On 28 December past, the Official State Gazette published Royal Decree 1464/2018, of 21 December, implementing the consolidated text of the Securities Market Act and representing the last phase of the transposition of MiFID II into Spanish law.

The regulatory principles on which this royal decree is based, and which derive from Royal Decree-Law 21/2017, of 29 December, and Royal Decree-Law 14/2018, of 28 September, are as follows:

a) Ensuring high levels of investor protection in financial products, especially for retail investors.

b) Improving the organisational structure of regulated markets.

c) Enhancing the organisational structure and corporate governance of companies.

d) Increasing the security and efficiency of securities markets.

The new legal text includes numerous developments in the regulation of:

– Investment Firms (IFs) and other entities providing investment services. Their legal system is developed in regulatory terms and matters such as authorisation, activity, requirements for internal organisation and protection of clients’ assets, among others, have been regulated. In addition, the obligations applicable to IFs in matters of corporate governance have been developed and include requirements for algorithmic trading and direct electronic access. An obligation has also been established to include in IFs’ registers telephone conversations and electronic communications related to the execution of own-account orders and to the provision of the service of reception, transmission and execution of orders. The new text also addresses issues related to rules of conduct, product supervision and control, incentives and reporting obligations for clients and potential clients.

– Regulated markets: regulations have been developed on authorisation, governing bodies, members, requirements for admission to trading, position limits, position reporting, etc.

The new Royal Decree also includes developments related to Collective Investment Schemes (CISs) and financial advisory companies.

See the full text:

Royal Decree 1464/2018, of 21 December, implementing the consolidated text of the Securities Market Act, approved by Royal Legislative Decree 4/2015, of 23 October, and Royal Decree-Law 21/2017, of 29 December, on urgent measures for the adaptation of Spanish law to European Union regulations on the securities market, and partially amending Royal Decree 217/2008, of 15 February, on the legal regime for investment firms and other entities providing investment services, as well as partially amending the Regulation of Law 35/2003, of 4 November, on Collective Investment Schemes, approved by Royal Decree 1309/2005, of 4 November, and other royal decrees on the securities market.

And the section of the CNMV website on MiFID II