Spain adapts its financial laws to European supervisors

Automatic summary, not yet reviewed

1. This royal decree-lawroyal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses. brings Directive 2010/78/EU into Spanish law, adapting financial rules to the three new European Supervisory Authorities. Rules on money laundering and on collective investment undertakings are left out, since they are transposed through other channels.
2. The rule is passed as a royal decree-law because Spain was late in transposing the directive and risked a fine from the European Union. This closes the infringement procedure opened against Spain.
3. The Bank of Spain must cooperate with supervisory authorities from other countries and with the European Banking Authority, share information on the solvency of financial institutions, and warn about emergency situations that threaten financial stability.
4. A binding mediation mechanism of the European Banking Authority and the European Securities and Markets Authority is introduced when supervisors from different member states fail to reach a joint decision within the set deadlines.
5. The National Securities Market Commission must cooperate and exchange information with EU authorities and with the European Securities and Markets Authority, and may only refuse on grounds of sovereignty, security or public order, or if a court procedure or ruling already exists on the same facts.
6. The Directorate General for Insurance and Pension Funds will inform the European Insurance and Occupational Pensions Authority about cross-border occupational pension funds, as well as about bans and control measures adopted against them.

Who it affects

• Bank of Spain (Banco de España): New duties to cooperate, exchange information and warn about emergencies with European supervisors.
• National Securities Market Commission (Comisión Nacional del Mercado de Valores): New duties to cooperate, share information and notify the European supervisory authorities.
• Credit institutions and investment services firms: Subject to coordinated supervision across several countries and to joint decisions on their own funds.
• Occupational pension funds: Their cross-border activity and sanctions are reported to the European Insurance and Occupational Pensions Authority.
• Suppliers of local governments: The Fund for financing payments to suppliers is adjusted so it can be applied with greater legal certainty.

Words worth knowing

Real decreto-ley (royal decree-law)

A rule with the rank of law that the Government can pass urgently, without going through Congress first, in cases of extraordinary and urgent need.

Transposición (transposition)

Adapting a European directive into Spanish law so it applies in Spain.

Directiva (directive)

A European rule setting goals that each member state must incorporate into its own law.

Supervisión en base consolidada (consolidated supervision)

Oversight of an entire financial group, looking at all its entities together rather than each one separately.

Blanqueo de capitales (money laundering)

Giving legal appearance to money that comes from criminal activities.

royal decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries