Summary of CySEC's Circular C433

Memo #09-2021
CySEC Circular No: C433

Date: 18/03/2021

Subject: Requirements of the Portuguese Securities and Exchange Commission (the ‘CMVM’) regarding the appointment of tied agents in the territory of Portugal
Purpose: To inform CIFs which intend to appoint Tied Agents in Portugal about requirements of Portuguese CMVM.

In Summary:

CySEC has issued the Circular C433 on 16/03/2021 to draw the attention of the Cyprus Investment Firms (the ‘CIFs’), which intend to appoint Tied Agents to offer their services in the territory of Portugal, to the Portuguese Securities and Exchange Commission (CMVM) regulatory rules regarding the persons that are allowed to provide such services.

Article 29 of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 (“MiFID II”) contains detailed provisions regarding the appointment of Tied Agents by investment firms.

According to the Portuguese law, as stated under article 289(2) of the Portuguese Securities Code, only financial intermediaries, operating according to professional standards, may perform financial intermediation activities.

Also, according to article 292 of the Portuguese Securities Code, advertising and prospecting aimed at agreeing financial intermediation contracts or collecting information on current or potential clients may only be carried out by: a) A financial intermediary authorised to carry out the activities in question; or b) A Tied Agent, pursuant to articles 294-A to 294-D of the Portuguese Securities Code.

This Circular C433 refers specifically to the relevant Portuguese CMVM’s regulatory rules.

With this Circular C433, CySEC advises CIFs to consult with their legal consultants regarding the necessary actions/measures required to ensure compliance with CMVM’s regulatory requirements.

Read the CySEC Circular C433

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