hit tracker
Sunday, October 1, 2023
HomeLatest NewsThe CNMV asks to reinforce the control for the income of investment...

The CNMV asks to reinforce the control for the income of investment firm agents

Date: October 1, 2023 Time: 14:07:11

The National Securities Market Commission (CNMV) has asked investment companies and banks that hire external agents to set neutral remuneration criteria for the latter in order to prevent them from favoring some products over others when selling them to the clients

In a statement released this Wednesday, the stock market supervisor claims investment entities that use qualitative criteria to pay for the services of their agents based on compliance with the rules of conduct and not only quantitative variables. Typically, the remuneration of these professionals is completely variable and entities must introduce systems that avoid conflicts of interest to ensure that their agents act honestly, impartially and professionally with clients.

Detect deficiencies in their training

The agent often also acts as an advisor to the client and the CNMV has detected deficiencies in their training, as well as a large number of agents under the supervision of the same manager and little detail in the methodologies used for this task. Agents cannot advise independently, they must do so in accordance with the procedures and responsibility of the bank or investment company that hires them.

On the other hand, the market supervisor has detected that there are cases in which the agent is not registered in the register of the Bank of Spain, which provides services for several investment entities or does not identify the determinant for which it works. She has also observed that there are client presenters who collaborate with companies and banks and charge for it and do not appear as registered agents. These deficiencies, explains the CNMV, have been detected within the supervision activity carried out by the body and in general terms have already been solved by investment companies.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

Most Popular

Recent Comments