BdP, CMVM and ASF reinforce cooperation with signing protocols

Na statement on its website, Banco de Portugal (BdP) states that the signing of the protocols with Insurance and Pension Funds Supervisory Authority (ASF) and Securities Market Commission (CMVM) took place today.

The trilateral protocol, referred to in the statement, aims to establish “cooperation mechanisms in crisis management by defining the scope, objectives and mode of operationalisation of collaboration and exchange of information between the three authorities in this field”.

The three entities recognise the need to strengthen “some priority axes” in trilateral cooperation, despite the mechanisms for cooperation and exchange of information agreed bilaterally or in the context of the National Council of Financial Supervisors (CNSF).

With this protocol, the three authorities will operate cooperation mechanisms “considered essential in matters of corrective or early intervention, provisional administration and resolution”.

“The protocol further provides that the necessary articulation between the three authorities must take into account the national and European levels of action, including those defined in the framework of participation in the Single Supervisory Mechanism and the Single Resolution Mechanism and the existing constraints in this area,” the statement states.

On the other hand, bilateral protocols update the terms of cooperation, mutual consultation and periodic and non-periodic exchange of information between supervisors with a view to “strengthening resilience and stability of the financial system, promoting the smooth functioning of the market and strengthening the protection” of its actors.

Regulators point out that the update will allow modernizing the institutional and procedural framework for regulatory and supervisory evolution, increasing digitization, reconfiguration of business models and supervised structures, as well as threats to the security of information systems.