Resolution of 20 March from the National Securities Market Commission on the suspension of administrative deadlines provided for in Royal Decree 463/2020 regarding the state of alarm

III. OTHER REGULATIONS NATIONAL SECURITIES MARKET COMMISSION 4063 Resolution of 20 March 2020, of the National Securities Market Commission, on the suspension of administrative deadlines provided for in Royal Decree 463/2020, relating to the state of alarm.

Since the beginning of the health crisis caused by COVID-19, the National Securities Market Commission (CNMV) has adopted various measures to guarantee the continuity of the services it provides to financial markets, the entities and companies participating in them, and investors, while simultaneously enabling its employees to carry out their work following the guidelines established by health authorities.

Some of these measures have been communicated publicly, notably the statement of 10 March 2019 regarding measures to guarantee service continuity and the performance of duties by its staff, and that of 16 March regarding the functioning of the CNMV General Register.

Through Royal Decree 463/2020, of 14 March (RD 463/2020), the Government declared the state of alarm to manage the health crisis situation caused by COVID-19, adopting a series of measures aimed, as stated in its Explanatory Statement, at preventing and containing the virus and mitigating the health, social, and economic impact of the situation.

With the objective of adjusting its activity to what is stipulated in the aforementioned RD 463/2020, particularly taking into account the general limitation on the freedom of movement of persons established in its Article 7 and the purpose of preventing and containing the virus, the CNMV has further increased the number of people already working remotely, following the recommendations of health authorities.

In parallel, and in accordance with the provision of Article 6 of RD 463/2020 and its purpose of mitigating the social and economic impact of the situation, the CNMV has continued its internal activity normally, adapting to the fact that most of its staff are working remotely.

Regarding its external activity, and given the provision on the suspension of administrative deadlines contained in Additional Provision Third (DA 3rd) of RD 463/2020, the CNMV is prioritizing its supervisory activities in general, as well as its authorization activities for entities and operations in markets that are capable of producing favorable effects for the interested parties.

Indeed, on the one hand, considering that the CNMV's supervisory actions ultimately aim to ensure the mission entrusted to it by the Securities Market Law, Consolidated Text approved by Royal Legislative Decree 4/2015, of 23 October (LMV), to ensure market transparency, proper price formation, and investor protection, this activity is considered indispensable and, therefore, compatible with the purpose of RD 463/2020 to mitigate the social and economic impact of the health crisis as well as with DA 3rd of the same RD regarding the suspension of deadlines. It must be noted, in particular, that one of the most relevant elements of said activity, namely the requirements addressed to natural and legal persons, is not subject to a pre-established legal deadline, but to that which the CNMV reasonably fixes taking into account the circumstances (see Article 234 LMV), including those derived from the health crisis, which is an additional reason why the deadlines for these can be considered outside the scope of application of the aforementioned DA.

OFFICIAL STATE GAZETTE No. 82 Wednesday, 25 March 2020 Sec. III. Page 26921 cve: BOE-A-2020-4063 Verifiable at https://www.boe.es

Similarly, the continuity of external authorization activities by the General Directorates of Entities and Markets is also considered indispensable in all those cases capable of producing favorable effects for the interested parties, in accordance again with the declared purpose of RD 463/2020 to mitigate the social and economic impact of the health crisis and, therefore, to distort the economy as little as possible.

In addition to all the above, Royal Decree 465/2020, of 17 March (RD 465/2020), has modified DA 3rd of RD 463/2020 to provide that, without prejudice to the suspension of administrative deadlines established, public sector entities may motivatedly agree to the continuation of those administrative procedures that refer to situations closely linked to the facts justifying the state of alarm, or that are indispensable for the protection of the general interest or for the basic functioning of services.

Taking into account all the foregoing, and for greater legal certainty, it is considered necessary to approve this resolution on the CNMV's criteria regarding the application in the scope of its functions of the aforementioned DA 3rd, criteria that are considered fully compatible both with its initial text and with the current one, following RD 465/2020. Finally, to flexibly apply this provision in cases not foreseen in this resolution, the competence to approve the resolution it provides for is delegated to the CNMV Executive Committee, which must therefore be published in the Official State Gazette.

By virtue of the above, in the session held on 20 March 2020, the CNMV Council has resolved:

First. Administrative authorization procedures whose instruction corresponds to the General Directorate of Entities or the General Directorate of Markets are considered indispensable for the protection of the general interest and for the basic functioning of the services entrusted to the CNMV, for the purposes of what is stipulated in the Third Additional Provision of Royal Decree 463/2020, of 14 March, in all those cases capable of producing favorable effects for the interested parties, as well as all those actions or procedures through which the CNMV's general supervisory actions in relation to the securities market and the entities subject to its supervision are specified.

In any case, justified causes of the interested parties in the procedure derived from the health crisis situation caused by COVID-19 must be taken into account in said procedures.

Second. The competence to resolve motivatedly on the inclusion of other administrative procedures other than those provided for in the first paragraph is delegated to the CNMV Executive Committee.

In accordance with Article 39 of Law 39/2015, of 1 October, on the Common Administrative Procedure of Public Administrations, this agreement shall produce effects from its approval, except regarding the delegation, which shall produce effects from its publication in the "Official State Gazette".

Madrid, 20 March 2020.–The President of the National Securities Market Commission, Sebastián Albella Amigo.

OFFICIAL STATE GAZETTE No. 82 Wednesday, 25 March 2020 Sec. III. Page 26922 cve: BOE-A-2020-4063 Verifiable at https://www.boe.es https://www.boe.es OFFICIAL STATE GAZETTE D. L.: M-1/1958 - ISSN: 0212-033X