Regulatory Alerts2014-04-03
Circular 1/2014 of the CNMV on Internal Organization and Control Functions of Investment Service Entities
The Spanish National Securities Market Commission (CNMV) issued Circular 1/2014 to establish detailed internal organization and control requirements for investment service entities, replacing the previous 1998 circular. The regulation mandates the creation of independent compliance, risk management, and internal audit units, while allowing for proportional consolidation of these functions based on the entity's size and complexity. It further specifies the operational duties of these control units, including conflict of interest management, personal trading restrictions, and the preservation of client assets, with full compliance required by December 31, 2014.
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