How the CNMV acts with regard to the market participants

How the CNMV acts in the authorisation and registration of firms providing services and with regard to investment products:

• Instruction, information and processing of case files for the authorisation of Investment Firms, for registration and de-registration in the CNMV’s Registers, those related to the revocation of authorisations, as well as those related to subsequent amendments to these firms.
• Instruction, information and processing of case files for the authorisation of Crowdfunding Platforms, for registration and de-registration in the CNMV’s Registers, those related to the renewal of authorisations, as well as those related to subsequent amendments to these platforms.
• Instruction, information and processing of case files for the authorisation of Collective Investment Scheme Management Companies, Closed-Ended Collective Investment Scheme Management Companies and Asset Securitisation Fund Management Companies, for registration and de-registration in the CNMV’s Registers, those related to the revocation of authorisations, as well as those related to subsequent amendments of these companies.
• Instruction, information and processing of case files for the authorisation of Collective Investment Schemes (Funds and Open-Ended Collective Investment Schemes), Venture Capital Schemes and other Closed-Ended Collective Investment Schemes, for registration and de-registration in the CNMV’s Registers, those related to the revocation of authorisations, as well as those related to subsequent amendments to these schemes.

How the CNMV acts in the supervision of firms providing services and with regard to investment products:

• Supervision of rules of conduct and organisational requirements of firms providing investment services (Investment Firms and Credit institutions).
  • Monitoring the compliance with the rules of conduct by reporting firms, the most notable including the classification of clients, the obligations of informing clients, assessing the appropriateness of the product or service for the client, as well as the obligations related to the management and execution of orders.
  • Monitoring of organisational requirements, inter alia: having an adequate and proportionate structure, duly exercising the compliance, risk control and internal audit functions, having appropriate procedures for handling conflicts of interest, keeping records of services provided, adopting measures to safeguard instruments and cash of clients, having business continuity plans and procedures for outsourcing services or functions.   
  • In the case of credit institutions providing investment services, in accordance with the distribution of powers laid down by law among the CNMV and the Bank of Spain, the obligations related to risk controls, internal audit, safeguarding the cash of clients, continuity and outsourcing of functions fall within the remit of the Bank of Spain.
• Prudential supervision of Investment Firms.
  • Monitoring the compliance with prudential requirements, and in general, regulatory capital requirements, the obligation of assessing internal capital adequacy, and the reporting obligations of firms.  
• Supervision of the activity of Crowdfunding Platforms.
  • Monitoring the compliance with the rules of conduct and organisational requirements by crowdfunding platforms.
• Supervision of Collective Investment Scheme Management Companies, Closed-Ended Collective Investment Scheme Management Companies and Asset Securitisation Fund Management Companies.
  • Control, via periodic reporting obligations, of the financial situation and creditworthiness.
  • Control of the organisational requirements, resources and functions. 
  • Control of the compliance with legal requirements for public disclosures.
• Supervision of Collective Investment Schemes. 
  • Control, via periodic reporting obligations or requests, of the risks, restrictions on investment, liquidity and valuation.  
  • Control of the compliance with legal requirements for public disclosures.
• Supervision of closed-ended investment schemes, including venture capital vehicles.
  • Control, via periodic reporting obligations or requests, in the case of venture capital vehicles, of the financial situation or compliance with investment ratios. 
  • Control of the compliance with legal requirements for public disclosures.
• Supervision of CIS and closed-ended CIS depositories.. 
  • Control of the compliance with custody obligations, registration of assets and supervision and monitoring of management companies’ activities.

Supervisory techniques