The Spanish National Securities Market Commission (CNMV) has presented its ‘Supervisory Actions Simplification Plan,’ which will reduce by up to 50% certain types of information that supervised entities must provide in their periodic reports to the body.
The stock market supervisor’s new plan consists of 31 measures, 18 of which are aimed at reducing the documentation required with the goal of simplifying it in a “proportionate” manner, “avoiding duplication,” and improving the systems for sending and managing information. Furthermore, 26% of the measures are aimed at streamlining processing deadlines and improving efficiency in procedures, and 16% are directed at facilitating the systems for sending and managing information.
The measures propose streamlining the procedure for registering entities with the CNMV, generalizing the use of the simplified procedure for prospectus updates as long as it does not harm investor protection, speeding up the registration of service providers’ addresses and names, as well as the management of highly deficient files, or optimizing the non-opposition procedures for acquisitions involving entities supervised by the Bank of Spain or the Directorate-General for Insurance. Regarding this last point, the goal is for the suitability verification to be based on consultation with these two bodies and to avoid requiring information about the suitability of the company itself. For takeovers (OPAs), the CNMV proposes eliminating the Spanish translation of certain annexes written in English.
It also includes the suppression of the obligation to send reports to the CNMV on the monitoring of inspections or internal audits, and promoting the use of “quick visits or limited scope inspections” for smaller investment services firms. It will also accept electronic signatures from third countries in authorizations for new entities and non-opposition procedures and will omit consultations with non-European supervisors in the suitability assessments of shareholders, among other measures.
Some measures are aimed at repealing obsolete circulars, reducing the scope or frequency of supervision in low-risk areas, and at automating tasks, streamlining deadlines, and optimising resources. The CNMV clarifies that the suppression of reports or changes in reporting frequency do not impact investor protection.
The CNMV has prepared a set of proposals for the General Secretariat of the Treasury and International Finance so that the corresponding regulatory changes can be articulated. This 31-measure plan has been reviewed by the CNMV’s Advisory Committee, which has made relevant contributions, and is open to the incorporation of new initiatives through an email mailbox. The CNMV’s intention is to implement all measures in the first quarter of next year.
