National Securities Market Commission (Spain)
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The National Securities Market Commission () (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the
securities markets A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of saver ...
in
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
. It is an independent agency that falls under the Ministry of Economy.


History

The CNMV was established in 1988 as part of a major reform of Spanish financial sector with the passing of law 24/1988 also known as the "Stock Market" act. Laws 37/1998 and 44/2002 have updated the powers and responsibilities of the agency establishing a regulatory framework to meet the requirements of the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
. It also allowed for the development of the Spanish stock market in the European environment, incorporating new measures for the investor protection. On 23 May 2008, the then second vice-president and finance minister, Pedro Solbes, announced in the Economic and Financial Committee of Congress that the government was planning a realignment of responsibilities for the regulation of the financial system as agreed by finance ministers of the European Union (
ECOFIN The Economic and Financial Affairs Council (ECOFIN) is one of the oldest configurations of the Council of the European Union and is composed of the economics and finance ministers of the 27 European Union member states, as well as Budget Minist ...
). The project was expected to separate prudential and supervisory regulation to improve efficiency in monitoring the solvency and competitiveness of financial intermediaries as well as market transparency. The Bank of Spain, would have taken over some of CNMVs responsibilities and would be required to ensure the creditworthiness not just of banks and savings banks, but also from other financial institutions, including insurance companies and investment institutions. However almost a year and half after the announcement, on 19 September 2009, a digital newspaper that echoes the forecast said that the law on the unification of financial supervisors was due to reach Parliament in early 2010, but neither parliamentarians nor the bodies concerned had any time on their agenda to perform such a reform. According to sources from the Ministry of Economy, the restructuring will have to wait for a decision in the European Union, which is studying the matter with a view to adopting a common format that could actually be more similar the current system.


Purpose and functions

The aim of the CNMV is to ensure stability and transparency of financial markets, protect investors and make sure that brokers and intermediaries behave correctly. In exercising its powers the CNMV received a significant amount of information, much of which is contained in official records. This is considered public information. Action by the CNMV as a supervisory body is mainly focused on: *companies issuing securities to be placed publicly on the primary market *participants in the secondary securities markets *companies providing investment services and collective investment institutions In addition the CNMV exercises prudential supervision by seeking to ensure that the system is solvent and transactions are secure. The CNMV is also responsible for assigning the ISIN codes for all securities issued in Spain.


Economic data

The Spanish securities market was worth 22.65 million euros in 2007, an increase from 13.72 million euros in 2006 according to the supervisor's annual accounts published in the official gazette ( Boletín Oficial del Estado).


International activities

The CNMV's is a member of both the
International Organization of Securities Commissions The International Organization of Securities Commissions (IOSCO) is an association of organizations that regulate the world's securities and futures markets. Members are typically primary securities and/or futures regulators in a national jurisdic ...
(IOSCO) and the
Committee of European Securities Regulators The Committee of European Securities Regulators (CESR) was an independent committee of European Securities regulators in the Lamfalussy process established by the European Commission on June 6, 2001. The role of this committee was to * Improve th ...
(CESR) and is actively involved in both organisations and its working groups. They bring together the
banking A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becau ...
,
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
and
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
sectors
world In its most general sense, the term "world" refers to the totality of entities, to the whole of reality or to everything that is. The nature of the world has been conceptualized differently in different fields. Some conceptions see the worl ...
wide and within
Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
respectively. The CNMV also performs an important task of advising and assisting the Spanish authorities in their participation in the institutions of the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
and is a regular adviser to the Directorate General of Treasury and Financial Policy and the European Securities Committee. It also participates in the review of company law and stock market participant. It also provides technical assistance to the
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
in assessing the financial sectors of accession countries that want to join the European Union. In
Ibero-America Ibero-America ( es, Iberoamérica, pt, Ibero-América) or Iberian America is a region in the Americas comprising countries or territories where Spanish or Portuguese are predominant languages (usually former territories of Portugal or Spain). ...
, the CNMV is working closely with the Iberoamerican Institute of Securities Market (IIMV) in helping to foster progress and modernization of securities markets in Latin America and developing training programs for cooperation. The CNMV is also involved in the Iberian Electricity Market (MIBEL), which was established by agreement between Spain and Portugal in 2004, and in the Organisation for Economic Co-operation and Development (OECD), whose work on Principles of Corporate Governance it has been working with very actively.


Structure

The CNMV consists of a Council, an advisory committee and an executive committee. In addition there are three general managers: one for monitoring entities, one for other market supervision and one for legal service.


Council of the CNMV

The CNMV is governed by a Board and consists of the following members: *A President and Vice Chairman who is appointed by the Government based on advice from the Finance Minister, from among persons of recognized competence in matters relating to the securities market. *The Director General of the Treasury and Financial Policy and the Deputy Governor of the Bank of Spain, which have the role of Trustees ex officio. *Three members appointed by the Minister of Economy among persons of recognized competence in matters relating to the securities market. *The Secretary, who can advice but cannot vote, they are the Director General of Legal Service. Appointments lasts four years, following which may be renewed once.


CNMV Board

* Chairman: Mr. Rodrigo Buenaventura Canino * Vice Chairwoman: Ms. Montserrat Martínez Parera * Commissioner: Ms. María Dolores Beato Blanco * Commissioner: Mr. Juan Manuel Santos-Suárez Márquez * Commissioner: Ms. Helena Viñes Fiestas * Commissioner: Mr. Carlos San Basilio Pardo (General Secretary of the Treasury and Finance Policy) * Commissioner: Ms. Margarita Delgado (Deputy Governor of the Bank of Spain) * Secretary: Ms. Patricia Muñoz González-Úbeda


See also

* Securities Commission *
International Organization of Securities Commissions The International Organization of Securities Commissions (IOSCO) is an association of organizations that regulate the world's securities and futures markets. Members are typically primary securities and/or futures regulators in a national jurisdic ...
(IOSCO) *
Committee of European Securities Regulators The Committee of European Securities Regulators (CESR) was an independent committee of European Securities regulators in the Lamfalussy process established by the European Commission on June 6, 2001. The role of this committee was to * Improve th ...
(CESR) * :es:Caso Gescartera


References


External links


Website of the CNMV
{{DEFAULTSORT:Comision Nacional del Mercado de Valores 1988 establishments in Spain Government agencies established in 1988 Business in Spain Government agencies of Spain Financial regulatory authorities of Spain