The CNMV has published on its website three new questions and answers documents on different matters, two of them updates of previously published documents:
- A new questions and answers document regarding the Resolution of 11 July 2023 of the CNMV, on product intervention measures relating to financial contracts for differences and other leveraged products.
- An update of the questions and answers document on the implementation of the MiFID II Directive.
- An update of the questions and answers document on the regulation of CISs, venture capital firms and other collective investment vehicles.
In relation to the document relating to the Resolution of 11 July 2023:
- Regarding the first part of the Resolution, relating to measures on CFDs, the most relevant questions refer to: the scope of the prohibition of sponsorships and brand advertising and when CFDs may or not be considered a very small part of the activity of a firm. In the case of firms subject to this prohibition, it is clarified what type of information could be distributed for being of a legal or pre-contractual nature and under what exceptional circumstances advertising of specific products other than CFDs could be performed.
- Regarding the second part of the Resolution, relating to other leveraged products, the questions basically clarify the scope of application, including OTC derivatives, may they have a hedging purpose or not; how the initial margin is determined and how the close position protection is applied, in both cases with the possibility of considering the global position of the client as long as the firm has the appropriate tools and systems to measure and control the risks and the client is informed about and accepts the approach.
As for the MiFID document, three new questions have been added in the sections on incentives, conflicts of interest and the costs and expenses information, relating respectively to the placement or underwriting fees; to the placement and intermediation fees in the provision of the discretionary portfolio management service; and to the determination of fair value for the purposes of the calculation of implicit costs.
In the CISs and Venture Capital Firms block, one question has been removed to account for a regulatory change while another three questions have been adapted, two of these due to regulatory modifications and the remaining one to account for the practice applied.