Summary of CySEC's Circular C430
Memo #06-2021
CySEC Circular No: C430
Date: 11/03/2021
Subject: Requirements of the Portuguese Securities and Exchange Commission (‘the CMVM’) regarding the promotion, distribution and marketing of PRIIPs in the territory of Portugal
Purpose: To draw the attention of the CIFs to the CMVM’s current regulatory framework applicable with regards to promoting, distributing, marketing and/or making PRIIPs available in Portugal and/or to investors in Portugal.
In Summary:
CySEC has issued the Circular C430 on 10/03/2021 to draw the attention of the Cyprus Investment Firms (CIFs) to the requirements of the Portuguese Securities and Exchange Commission (‘the CMVM’) regarding the promotion, distribution and marketing of packaged retail investment and insurance products (the “PRIIPs”) available in Portugal and/or to investors in Portugal.
In November 2020, the CMVM published four Regulations, that among other amendments provide for a 29% reduction in the duties of regular reporting of information to the CMVM, affirming simplification as one of the guiding principles of its regulatory policy, which will take effect on 1 July, 2021. The current reporting requirements of Regulation No.8/2018 and No.3/2016 will therefore be amended by the CMVM Regulation No. 6/2020 which will take effect as of 1st July 2021.
This Circular C430 refers to CMVM requirements with regards to the obligation to provide investors with key information documents (KIDs) and the obligations of PRIIPs marketing communications.
Furthermore this Circular C430 refers to the legal and regulatory framework that CIFs are required to comply, applicable with marketing communications, promoting or advertising materials, as per article 9 of the PRIIPs Regulation, article 4 of the Portuguese PRIIPs Legal Framework, article 7(4) and 292 of the Portuguese Securities Code and articles 14-17 of CMVM Regulation No.8/2018.
This Circular C430 also refers about the Current PRIIPs’ legal and regulatory framework in Portugal:
1) Regulation (EU) No. 1286/2014 of the European Parliament and of the Council, of 26 November 2014 on key information documents for PRIIPs;
2) Delegated Regulation (EU) 2017/653 of the Commission, of March 8, 2017 for the presentation, content, review and revision of PRIIPs key information documents and the conditions for fulfilling the requirement to provide such documents;
3) CMVM Regulation No. 5/2019 (Restricts the sale, distribution and sale of differential contracts [CFDs] and prohibits the sale, distribution and sale of binary options in Portugal to non-professional investors).
4) CMVM Regulation No. 8/018 (contents only in Portuguese) on information and marketing duties relating to PRIIPs;
5) Portuguese PRIIPs Legal Framework (Annex II of the Law No. 35/2018, of July 20).
CySEC expects all CIFs that promote, distribute, market and/or make PRIIPs available in Portugal and/or to investors in Portugal to take, where necessary, appropriate actions and measures to adhere to the requirements of the CMVM.
