Overhaul of Spain's financial system: markets, banks, insurance and customer protection

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1. A new company, the Sociedad de Sistemas, is created to unify the record-keeping, clearing and settlement of securities in Spain, merging the existing systems to provide better service at lower cost.
2. Central counterparty entities may be created. They stand between buyer and seller to guarantee that securities transactions are completed.
3. A new security called cédulas territoriales is created. Banks can issue these fixed-income bonds, backed by the loans the bank has granted to public authorities.
4. Electronic money institutions are regulated: only credit institutions authorized as such may issue electronic money, under the supervision of the Bank of Spain.
5. Three Commissioners are created to defend financial services customers, and banks, insurers and investment firms must handle and resolve customer complaints.
6. If you have a traffic accident in another European Union country, you can claim compensation from the insurer or from its representative in Spain, who must respond within three months.
7. Transparency in securities markets is strengthened: the definition of insider information is expanded, companies must disclose relevant information, and price manipulation is banned.
8. The Bank of Spain's Credit Risk Registry (Central de Información de Riesgos) becomes a public service that collects credit risk data. Data is kept for ten years, and affected people can access it and request corrections.

Who it affects

• Customers of banks, insurers and investment firms: They get new defense bodies, and the entities must handle their complaints.
• People in traffic accidents abroad: They can claim compensation in Spain through the insurer's representative.
• Financial institutions: Their operating, supervisory and sanctioning rules change.
• Small and medium-sized businesses: They get better financing options, such as assigning credits against public authorities.
• People with loans or credit: Their credit risk data appears in the Credit Risk Registry, and they can consult and correct it.

Words worth knowing

Compensación y liquidación de valores (clearing and settlement of securities)

The process of exchanging money and securities after buying or selling on the stock market.

Entidad de contrapartida central (central counterparty)

A company that stands in the middle of each securities transaction to guarantee it completes even if one party fails.

Cédulas territoriales (territorial bonds)

Fixed-income bonds issued by banks, backed by loans the bank has granted to public authorities.

Dinero electrónico (electronic money)

Monetary value stored electronically, issued when funds are received and accepted as payment by businesses other than the issuer.

Información privilegiada (insider information)

Non-public information that, if known, could move the price of a security in the market.

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