Bill proposes protection for people reporting bank and market wrongdoing

Automatic summary, not yet reviewed

1. The bill would allow anyone who knows of or reasonably suspects a breach of bank supervision rules to report it to the Bank of Spain, with confidentiality guarantees and protection from workplace or contractual retaliation.
2. It would provide that all activity centers that a European bank headquartered in another EU country has in Spain count as a single branch, and that the Bank of Spain may request information from the relevant European supervisor when the bank is controlled by an EU parent company.
3. The bill would strengthen the supervision and inspection powers of the National Securities Market Commission, including access to electronic communications data held by telecom operators when there are reasonable grounds to suspect a breach, and only with prior judicial authorization.
4. It would create a reporting system before the National Securities Market Commission for breaches of market abuse rules and collective investment scheme rules, with written, phone or in-person channels, anonymous reporting allowed, and a response within three months.
5. The bill would make reports confidential and would ensure that reporting does not breach contracts or lead to unfair treatment at work; the National Securities Market Commission and the Bank of Spain would have to inform and assist whistleblowers about their rights.
6. The law would take effect the day after its publication in the Official State Gazette, except the rules on public information and confidentiality of bank reports, which would take effect three months later.

Who it affects

• Anyone reporting wrongdoing by banks or securities markets: Could report it to the Bank of Spain or the National Securities Market Commission with confidentiality and protection from retaliation.
• Employees of banks and financial firms: Reporting could not be used against them in labor or contractual terms.
• Banks and investment services firms: Would face more supervision and could have internal reports passed to supervisors.
• Banks from other EU countries operating in Spain: All their activity centers in Spain would count as a single branch.
• The National Securities Market Commission and the Bank of Spain: Would get stronger supervision powers and would have to handle and protect the reports they receive.

Words worth knowing

Supervisión prudencial

Oversight carried out by supervisors to check that banks are solvent and manage their risks properly.

Whistleblowing

Reporting wrongdoing by someone who knows about it from inside an organization.

CNMV

Comisión Nacional del Mercado de Valores, the Spanish public agency that oversees securities markets and the firms operating in them.

Texto refundido

A single, consolidated version of a law that gathers all its amendments into one text.

Libre prestación de servicios

A regime allowing a firm licensed in one EU country to offer its services in the others without opening a branch there.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries