Managers' ethical values and good governance constitute, on the one hand, elements that prevent conflicts of interest and, on the other, factors that safeguard the financial system and the investor interests.
Compliance with the requirements of high professional competence, availability and irreproachable ethics of the entities' managers that are essential for the adequate performance of the function, is an essential component of the quality of regulation and financial supervision, contributing to investor protection and market development.
The adequacy assessment which verifies the suitability to exercise regulated functions or to hold qualified holdings in regulated entities, is carried out by fulfilling the requirements of suitability, experience, availability, and independence, depending on the specific regulatory framework.
CMVM competences and guidelines
The CMVM's competences in matters of adequacy assessment have significantly expanded in recent years, namely with the attribution of prudential supervision competences to real estate valuers (2015), auditors (2016), management entities of crowdfunding platforms (2018) and managing entities of collective investment schemes and securitisation funds (2020).
In order to promote a more agile and predictable performance and to provide quality public service, and with the aim of continuing to strengthen the standards of transparency with supervised bodies, investors, and society in general, the CMVM published in September 2020, guidelines on the assessment of suitability for the exercise of regulated functions and holders of qualifying holdings ("Guidelines").
The Guidelines which were drawn up with the reflection of the market itself through the public consultation held between March and April 2020, apply to entities over which the CMVM has the respective prudential supervision and auditors, namely:
Covered entities (*) |
Management companies of collective investment undertakingsSelf-managed collective investment companiesVenture capital fund management companiesSelf-managed venture capital investment companiesVenture capital companiesVenture capital investorsQualified venture capital fund managersSocial entrepreneurship companiesQualified social entrepreneurship fund managersSelf-managed specialised alternative investment companiesEuropean Union long-term investment funds with the designation 'ELTIF' self-managedSecuritisation fund management companiesCredit securitisation companiesManaging entities of electronic crowdfunding platformsSelf-employed investment consultantsAuditors
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(*) For more detailed information on covered entities and excluded by the scope of the Guidelines, see section A of Appendix I of the document (pages 24 to 26).
Despite their universal vocation, the Guidelines apply, at this stage, only apply at this stage, to the entities identified above, whose legal framework, in line with the best international practices, does not have a rigid implementation and densification of the adequacy requirements and the assessment process.
Nevertheless, it is desirable that in the long term, the application scope of the Guidelines may be extended to other entities over which the CMVM already has powers of prudential supervision, but whose legal framework still proceeds directly to the implementation and densification of the requirements of adequacy and of the assessment process.
The Guidelines aim to provide a guide to assessment procedures for the adequacy of the CMVM's competence and to be a practical and evolutionary instrument, allowing the necessary updates to reflect new developments, including those of a legal and/or regulatory nature at an international level.
Additional information:
Relevant documents:
