The CMVM welcomes and
confirms its alignment in acting with the recommendations of the European
Systemic Risk Board (ESRB) for ESMA and the competent national authorities
regarding measures to strengthen European articulation for combating and
preventing the impacts of the coronavirus pandemic on financial stability.
The CMVM has been
thoroughly monitoring the impacts of the pandemic on the national and
international asset management industry, particularly on instruments with
greater exposure to corporate debt and the real estate market.
In this regard, the
reporting requirements were reinforced and the CMVM maintains a daily
monitoring of the relevant developments, as well as open communication channels
with the various market entities and with ESMA and IOSCO. This monitoring is
additional to the ongoing analysis of asset valuation practices by investment
fund management companies and exposure to corporate debt, particularly the one
with the highest exposure to risk, and to the real estate market.
The CMVM is committed to
initiating, as soon as possible, within the scope of ESMA and in broader
articulation with other authorities, the harmonised analysis at European level of
the resilience of the two segments of the investment fund industry, as well as
the impacts on the national financial system of potential consequences of credit
ratings downgrades for corporate debt.
Given the severity of
the shock and while, emphasising the uncertainty and challenges that still lie
ahead, the CMVM highlights the resilience of the national market to the initial
shock of the pandemic to date, as well as the professional response offered by
the investment fund industry.
The CMVM's approach to
the consequences of the pandemic values four dimensions in particular: the quality of
market information and investor protection; monitoring and weighing short and
medium-term operational and financial risks; the careful assessment of
regulatory and reporting duties in the current context; and the issuance of
guidelines on best practices, which value medium and long-term sustainability
principles and sound corporate governance.
CMVM’s response to the Covid-19 pandemic can be found on the page
created for that purpose on the CMVM website.
