Regulatory Alerts2018-03-27
Circular 1/2018 of the National Securities Market Commission on Warnings Regarding Financial Instruments
The Spanish National Securities Market Commission (CNMV) issued Circular 1/2018 to strengthen investor protection by mandating specific warnings for retail clients purchasing complex financial instruments. The regulation requires entities to obtain a handwritten acknowledgment from clients when selling products that are generally unsuitable due to complexity, are eligible for internal bail-in recapitalization, or exhibit significant valuation differences. Additionally, the circular establishes transitional measures to warn existing holders of these instruments in their first position statement after the regulation's entry into force.
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