Inquiry Committe on the financial crisis in Spain and the financial assistance program of the Parlament.

Sebastián Albella reported on CNMV’s supervisory functions in connection with the financial crisis related to the mitigation or appropriate management of the effects and highlighted the future role of CNMV in relation to the monitoring and prevention of systemic risks and financial stability.

After recalling the principle on freedom of issuance, Albella referred to the CNMV’s work in relation to the monitoring of the market operation “promoting the dissemination of information on issuers without inconsistencies, foreseeing and sanctioning market abuse and in general, ensuring that the market works in an organised manner”.

Albella also addressed the regulatory and institutional reforms that were brought about by the financial crisis. To that end, he referred to the MiFID II regulatory package, to the new product development and launch requirements, to the knowledge and skill requirements needed for staff working in entities that inform and advise clients and highlighted the new product and service intervention powers: “Both ESMA and the national supervisory bodies are currently working on voting this tool for the first time, … which would affect binary options and certain types of contracts for differences”, he affirmed.

CNMV’s Chairman also referred to the European Regulation on key information documents for Packaged Retail and Insurance-based investment Products (PRIIPs) as well as the effects of derivative instruments reforms to increase transparency and reduce the systemic risks generated by OTC transactions included in the EMIR Regulation.

Sebastián Albella provided detailed information on the role and scope of action of the supervisory body in relation to the situation that ended with Banco Popular’s resolution. He highlighted the implemented and still ongoing supervisory measures related to the supervision of financial information, rules and recommendations for good corporate governance, the supervision of possible market abuse and evolution of quotation and short-selling.

Albella expressed his concern about the development of cryptocurrencies and ICO and announced the creation of a Bank of Spain – CNMV joint working group “aimed at analysing these phenomena and others, analysing if we have enough tools to tackle them and prevent regulatory and supervisory loopholes. We must be extremely vigilant”, he stated.

CNMV’s Chairman stressed the importance for society and public interests of a strong and efficient supervision. He insisted on the relevance of financial education and need for financial institutions to integrate in their corporate culture fair treatment for investors and seek to align their interests with those of their clients. “We are determined to convey the message not only with words but also by integrating this into our supervisory actions”, he affirmed.

You can watch the video of the speech by clicking on the following link: