Notice No. 1/2019

Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Published in: DR, 2nd Series, Part E, No. 21, of 30-01-2019 Mod. 99999910/T – 01/14 Index Text of the Notice Annex to the Notice Text of the Notice Regulation (EC) No. 1606/2002 of the European Parliament and of the Council, of July 19, 2002, on the application of international accounting standards, determines, in its Article 4, that, with respect to each financial year beginning on or after January 1, 2005, companies whose securities are admitted to trading on a regulated market of any Member State shall prepare their consolidated accounts in accordance with International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS), as adopted in the European Union.

Bank of Portugal Notice No. 5/2015 establishes that credit institutions, investment firms, and financial institutions – with the exception of companies covered by the aforementioned Regulation – must prepare individual financial statements and consolidated financial statements, where applicable, in accordance with IAS, as adopted at each moment by European Union Regulation, and respecting the conceptual framework for the preparation and presentation of financial statements that underpins those standards.

Pursuant to Article 115 of the General Regime of Credit Institutions and Financial Institutions, approved by Decree-Law No. 298/92, of December 31, it is incumbent upon the Bank of Portugal to define the elements that credit institutions, investment firms, financial institutions, and branches in Portugal of credit institutions, investment firms, and financial institutions headquartered in the European Union or in third countries must submit to it and those they must publish, under the terms and periodicity defined in a Bank of Portugal Notice.

Taking into account the time elapsed since the establishment of the current regulatory framework and the relevant regulatory developments that have occurred since then, this Notice aims to update the Bank of Portugal's regulatory framework regarding reporting elements, thereby revoking (i) Bank of Portugal Notice No. 12/91, which establishes the elements that branches in Portugal of credit institutions or other financial institutions must publish, (ii) Bank of Portugal Notice No. 6/2003, which establishes the terms and periodicity of publication of accounts of the remaining entities subject to the supervision of the Bank of Portugal, and (iii) Bank of Portugal Instruction No. 19/2006, which establishes the terms under which entities covered

Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Mod. 99999910/T – 01/14 by the provisions of Notices Nos. 12/91 and 6/2003 must send reporting elements for publication on the Bank of Portugal’s website on the Internet. The draft of this Notice was subject to public consultation. In these terms, the Bank of Portugal, using the powers conferred upon it by Article 17 of its Organic Law, approved by Law No. 5/98, of January 31, and by the provisions of Article 115 and the combined provisions of paragraph 2 of Article 120 and paragraph 1 of Article 196, all of the General Regime of Credit Institutions and Financial Institutions, approved by Decree-Law No. 298/92, of December 31, determines the following:

Article 1. Object This Notice has as its object: a) To define the reporting elements that must be published and sent to the Bank of Portugal; b) To define the terms and periodicity of publication and sending to the Bank of Portugal of the reporting elements; c) To establish procedures for maintaining and making available the information supporting the preparation of financial statements.

Article 2. Scope of Application This Notice is applicable to the following entities: a) Credit institutions, investment firms, and financial institutions; b) Branches in Portugal of credit institutions, investment firms, and financial institutions with headquarters in the European Union; c) Branches in Portugal of credit institutions, investment firms, and financial institutions with headquarters in third countries.

Article 3. Reporting Elements 1 – In addition to other documents provided for by law, the annual individual and consolidated reporting elements, where applicable, comprise the following documents: a) Complete set of financial statements in accordance with International Accounting Standards (IAS), as adopted at each moment by European Union Regulation, namely: i. Statement of financial position;

Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Mod. 99999910/T – 01/14 ii. Statement of comprehensive income (statement of income and other comprehensive income) or statement of income and statement of other comprehensive income; iii. Statement of changes in equity; iv. Statement of cash flows; v. Notes, comprising significant accounting policies and other explanatory information. b) Management report; c) Legal certification of accounts, when provided for by general law; and d) Opinion of the supervisory body, if one exists. 2 – The elements referred to in points i. to iii. of letter a) of the preceding paragraph must be prepared taking into account the provisions of the Annex to this Notice, which forms an integral part thereof (Annex). 3 – Without prejudice to the provisions of the preceding paragraphs, entities covered by letters b) and c) of Article 2, in cases where the entity to which they belong is not subject to the preparation of financial statements in accordance with IAS, must consider that the elements provided for in letter a) of paragraph 1 of this article include, at minimum, the statement of financial position, the statement of income, and the notes.

Article 4. Periodicity of Publication of Reporting Elements 1 – Entities covered by letters a) and c) of Article 2 must proceed to the full publication of annual individual and consolidated reporting elements, where applicable, on their website, within a maximum period of 30 days after their approval. 2 – Entities covered by letter b) of Article 2 must proceed to the full publication of annual individual and consolidated reporting elements of the entity to which they belong, where applicable, on their website, within a maximum period of 30 days after their approval. 3 – Entities that, pursuant to Article 138-Q of the General Regime of Credit Institutions and Financial Institutions, approved by Decree-Law No. 298/92, of December 31 (RGICSF), are considered systemically important institutions and credit institutions authorized to receive deposits must proceed to the publication of the elements provided for in points i. and ii. of letter a) of paragraph 1 of Article 3, on an individual and consolidated basis, where applicable, on their website, within a maximum period of: a) 60 days after the end of the 1st and 3rd quarters; b) 90 days after the end of the 2nd quarter. 4 – Additionally, entities that, pursuant to Article 138-Q of RGICSF, are considered systemically important institutions, must also proceed to the publication of the elements provided for in points iii. to v. of letter a) of paragraph 1 of Article 3, on an individual and consolidated basis, where applicable, on their website, within a maximum period of 90 days after the end of the 2nd quarter.

Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Mod. 99999910/T – 01/14

Article 5. Reporting Elements of Third-Country Branches 1 – Entities covered by letter c) of Article 2 may benefit from the regime provided for in paragraph 2 of the preceding article, provided that, in the country where the headquarters of the entity to which they belong is located, their respective financial statements have been prepared and audited in conformity with standards and methods that can be recognized as equivalent to those in force in the European Union, and the condition of reciprocity with respect to credit institutions, investment firms, and financial institutions with headquarters in the European Union is satisfied in the country where their registered office is located. 2 – For the purposes of the provision of the preceding number, in the case of wishing to benefit from the regime provided for therein, the entities indicated therein must request from the Bank of Portugal, through a duly reasoned petition, exemption from sending their own reporting elements.

Article 6. Terms of Publication of Reporting Elements 1 – The publication of reporting elements must be carried out in Portuguese or according to a translation into Portuguese duly legalized in the cases referred to in paragraph 2 of Article 4 and Article 5. 2 – In the event that the entity does not have its own website, the reporting elements may be published in one of the following locations: a) Portal of the financial group to which the entity belongs or of another entity that is part of that same financial group, provided that: i. That other entity is a parent company or subsidiary of the entity and is subject to the supervision of the Bank of Portugal; ii. Not being a parent company or subsidiary of the entity, that other entity is subject to the supervision of the Bank of Portugal and is integrated into the consolidation perimeter provided for in letter 2) of paragraph 2 of Article 2 of Bank of Portugal Notice No. 8/94, and its website is habitually used by the entity to contact third parties, with a view, inter alia, to the dissemination of institutional information or the promotion of its products and services; iii. If neither of the conditions provided for in the preceding letters is met, prior authorization from the Bank of Portugal is obtained. b) In the Diário da República; c) In an unofficial newspaper of large national circulation. 3 – The publication of reporting elements of entities on their website must observe the following cumulative conditions: a) The reporting elements must remain available for consultation by interested parties for a period of ten years, counting from their reference date;

Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Mod. 99999910/T – 01/14 b) Necessary measures must be adopted so that the main search engines available on the Internet allow easy and immediate access to the pages of the website where the reporting elements are published, based on searches performed that include only the name of the reporting elements and the designation of the desired entity; c) The structure of the website used for publication must allow easy and intuitive access to the reporting elements; d) The publication must be carried out consistently over time.

Article 7. Sending of Reporting Elements to the Bank of Portugal 1 – Entities covered by this Notice must send to the Bank of Portugal the elements provided for in paragraphs 1 and 2 of Article 4 within a period of 30 days after their approval or, if such occurs at an earlier moment, as soon as they are disclosed to the public, including still the minutes of approval and the list(s) of attendees. 2 – Entities covered by letter a) of Article 2 subject to the publication of semiannual or quarterly reporting elements, pursuant to the Securities Code, approved by Decree-Law No. 486/99, of November 13, must send these elements to the Bank of Portugal as soon as they are disclosed to the public. 3 – Without prejudice to the provision of the preceding number, entities that, pursuant to Article 138-Q of RGICSF, are considered systemically important institutions, must send to the Bank of Portugal the elements provided for in paragraphs 3 and 4 of Article 4, as soon as they are disclosed to the public.

Article 8. Form of Sending The sending of information to the Bank of Portugal is carried out on computer media through the BPnet System.

Article 9. Information Supporting Reporting Elements 1 – Pursuant to letter h) of paragraph 1 of Article 14 of RGICSF, entities must have solid accounting procedures, which allow them to adequately prepare the information presented in the reporting elements, including the use of appropriate off-balance sheet records to support the information presented in the notes. 2 – The supporting information for the preparation of these elements must be maintained by entities for a minimum period of 10 years. 3 – The Bank of Portugal may request at any time the availability of the information supporting the preparation of the reporting elements, which must be provided by entities within a period of 5 business days on computer media through the BPnet system.

Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Mod. 99999910/T – 01/14

Article 10. Enabling Norm The Bank of Portugal may issue Instructions it deems necessary for the compliance with the rules of this Notice.

Article 11. Repealing Norm 1 — The following Notices are revoked: a) Bank of Portugal Notice No. 6/2003; b) Bank of Portugal Notice No. 12/91. 2 — Bank of Portugal Instruction No. 19/2006 is revoked.

Article 12. Transitional Provisions 1 – This Notice applies to reporting elements relating to financial years starting from January 1, 2019. 2 – Reporting elements relating to December 31, 2018, sent to the Bank of Portugal, in accordance with the regulations in force at that date, are covered by the revocation of the obligation to publish on the Bank of Portugal’s website on the Internet. 3 – Without prejudice to the provisions of the preceding numbers, entities may, if they deem fit, anticipate the application of the provisions of this Notice to reporting elements referring to December 31, 2018.

Article 13. Entry into Force This Notice enters into force on the day following its publication. January 22, 2019. − The Governor, Carlos da Silva Costa.

Annex to Bank of Portugal Notice No. 1/2019 .................................................................................................................................................................................................. Mod. 99999910/T – 01/14 Annex to the Notice 1 – The reporting elements provided for in subletters i. to iii. of letter a) of paragraph 1 of Article 3 of this Notice must always be prepared respecting International Accounting Standards (IAS), as adopted at each moment by European Union Regulation. 2 – Without prejudice to the provision of the preceding number, entities must take as reference the financial statement models and their main line items applicable provided for in Annex III of Commission Implementing Regulation (EU) No. 680/2014, of April 16, 2014, which establishes implementing technical standards regarding reporting for the purposes of supervision of institutions, according to the following mapping: Element Tables («model code») Statement of financial position F01.01, F01.02 and F01.03 Statement of income F02.00 Statement of other comprehensive income F03.00 Statement of changes in equity F46.00 3 – In these terms, when permitted by IAS and such proves relevant for the understanding of the reporting elements provided for in subletters i. to iii. of letter a) of paragraph 1 of Article 3 of this Notice, entities may use different aggregations, item lines, titles, and subtotals.