Regulatory Alerts2024-02-01
Added · Updated
Circular Letter No. CC/2024/00000006
The document clarifies that the regulatory framework of the Bank of Portugal regarding mortgage bonds and public sector bonds ceased to have effect on July 29, 2023. This cessation occurred upon the entry into force of CMVM Regulation No. 2/2023, which transferred supervisory competence for covered bonds to the Portuguese Securities Market Commission. Specifically, the effects of Bank of Portugal Notices No. 5/2006, 6/2006, and 8/2006, and Instruction No. 13/2006, were terminated to ensure legal certainty under the new regime.
Circular Letter No. CC/2024/00000006 Sent to: Credit Institutions. Mod. 40000375/T – 01/14 Subject: Cessation of effects of the Bank of Portugal's regulatory framework on mortgage bonds and public sector bonds
Decree-Law No. 31/2022, of May 6, approved the Legal Regime of Covered Bonds, transposing into the national legal order Directive (EU) 2019/2162 of the European Parliament and of the Council of November 27, 2019, on the issuance of covered bonds and public supervision of such bonds, and amending Directives 2009/65/EC and 2014/59/EU.
Under paragraph 1 of Article 43 of the aforementioned legal regime, the national legislator assigned to the CMVM - Securities Market Commission ("CMVM") the exclusive competence to supervise all covered bond programs, as well as transferred to this authority the competence to supervise mortgage bond and public sector bond programs approved under Decree-Law No. 59/2006, of March 20.
To regulate the Legal Regime of Covered Bonds, the CMVM issued Regulation No. 2/2023, of June 29, 2023.
Based on paragraph 9 of Article 7 of the preamble decree approving the Legal Regime of Covered Bonds, the CMVM's regulation replaced the Bank of Portugal's regulatory framework on mortgage bonds and public sector bonds.
Thus, for reasons of clarity and legal certainty, it is clarified that on July 29, 2023, the date of entry into force of CMVM Regulation No. 2/2023, the effects of Bank of Portugal Notices No. 5/2006, No. 6/2006, and No. 8/2006, and Bank of Portugal Instruction No. 13/2006, ceased.