aligned with EU legal initiatives in terms of banking regulation – namely solvency, capital requirements, supervision, investor protection and anti-money laundering and terrorist financ - ing. The most relevant Andorran regulations govern - ing the banking sector are as follows: • Law 35/2010 on the legal regime for author - ising the creation of new operating entities
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