Surely on some occasion you have heard of the CNMV. However, those acronyms actually hide a quite important organism, Do you know what the CNMV is?
Below we clarify what this body refers to, what its functions are, who forms it, what its regulations are and other points that you must take into account.
What is the CNMV
The CNMV is the acronym that they comprise the National Securities Market Commission. In other words, it is an entity whose objective is to supervise the securities markets in Spain and that these are in accordance with the operation and the rules that have been agreed.
According to the RAE, this entity is conceptualized as follows:
"Independent administrative authority whose purpose is to supervise and inspect the securities markets and the activity of all the natural and legal persons involved in their traffic, the exercise over them of the sanctioning power and the other functions that may be assigned to it. attributes the law. Likewise, it ensures the transparency of the securities markets, the correct formation of prices in them and the protection of investors, promoting the dissemination of whatever information is necessary to ensure the achievement of these ends ”.
Where are you from
The CNMV was created when the Law 24/1988, of the Stock Market, that supposed a whole reform in the Spanish financial system. Over the years, it has been updated through laws that have allowed it to adapt to the requests and obligations of the European Union, until it is now.
From that moment on, one of its missions has been to collect information on those companies that are listed on the Stock Market, as well as on securities issues that are carried out in Spain, in addition to monitoring those movements that occur in the market or serving investors . Although they actually have many more functions.
Functions of the CNMV
Source: Expansión
We could say that the The main objective of the CNMV is, without a doubt, to supervise, control and regulate all the securities markets that operate in Spain, in order to guarantee security, solvency and protection of the figures that intervene in it. However, this function is not easy, nor is it the only one it performs.
And it is that, in addition to the above, it has other types of functions, such as assigning ISIN (International Securities Identification Number) and CFI (Classification of Financial Instruments) codes to securities issues that are carried out in Spain.
It also serves to advise the Government and the Ministry of Economy, in addition to actively participating with international institutions.
On its website we can see the functions and form of action of this Commission with respect to the primary, secondary market, the settlement, compensation and registration of securities as well as in ESI (Investment Services Companies) and IIC (Funds and Companies of Investment).
Who forms the CNMV
The structure of the CNMV is made up of three fundamental pillars: the Council, an Advisory Committee, and an Executive Committee. However, there are also three general directors, for supervision of entities, for market supervision and one for legal services.
Detailing each of them we have:
Council
The Board is in charge of all the powers of the CNMV. It is made up of:
- President and Vice President. These are appointed by the Government through the Minister of Economy who is the one who recommends them.
- A General Director of the Treasury and Financial Policy and the Deputy Governor of the Bank of Spain. They are the born Counselors.
- Three Counselors. They are also appointed by the Minister of the Economy.
- Secretary. In this case, this figure has a voice, but no vote.
Among the functions carried out by the Council are:
Approve Circulars (from article 15 of Law 24/1988, of July 28), the Internal Regulations of the CNMV, the preliminary draft budgets of the Commission, the annual reports according to article 13 of Law 24/1988, of July 28, and article 4.3 of these Regulations and the Report on the supervisory function of the CNMV. It will also be in charge of appointing and dismissing General Directors and Department directors, as well as setting up the Executive Committee and raising the annual accounts to the Government.
Executive committee
This is made up of a president and vice president, three councilors and a secretariat. Among its functions are:
Prepare and study the matters to be submitted by the CNMV Board, study and assess matters for the chairman, coordinate actions with the Commission's governing bodies, approve the Commission's acquisitions of assets and resolve administrative authorizations.
Advisory committee
Formed by a president, two secretaries and representatives of the market infrastructures, issuers, investors and credit and insurance entities. Representatives of professional groups, professionals of recognized prestige, representatives of the Investment Guarantee Fund and of the Autonomous Communities with official secondary market also take part in it.
Apart from these great figures, the CNMV has a General Directorate for Entities, one for Markets, another for the Legal Service, one for Strategic Policy and International Affairs. In addition to a Department of Internal Control, Information Systems, a General Secretariat and a Communication Directorate.
Who regulates
Now that you know a little more about the CNMV, Do you want to know who are the people and / or companies that it regulates? Specifically we talk about:
- Companies that issue shares in both the primary and secondary markets.
- Companies that provide investment services.
- The so-called fintech companies.
- Collective investment companies.
This allows investors to obtain the support of this institution when investing in the stock market with all possible guarantees and security.
CNMV regulations
The CNMV is governed by two regulations, which are those that control the good work of this body. On the one hand, the Internal Regulations of the CNMV. On the other, the code of conduct.
Of course, neither should we forget Law 24/1988, of July 28, on the Stock Market, and its respective changes in successive laws.
Is it now clearer to you what the CNMV is?