New legislation that transfers to the Portuguese Securities Market Committee (CMVM) the powers of prudential supervision of investment management companies was published
Banking and Finance Alert
It was published on 24 September 2019 Decree-Law no 144/2019 which transfers from the Bank of Portugal to the Securities Market Committee (CMVM) the powers of prudential supervision of investment fund management companies and credit securitisation fund management companies (SGFTC).
Prudential supervision is carried out in order to preserve the solvency and liquidity of the institutions, prevent own and systemic risks and assess the suitability and other requirements of managers of financial companies.
The CMVM, which is already responsible for the supervision of investment funds and credit securitisation funds, is now also responsible for the prudential supervision of their management companies. Until now, this function was exercised by the Bank of Portugal.
Market agents now have a single supervisor - the CMVM.
The Legal Framework for Venture Capital, Social Entrepreneurship and Specialised Investment is also amended, with the creation of credit funds to complement the financing of Portuguese companies.
It is expected that the credit funds will improve the financing of the economy (through the granting of credits to companies).
This decree-law, which enters into force on 1 January 2020, by transferring prudential supervision powers over management companies from Bank of Portugal to CMVM, ensures greater simplicity and speed in the creation of management companies in our country.
At the same time, the role of the capital market in the financing of companies is strengthened.