Comisión Nacional del Mercado de Valores
Encyclopedia
The Comisión Nacional del Mercado de Valores (CNMV) is the Spanish government agency responsible for regulating the financial securities markets in Spain
. It is an independent agency that falls under the Ministry of Economy and Finance of Spain
. 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 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.
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:
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.
)
(IOSCO) and the Committee of European Securities Regulators
(CESR) and is actively involved in both organisations and its working groups. They bring together the banking, securities and insurance
sectors worldwide
and within Europe
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
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
in assessing the financial sectors of accession countries that want to join the European Union.
In Ibero-America
, 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 Organization for Economic Cooperation and Development (OECD), whose work on Principles of Corporate Governance it has been working with very actively.
Appointments lasts four years, following which may be renewed once.
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
. It is an independent agency that falls under the Ministry of Economy and Finance of Spain
Ministry of Economy and Finance (Spain)
The Ministry of Economy and Finance is the Ministry of Economic affairs and Second Vice President of the Government of SpainThis Ministry is in charge of the development, proposal and execution of the economical policy of the government, specially of the State Budgets, the control of Public...
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 UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. 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 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 EstadoBoletín Oficial del Estado
The Boletín Oficial del Estado , Spanish for Official Bulletin of the State, is the official gazette of the Government of Spain. It publishes the laws of the Cortes Generales and the dispositions of the Autonomous Communities...
)
International activities
The CNMV's is a member of both the International Organization of Securities CommissionsInternational Organization of Securities Commissions
The International Organization of Securities Commissions is an association of organisations that regulate the world’s securities and futures markets....
(IOSCO) and the Committee of European Securities Regulators
Committee of European Securities Regulators
The Committee of European Securities Regulators was an independent committee of European Securities regulators established by European Commission on June 6 of 2001...
(CESR) and is actively involved in both organisations and its working groups. They bring together the banking, securities and insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
sectors worldwide
World
World is a common name for the whole of human civilization, specifically human experience, history, or the human condition in general, worldwide, i.e. anywhere on Earth....
and within Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
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
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
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
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
in assessing the financial sectors of accession countries that want to join the European Union.
In Ibero-America
Ibero-America
Ibero-America is a term used since the second half of the 19th century to refer collectively to the countries in the Americas that were formerly colonies of Spain or Portugal. Spain and Portugal are themselves included in some definitions, such as that of the Ibero-American Summit and the...
, 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 Organization for Economic Cooperation 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.
Current members
- Julio Segura Sanchez (May 5, 2007) Chairman
- Carlos Arenillas Lorente (October 7, 2004) Vice Chairman
- Maria Soledad Abad Rico (April 24, 2007)
- Rosa Rodriguez Moreno (July 3, 2006)
- Soledad Núñez Ramos Directorate General of Treasury (???)
- Jose Maria Viñals Deputy Governor of the Bank of Spain (???)
See also
- Securities CommissionSecurities CommissionSecurities Commission a statutory body entrusted with the responsibility of regulating and systematically developing the capital markets in Malaysia.-History:...
- International Organization of Securities CommissionsInternational Organization of Securities CommissionsThe International Organization of Securities Commissions is an association of organisations that regulate the world’s securities and futures markets....
(IOSCO) - Committee of European Securities RegulatorsCommittee of European Securities RegulatorsThe Committee of European Securities Regulators was an independent committee of European Securities regulators established by European Commission on June 6 of 2001...
(CESR) - :es:Caso Gescartera