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Wednesday, May 25, 2022
HomeLatest NewsCNMV is finalizing a code of conduct for large funds that own...

CNMV is finalizing a code of conduct for large funds that own Ibex.

Nearly a year after the establishment of its expert group, in National Securities Market Commission (CNMV) links the latest facets of a code of conduct geared towards large institutional investors, mainly international funds, pension or insurance groups, with more and more power in the Spanish stock market. According to the regulator’s forecast, this work will be submitted for public comment during this month. May or next June collect the latest opinions and prepare everything before the end of the year. According to various sources, the control document, as it is called in the industry jargon, is very advanced and has “friendly” with the investors to whom this paper is addressed.

body chaired by Rodrigo Bonaventure has already held up to three different meetings – the last on the eve of the Easter holidays – with a committee of experts specially created for this mission last June. This group of experts is very heterogeneous and consists of members of the main consulting companies (HEY, Deloitte, KPMG D PVC), large proxy advisors (corporationEuropean alliance Proxinvest) and trustees (Georgeson D Morrow Sodali). The rest of those selected are members of the Spanish Banking Association (AEB), Inverco, Unespa, CECA and the Association of Spanish Issuers.

Herself Vice President of CNMV, Montserrat Martinez Pareraslipped the progress of this work on Wednesday, at the closing event organized by Spanish issuers, where he stated that this investor attraction code had only “weeks” to see the light of day. The event, which was attended by various leaders of the regulatory ecosystem in Madrid, served to discuss a regulatory tsunami that will affect good corporate governance practices in the coming years.

CNMV management will be holding public consultations to gather input from key institutional investors. for a period of three months. After this calendar, the code of conduct will already be solid, although it will always be optional character. The intention is for it to be ready before the end of fiscal year 2022, although Buenaventura admitted in late February in a CNMV activity plan presentation that the launch could finally begin in 2023.

The Spanish stock market is increasingly dominated by large-scale investment funds Vanguard and sovereigns like Norway (Norway) or TsKPIB (Canada). Thanks to small holdings that range from 3 to 10% of the share capital of a listed company, they occupy a non-dominant but influential position, as is the case with black rock in Repsol and Iberdrola, where are the first and second shareholders, respectively. Last Spanish share holding annual report who develops BME found that the presence of international investors in the national stock market was “very close to all-time highs”.

The Spanish stock market is increasingly dominated by foreign capital in the hands of institutional investors.

Some of these large investors have already adopted codes of conduct from third countries. In the United Kingdom, where the first regulation of this type was signed more than five years ago, 74 investors totaling £33bn under management (€39,000 million at the exchange rate) signed the latest version of this code of conduct in March last year. The initial reception was different in another pioneer country, Japanwhich in 2016 hardly aroused enthusiasm among large asset holders.

Purpose of CNMV, which has already taken on this mission during the previous mandate Sebastian Albella – without the possibility of holding it due to the coronavirus – this is that these entities are increasingly involved in the management of the company and thus take a proactive stance that is governed by good corporate governance (ESG) criteria. For example, in other countries, large investors must find out the reason for buying or selling securities in a company, while in Spain today this task is limited only report the position when the corresponding threshold is exceeded in company.



Source: www.lainformacion.com

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