Notice No. 1/2021

Notice No. 1/2021 Published in: DR, 2nd Series, No. 65, Part E, of 05-04-2021 Mod. 99999939/T – 01/14

Text of the Notice

Considering the authorization granted to the Banco de Portugal by Article 18(1) of Decree-Law No. 157/2014 of 24 October, to define the prudential requirements to be applied to financial societies not subject to Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (Regulation (EU) No. 575/2013), the Banco de Portugal Notice No. 11/2014 of 22 December was issued.

Thus, the following entities were included within its scope: credit finance companies, investment companies, leasing companies, factoring companies, mutual guarantee societies, branches of financial institutions with headquarters abroad covered by Article 189(1) of the General Regime of Credit Institutions and Financial Societies, approved by Decree-Law No. 298/92 of 31 December (RGICSF), and also the IFD - Development Financial Institution, S.A. (IFD), qualified as a financial society by Decree-Law No. 155/2014 of 21 October.

Decree-Law No. 63/2020 of 7 September proceeded to the merger by incorporation of PME Investimentos — Investment Society, S.A. (PME Investimentos), and the IFD, into SPGM — Investment Society, S.A. (SPGM). Additionally, the latter, as the incorporating society, proceeded to change its corporate name to Banco Português de Fomento, S.A. (BPF).

This Decree-Law qualifies, for all legal purposes, the BPF as a financial society, under the provisions of Article 6(1)(l) of the RGICSF, subject to the supervision of the Banco de Portugal.

The BPF resulted from the legal succession of PME Investimentos, the IFD, and SPGM, any of the three being subject to the regulatory framework applicable in Banco de Portugal Notice No. 11/2014, so its prudential regime is governed by the same requirements that were applicable to those financial societies.

In this regard, Banco de Portugal Notice No. 11/2014 of 22 December is amended in order to provide in its scope an express reference to Banco Português de Fomento, S.A., with the consequent elimination of the reference to the IFD, an entity extinguished within the framework of the aforementioned merger.

In these terms, the Banco de Portugal, using the competence conferred upon it by Article 17 of its Organic Law, approved by Law No. 5/98 of 31 January, in its current wording, by Article 96(1), Article 99(1), and Article 196(1), all of the General Regime of Credit Institutions and Financial Societies, approved by Decree-Law No. 298/92 of 31 December, in its current wording, and by the aforementioned Article 18(1) of Decree-Law No. 157/2014 of 24 October, promotes the following amendment:

Article 1. Amendment to Banco de Portugal Notice No. 11/2014

Article 1 of Banco de Portugal Notice No. 11/2014 of 22 December shall have the following wording:

«Article 1. […] This Notice regulates the application of the prudential requirements established in Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 (Regulation (EU) No. 575/2013) to the following entities: a) […]; b) […]; c) […]; d) […]; e) […]; f) Banco Português de Fomento, S.A.; g) […].»

Article 2. Entry into force

This Notice enters into force on the day following its publication.

23 March 2021. - The Governor, Mário Centeno.