Spain’s financial regulator CNMV will implement a package of measures for UK-based financial institutions that wish to locate their business in Spain as a result of Brexit, in order to benefit from EU passporting.
The special programme aims to “facilitate and guide” these firms through the appropriate authorisation process and to create a “welcoming” as well as a “sensible and sound” supervisory environment, in a context in which new investment projects in the securities industry have” less of an incentive to be located in the UK”.
The CNMV said in a note released on Monday that it will create a “dedicated welcome programme” to facilitate incoming applications of investment and management firms based in the UK.
The plan’s measures include a “single contact point” for applicants, a fast-track authorisation process and English-speaking coaches to “to help applicants understand the applicable Spanish regulations and laws”. The Spanish financial regulator will also accept all relevant documentation presented in English without the need of any translation.
The straight-forward authorisation process for UK-based firms that are willing to relocate their business to Spain also includes standardised application forms, the possibility of electronic submission of documents and “advanced” internal models capabilities.
“Some entities have already expressed interest in using or continuing to use internal models for the determination of capital needs to cover counterparty and market risks,” the financial regulator said.
“The CNMV confirms it will be able to efficiently approve and supervise such models, including the counterparty risk case. The CNMV is reinforcing its own resources and capabilities in this field and has established a specific cooperation scheme with the Bank of Spain to ensure that the relevant tasks can be carried out smoothly and adequately henceforth,” it added.