Amendments to the General Regime of Credit Institutions and Financial Companies ("RGICSF")

Law no. 23-A/2022 of December 9

This law transposes the following European rules into Portuguese law:

(a) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019, hereinafter "Directive (EU) 2019/878", amending Directive 2013/36/EU (on access to the activity of credit institutions and to the prudential supervision of credit institutions and investment firms), as regards exempt entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures; and

(b) Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019, hereinafter "Directive (EU) 2019/879", amending Directive 2014/59/EU (establishing a framework for the recovery and resolution of credit institutions and investment firms), as regards the loss-absorbency and recapitalization capacity of credit institutions and investment firms, and Directive 98/26/EC.

The aim of this legislative project (Banking Activity Code) is to bring together several special regimes that are currently dispersed, in which the transposition of EU Directive 2019/878 and EU Directive 2019/879 is of particular importance, as both directives introduce a relevant set of amendments to European legislation, which need to be transposed into national law.

In this sense, the law under analysis introduces amendments to the following diplomas: the General Regime of Credit Institutions and Financial Companies ("RGICSF"), the Portuguese Securities Code ("CVM") and related legislation (namely, Decree-Law 221/2000, of September 9, Decree-Law 199/2006, of October 25 and Law 63-A/2008, of November 24) , as well as the legal regime of the conception, commercialization and provision of advisory services regarding structured deposits (approved in annex to Law no. 35/2018 of July 20), and the Legal Framework of Covered Bonds ("RJOC" approved by Decree-Law No. 31/2022 of May 6).

As regards the RGICSF, the following news and amendments should be highlighted:

  • The rules on the registration and authorization process, and on the other hand, on the procedure for the revocation of the authorization of credit institutions.
  • The content of the remuneration policies of credit institutions, namely regarding the categories of employees covered, the calculation criteria for the fixed component of remuneration and the obligation to adopt a gender-neutral policy.
  • Capital requirements and additional own funds.
  • The rules on the individual and group recovery plan of credit institutions, in particular in relation to their content, elements, review and updating, as well as the rules governing the regime of resolution plans, solvency assessment criteria and recapitalization processes.
  • The rules on intra-group financial support mechanisms for credit institutions.
  • The rules governing financial holding companies and mixed financial holding companies, particularly with regard to the registration and authorization process and the supervisory powers of the Bank of Portugal.
  • The methods for calculating credit institutions' risk, namely interest rate and operational risk.

Law 23-A/2022 of December 9 came into force on the day following its publication.

To access to the entire wording of Law no. 23-A/2022, of December 9: Lei n.º 23-A/2022 | DRE

For more information on this subject, please contact:
Miguel Cordeiro

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