Nevertheless, with the reform of the CódMVM by Decree-Law No. 486/99, of 13th November, which approved the Securities Code (CódVM), the Statute of the CMVM became a separate governing document – Decree-Law No. 473/99, of 8th November. Although said option has not changed the nature and duties of the Supervisory Board of the CMVM, which continued as the Supervisory Board of the CMVM in the same form as it was established in 1991, the truth is that its members' term of office stopped coinciding with that of the members of the Executive Board, passing from five to three years. There were improvements to several detailed aspects concerning the activity and status of its members, who became subject to the obligation of disposing shares whereof they were holders as at the date of their appointment or to declare, in writing, the existence thereof, only being allowed to dispose of same with the authorisation of the Minister of Finance.

On the other hand, with the coming into force of Decree-Law No. 222/99, of 22nd June, which established the Investor Compensation Scheme (Sistema de Indemnização aos Investidores - SII), a public law legal person with administrative and financial autonomy, the task of monitoring the activity of the SII was assigned to the CMVM's Supervisory Board, namely, the legality, and issue of a statement of opinion on the SII's Annual Report and Financial Statements.

This means that, since 1999, and regardless of the identity of the members, the CMVM's Supervisory Board is, in fact, a board of the CMVM and a board of the  SII, performing identical tasks of monitoring and control in both.

This denotes that the rules regarding the functioning of the Supervisory Board, to a large extent,  may be common with the CMVM and the SII, which enables the Supervisory Board to approve internal regulations considered to be necessary for carrying out its activity, despite the fact that same does not imply the carrying out of powers belonging to the Ministry of Finance or other boards of the CMVM or interference in matters reserved for administrative law or regulation.

In accordance therewith and with the objective of expediting the respective tasks, clearly identifying all the tasks for which it is responsible and the compliance thereof, the Supervisory Board of the CMVM, appointed by Order of the Secretary of State for Treasury and Finances No. 9265/2006, of 3rd April 2006, published in the Official Gazette, II Series, No. 81, of 26th April 2006, approved the current Internal Regulation, pursuant to the provisions of Article 18/1 CMVM Statute:

Chapter I

General Provisions

Article 1

(Definition)

The Supervisory Board is the board that oversees and supervises the finances of the CMVM and SII.

Article 2

(Aim)

1. Within the context of supervising the CMVM, the aim of the Supervisory Board is to:

Monitor the accounting procedures of the CMVM and its compliance with legal provisions and internal rules and procedures applicable to the budget, accounting and treasury, and inform the Executive Board of the CMVM of any discrepancies or anomalies found.
Considers any matter within its jurisdiction that is referred by the Executive Board of the CMVM.

2. Within the context of supervising the SII, the aim of the Supervisory Board is to:

• Monitor the functioning of the SII and supervise compliance with the applicable laws and regulations;
• Issue opinions on the Annual Reports and financial statements of the SII.

Article 3

(Powers)

In pursuit of its aims, the Supervisory Board may:

• Request from the Executive Board and the departments of the CMVM, any information, clarifications and details necessary for the good performance of its functions;
• Encourage meetings with the Executive Board for the examination of issues within the context of its powers, whenever quality or significance so justifies;
• Request periodic or random meetings with the Executive Committee of the SII;
• Request the presence at the meetings of any member of the Executive Committee and any head of the departments of the SII;
• Refer to the Executive Committee of the SII any issue which it deems should be considered by same;
• Consider any matter, which is referred by the Executive Committee of the SII.

Article 4

(Meetings)

1. The Supervisory Board normally meets at least once a month and extraordinarily when so convened by the respective Chairperson, on his own initiative or at the request of any member of the Supervisory Board, Chairman of the Executive Board of the CMVM or the Chairman of the Executive Committee of the SII.

2. The meetings should be convened in writing, with an agenda set out by the respective Chairman, at least seven days beforehand, except when dealing with normal meetings to be held on specific dates, in which case it is exempted from said notice convening the meeting.

3. The Supervisory Board may also meet extraordinarily, without compliance with any prior formalities, provided all the members are present and agree to decide on said terms.

4. The minutes of each meeting of the Supervisory Board shall be drawn up and signed by all the members present.

Chapter II

Supervision of the CMVM

Article 5

(Functions)

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