The recent abolition of the principle of specificity of types of securities has made the matter of the identifying title of securities more pressing. CMVM is of the understanding that the requisite truthfulness and objectiveness and other principles specified in Article 7 of the Portuguese Securities Code also apply to the title of securities, insofar as they constitute information which is disclosed to the market. CMVM therefore recommends that issuers and other market agents follow these guidelines when naming securities:

• The identifying title of securities corresponding to one of the types established by law or regulation should be reserved for securities of that type. Thus, for example, certificates are called certificates provided that they comply with any of the types established in the relevant regulation, and the term does not apply in cases where the instrument in question deviates from the central characteristics of this type of security;
• For any security which incorporates the combined structures of elements which are typical of various types of security or which are subject to certain conditions, the specific term for the type of security should be used, followed by the word “structured”, which alerts investors to the fact that the instrument in question is different to the more typical types of securities. Thus, by way of example, the title of structured warrants corresponds to warrants which are subject to early redemption;
• Securities which are totally atypical may be named as structured securities (if they have a combined form) or called “atypical”, without prejudice to other equivalent titles. However, the use of terminology which is only intended as advertising and specific to each issuer should be avoided.