Collective Investment Management Companies Framework dossier/collective_investme… · Collective...
13
1 Collective Investment Management Companies Framework Guide to assist through the process for authorisation and registration in Portugal
Transcript of Collective Investment Management Companies Framework dossier/collective_investme… · Collective...
1
Collective Investment Management Companies Framework
Guide to assist through the process for authorisationand registration in Portugal
Collective Investment Management Companies Framework
Supervision model in Portugal
Regulatory landscape
1
1
2
Licensing procedures3
Our supervision model is not based on twin peaks model. We have a three entities structure.
Supervision model in Portugal1
2
Supervisionauthority
Scope ofsupervision
Securities marketand financial instruments
Credit institutions,financial companies, payment institutions,e-money institutions
Insurance andreinsurance
Market segment Securities market Banking Insurance
Conselho Nacional de Supervisores Financeiros – CNSF CNSF aims to promote the coordination of the activity of the
financial regulators
Banco de Portugal (BdP)
Supervision model in Portugal1
❖ Two core missions: to maintain price stability and to promote the stability of thefinancial system.
❖ As national supervisory authority, BdP is part of the Eurosystem and the EuropeanSystem of Central Banks, the Single Supervisory Mechanism and the SingleResolution Mechanism.
❖ Regulates and supervises credit institutions, financial companies, paymentinstitutions and electronic money institutions to ensure that the funds they wereentrusted to hold are secure. It applies preventive measures and sanctions.
❖ Prepares the decision to grant or refuse authorisation concerning creditinstitutions, within the framework of the Single Supervisory Mechanism. It is thecompetent authority to grant or refuse authorisation regarding financialcompanies, payment institutions and electronic money institutions.
3
Comissão do Mercado de Valores Mobiliários (CMVM)
Supervision model in Portugal1
❖ CMVM’s mission is to protect the investor, ensure market integrity and marketdevelopment.
❖ Regulates and supervises collective investment management companies,investment firms, securities issuers, independent investment advisors, investmentfunds, venture capital funds and companies, securitization funds and companies,crowdfunding platforms and auditors.
❖ It is the competent authority to grant or refuse authorisation of investmentadvice firms, independent investment advisors, investment funds, venture capitalfunds and companies, securitization funds and companies, crowdfundingplatforms as well as registration of auditors and investment firms.
❖ Today´s cross border activities demand a stronger cooperation within theEuropean System of Financial Supervision (ESMA, EBA, EIOPA, ESRB) but also withother international organisations namely IOSCO.
4
Regulatory framework
Regulatory landscape2
COLLECTIVE INVESTMENT SCHEMES
UCITS
AIFMD
i.a. CVM & RGOIC *
INVESTMENT SERVICES AND
ACTIVITIES
MIFID II
MIFIR
i.a. CVM & RGICSF *
5
* Portuguese Securities Code (CVM), General Regime Collective Investment Schemes (RGOIC), LegalFramework of Credit Institutions and Financial Companies (RGICSF)
Licensing requirements
Regulatory landscape2
Type of entities Initial capital requirements
Collective InvestmentSchemes Management Companies
• Securities investment fund management company
• Real estate investment fund management company
€ 125 000
€ 125 000
Investment firms • Dealers
• Brokers
• Wealth management companies
• Investment advice firms
€ 3 500 000
€ 350 000
€ 250 000
€50 000
6
Licensing requirements
Regulatory landscape2
❖ Detailed and sound business plan, including compliance with prudentialrequirements;
❖ Adequate organisational structure;
❖ Compliance with fit and proper criteria (management body and qualifyingholdings);
❖ Effective anti-money laundering system and controls;
❖ Head office and effective management in Portugal;
❖ Robust governance arrangements and adequate internal control mechanisms inplace;
❖ Effective processes in place to identify, manage, monitor and report risks;
❖ Remuneration policies and practices in place promoting, and consistent with, asound and prudent risk management. 7
Licensing procedures3
8
On-site validation by both authorities in
order to verify if theconditions mentioned in the authorisation
process are effectively
implemented.
Assessment of thecompliance
with all authorisationconditions laid down in the
relevant EU legislation.
BdPRegistration
BdPAuthorisation
CMVMRegistration
Assessment of completeness of the application for
registration based on the conditions laid down in the
relevant law which includes an on-site validation together
with BdP.
BdP and CMVM joint action
Licensing procedures
Requirements and procedures in English on both websites
Single contact pointA single email address can be used to contact both authorities, either to submit applications or to request information: [email protected] or [email protected]
Electronic submission of application and supporting documentation
TimeframeUp to 3 months for authorisation by BdP, 3 months for registration byBdP and 30 business days for CMVM´s registration, providing thatmandatory information has been fully submitted and the requirementsare met.
3
9
BdP and CMVM are determined to contribute to promote efficient licensing procedures for collective investment management companies.
All equivalent documents approved by other EU regulators will beconsidered, namely on suitability and conduct of business rulesNevertheless BdP and CMVM must perform their own assessment and makean autonomous final decision.
English languageApplication and additional information will be accepted in English. Bothteams will notify, provide guidance and support in English through theentire process and after the authorisation.
Support and guidanceOnce a request for information or an application is made, the relevantauthority will promptly reply indicating the person responsible for theprocess and its contacts.
Licensing procedures3
10
Licensing procedures3
11
When submitted via the email addressesreferred to previously, applications will be
simultaneously received by BdP and CMVM– assessment done in parallel
Articulation between both entities throughout the entire process
to shorten the timeframe to final decision
Contact points can ensure updatedinformation on process status
CMVMBanco
de Portugal
13
Collective Investment Management Companies Framework
Guide to assist through the process for authorisationand registration in Portugal
