Regulatory Alerts2024-04-04 | C629CySEC Circular C629: Requirements of the Portuguese Securities and Exchange Commission (CMVM) regarding Financial Intermediaries on Advertising
The Cyprus Securities and Exchange Commission (CySEC) issued Circular C629 to alert Cyprus Investment Firms about the advertising regulations established by the Portuguese Securities and Exchange Commission (CMVM). The CMVM mandates that financial intermediaries operating in Portugal must ensure their advertisements include proper entity identification, provide complete and truthful information, and clearly disclose associated risks alongside potential benefits. CySEC urges these firms to take necessary measures to adhere to these CMVM requirements when advertising financial services or instruments to investors in Portugal.
TO : Cyprus Investment Firms FROM : Cyprus Securities and Exchange Commission DATE : 04 Απριλίου 2024 CIRCULAR No : C629 SUBJECT : Requirements of the Portuguese Securities and Exchange Commission (the ‘CMVΜ’) regarding the Financial Intermediaries on Advertising The Cyprus Securities and Exchange Commission (the ‘CySEC’) hereby draws the attention of the Cyprus Investment Firms (the ‘CIFs’), to the Circular Note No. 010/2023 - Financial Intermediaries on Advertising, issued by CMVM, regarding advertising by Financial Intermediaries in Portugal. In particular, the CMVM requests the financial intermediaries registered with the CMVM and financial intermediaries carrying out financial intermediation activities in Portugal through the freedom to provide services, in accordance with the applicable legislation to ensure the following:
- the advertising they carry out includes their “entity identification”, regardless of the channel used,
- all the information provided is complete, truthful, current, clear, objective, and lawful and
- where they refer, in their advertisements, to potential benefits of an investment service or financial instrument, they must also correctly and clearly state the relevant risks of that investment service or financial instrument. CySEC urges all CIFs that are advertising the provision of financial services1 and/or financial instruments2 to investors in Portugal to take, where necessary, appropriate actions and measures to adhere to the CMVM’s Circular. Sincerely, Dr George Theocharides Chairman of Cyprus Securities and Exchange Commission 1 As defined in Annex I, Part I of the Law 87(Ι)/2017 2 As defined in Annex I, Part III of the Law 87(I)/2017