Resumo I9A

Created under the responsibility of BCV’s Governor, the Securities Market Audit Office (AGMVM) is the service responsible for supervising the securities market, in accordance with Article 5 (1) of the securities code approved by decree-law. No. 1/2012, dated 27 January, republished on 3 April. Its mission is to supervise and regulate the securities and derivative financial instruments markets (traditionally known as “stock exchange markets”) and the activity of all agents that operate on them.

The Securities Market Audit Office (AGMVM), its composition, duties, as well as the incompatibilities of its members, are contained in Chapter II of Legislative Decree No. 1/2012, dated 27 January, republished on 3 April. The Securities Market Code aims to establish the fundamental principles and provisions governing the organization, operation and transactions in the securities markets and the activities that all agents involved in these markets carry out.

AGMVM Objectives 

The AGMVM pursues the following objectives:

• Investor protection;

• Efficiency and regular operation of markets;

• Information control;

• Risk prevention;

• Prevention and suppression of illegal assets.

Supervision and Regulation

Regulation consists in the application of rules on the operation of an economic sector and/or on the operation of markets and the activity of the entities that operate in them.

The AGMVM regulates the operation of the securities markets, public offerings, the activities of all entities operating in those markets and, in general, all matters relating to this sector.

AGMVM’s supervision and regulation consists in:

• Permanently monitoring the activities of people or entities that operate in the capital market with the aim of detecting illegal acts, in particular trading on the stock exchange;

• Monitoring compliance with the rules;

• Controlling the activity of the Stock Exchange and of all players in the securities market;

• Checking the fulfillment of the public reporting requirements imposed on the issuers of securities admitted to trading on the Stock Exchange;

• Determining the unofficial admission to listing of securities;

• Granting registration to public subscription offers and public offerings;

• Authorizing or prohibiting takeover bids;

• Regulating on matters that are assigned to it by law;

• Carrying out all proceedings that help to attribute responsibilities and establish disciplinary procedures, as well as reporting to judicial authorities any irregularities in the operation of the securities market that are liable to criminal proceedings;

• Applying the fines referred to in this Code and complementary legislation;

• Exercising other powers assigned to it by the legislation or regulation applicable to the securities market, as well as those that are necessary for the effective performance of its duties;

• Checking the regular, efficient and credible operation of the securities markets and the entities operating in them, and protecting investors.

Persons and Entities subject to the AGMVM’s Supervision

The following persons and entities are subject to the AGMVM’s supervision

• Issuers of securities;

• Financial intermediaries;

• Entities that manage markets, settlement systems and centralized securities systems and entities whose corporate purpose is to clear transactions in commodity derivatives markets;

• Institutional investors;

• Investment funds;

• Holders of qualifying holdings in public companies;

• Other persons who carry out activities related to securities, either in a professional or accessory capacity.

Cooperation Objective

Through cooperation, the AGMVM seeks to:

• Make supervision more effective;

• Approach its performance to the practices followed by institutions that carry out the same duties in other countries;

• Combat fraudulent international acts.

Investor Protection

In the financial sector and, in particular, in the capital markets, the mechanisms for protecting those who have the greatest difficulty in protecting their customers – investors – have been strengthened. This requirement results from the sophistication and technical complexity that have accompanied the development of the markets.

The AGMVM protects investors, either by permanently carrying out the supervisory and regulatory duties assigned on it by law, or by developing services that aim to ensure direct support to the public in general and investors in particular.