VATICAN CITY
Vatican Insider
Francis has said “no” to an initiative put forward by the President of the Institute for the Works of Religion (IOR) and approved by the Institute’s board, for the creation of a SICAV investment fund in Luxembourg for the management of deposits
ANDREA TORNIELLI
VATICAN CITY
The decision had been given the green light by the IOR’s lay Board of Superintendence. But it was halted first by the body’s supervisory Commission of Cardinals and then by the Pope himself. The Institute for the Works of Religion (IOR) will not have its own SICAV – (Société d’Investissement à Capital Variable) a type of investment fund that has a variable share capital. The IOR’s president, Jean-Baptiste de Franssu had wanted to set up this fund in Luxembourg. However, Francis has, since the very start of his pontificate, opposed the IOR’s tendency to behave like an investment bankin some cases. The reform of the Vatican’s finances also means making choices of this kind, in order to underline the unique nature of the “Vatican bank” and ensure that it remains true to the original purpose for which it was created.
The point of the setting up of a SICAV investment fund was to help IOR managers manage a portion of the Institute’s deposits. Luxembourg was chosen as the area where operations would take place as it is in the Eurozone but also offers tax concessions. Vatican Insider has learnt that the decision was taken and formalised by the IOR’s Board of Superintendence headed by de Franssu. But when the project was presented to the Commission of Cardinals headed by Spanish cardinal Santos Abril y Castelló, it was discussed and was eventually handed over to the Pope who has been keeping a close eye on key decisions regarding the activities of the Institute.
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