12 December 2016

Financial Times: Spain’s financial watchdog looks to lure London business to Madrid

Spain’s stock market and financial regulator is rolling out the red carpet for London-based institutions looking for a post-Brexit home, with a battery of measures designed to lure wavering companies to Madrid.

These include fast-track authorisation for financial companies relocating to the Spanish capital, the ability to submit all documentation in English and a commitment not to impose regulatory requirements beyond those set down in EU law.

In a statement released on Monday, the Comisión Nacional del Mercado de Valores (CNMV), the regulator, said it was “determined to contribute to making Spain the most appealing option for investment firms considering a move from the UK to another EU country”.

The Madrid-based regulator added that it was pitching above all to businesses forced to leave the UK because of the loss of so-called passporting rights — the ability to use one EU country as a base to provide services into the rest of the bloc. [...] The regional government, for example, has set up a special programme and a dedicated London representative to lure companies from the City. [...]

The CNMV is also hoping to make Madrid an attractive prospect from the regulatory point of view. The watchdog’s main responsibility is the oversight of the stock market but it also acts as the prudential supervisor for investment companies, broker-dealers and dealers, and portfolio managers.

The CNMV says it stands ready to offer a “single contact point ” for companies ready to move to Madrid, along with English-speaking coaches “to help applicants understand the applicable Spanish regulations and laws”. The regulator also plans to establish a fast-track authorisation process that will signal likely approval within two weeks of an application. Final approval will be provided no later than two months after pre-authorisation.

In addition, the CNMV says it is ready to “efficiently approve and supervise” internal models to determine capital needs.

Full article on Financial Times (subscription required)

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