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Eyeing Brexit, Portugal Streamlines Regulations to Attract Asset Managers

10 August 2018

The CMVM and the Bank of Portugal released a welcome guide aimed at attracting asset managers who may be interested in operating from Portugal, taking advantage of the uncertainty generated by Brexit. Registration will be quicker and easier.

Obtaining the necessary permits to trade on Portugal’s financial markets will soon become easier. The Bank of Portugal and Portugal’s Securities and Exchange Commission (CMVM) issued a “welcome guide,” in English, describing the steps needed to obtain the required authorisations and registrations for the exercise of economic activity by managers of investment funds.

In a statement, the two supervisory agencies announced that they are seeking to create the conditions to attract an increasing number of asset management companies to the country, with a particular focus on “relocation processes arising from the UK’s departure from the European Union.” The city of London is currently the European Union’s main financial centre, but many investment banks and brokerage houses have threatened to leave, and some have already done so, to other cities, especially Frankfurt, and also Paris.

While unable to compete with the large European financial centres, Lisbon also wants to avoid being left out entirely and is looking to make itself more competitive by reducing the time needed to obtain the required authorisations and registration, as well as the possibility of completing the process over the internet. The joint document published by the Bank of Portugal and the CMVM gathers all the information on how any interested firms should contact regulators, the procedures for authorisation and registration with each, the applicable legislation and necessary documentation, as well as the expected length of the process.

Before, managing financial assets in regulated markets depended on prior authorisation and registration with the Bank of Portugal, after which, the firm would be required to register with the CMVM. The two processes could take a full year. Now, both applications may be submitted concurrently. In the case of the Bank of Portugal, the process is expected to take roughly three months. As long as the necessary required information is presented and the requirements met, the CMVM can provide final registration within 30 days. Currently, 13 securities investment funds – covering stocks, bonds and other financial securities – 30 real estate investment funds, two credit securitisation firms, 24 insurers and 18 pension fund managers are registered.

The registration and authorisation processes can now be submitted simultaneously to the two regulators, which have also promised to try to work together to reduce the time before approvals even further. Specific teams are being set up to liaise with potential operators in the Portuguese market. They will provide clarification and support during the first months of business for any companies that obtain the authorisation to operate on the Portuguese financial market.

Original Story: Observador – Ana Suspiro

Photo: Ian Langsdon / EPA

Translation: Richard Turner