Circular 1/2018 on warnings regarding financial instruments aimed at increasing the protection of retail investors and improving transparency in the distribution of financial instruments has today been published in the Official State Gazette.
The Circular obliges credit institutions and investment firms to warn their clients about the following:
- Highly complex instruments that can generally be difficult for retail investors to understand.
- Debt instruments that may potentially be affected by an internal recapitalisation exercise.
- The significant differences between the effective amount and the estimated current value of the product, a situation in which the inherent costs for the investor are highlighted.