Regulatory Alerts2020-12-23
Circular Letter No. CC/2020/00000072: Recommendation on Distributions During the COVID-19 Pandemic
The Bank of Portugal issued Circular Letter No. CC/2020/00000072 to recommend that supervised entities restrict dividend distributions and other profit allocations during the COVID-19 pandemic to preserve liquidity and capital buffers. This regulatory guidance applied to credit institutions, investment firms, and other financial entities to ensure financial stability and business continuity during the health crisis. The document was published on December 23, 2020, and its validity expired on September 30, 2021, after which it was officially revoked on October 1, 2021.
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