Portuguese securities market regulator renders decisions in 17 administrative infraction cases in Q3 2018

Maria Nikolova

The CMVM imposed a total of €725,000 in fines and issued ten warning notices in the third quarter of 2018.

The Portuguese Securities Market Commission (CMVM) has earlier today posted its operating results for the third quarter of 2018.

During the three months to end-September 2018, the CMVM rendered decisions in 17 administrative infraction proceedings. Out of these, 7 concerned breach of financial intermediation duties, 5 related to the activity of collective investment entities, 4 related to breach of market information duties and 1 was for market trading duties. During the first nine months of the year, 38 administrative infraction proceedings were decided.

Decisions rendered between July and September comprise 15 very serious administrative infractions. A total of EUR 725,000 in fines was imposed and ten warning notices were issued. The proceeds of the fines imposed by the CMVM revert to the Investor Compensation Scheme as per the legislation in force.

During the third quarter, one case concerning market trading was decided in court, and four cases, as at end quarter, are court-pending.

In its annual report for 2017, the Portuguese regulator said 14 fines were imposed, resulting in a contribution of EUR 357,500 to reinforce the Investor Compensation Scheme, and 20 investigations were concluded, resulting in 4 reports to the Public Prosecutor’s Office. The CMVM was also heavily involved in the international assessment of the FATF on combating money laundering.

The regulator said it continued to devote attention to supervision of the sale of complex financial products and approval of advertising material, with particular focus on platforms where derivatives are traded on an over-the-counter (OTC) basis with underlying cryptocurrencies in 2017.

Let’s recall that the CMVM has recently revealed the preliminary findings from a survey conducted between June 18 and August 6, 2018. The findings show investors in crypto-assets (ICOs / Bitcoins) believe they have better financial knowledge than they actually have.

Usually, investors in ICOs / Bitcoins are younger, hold more shares and are more risk-taking. In particular, 47% of crypto investors are between 25 and 39 years old, and 62% admit to be risk-taking.

In terms of confidence, there is a somewhat worrying finding. More than half (63%) of investors in ICO / Bitcoins believe that they know enough about investments so that they do not need to consult a financial industry professional. This compares to 43% of the total sample of surveyed investors who believe so.

Read this next

Executive Moves

Christine Kiener joins Saxo Markets UK as Head of Institutional Sales

“I have been very impressed by the strong track record, clear strategic pathway and ambition of the Saxo business. I am excited to start working with the team to further grow the institutional footprint which has been established in the UK.”

Industry News

CFTC charges Rathnakishore Giri with $12m Bitcoin ponzi scheme

“Identifying and policing fraud in these emerging markets may be difficult or delayed in light of the agency’s limited visibility in these markets”, said CFTC Commissioner Kristin Johnson.

Institutional FX

AbbeyCross raises $2.47m to develop FX market infrastructure for EM currencies

Many EM currencies are currently traded without full-price discovery, creating an unlimited compliance and regulatory risk.

Digital Assets

YouHodler enhances Multi HODL: faster rates and execution, lower fees

“We know some traders mentioned freezing issues when opening or closing a Multi HODL deal. Now, those problems are completely gone”.

Industry News

ASIC bans Funds United Pty director for six years

The six-year ban will prevent Ms. Hutchinson from controlling an entity that carries on a financial services business, and performing any function within the industry.

Inside View

Brave new world: Recruitment of fintech talent in the new UK immigration environment

In this article, solicitor Denise Osterwald outlines what UK businesses should do to attract top talent from abroad.

Digital Assets, Interviews

FX goes Crypto: Exclusive interview with BVNK’s Jonathan Cumberlidge

BVNK is the new name in the City of London. Co-founded by ex-TradFi Chris Harmse, Balfour Group founder Jesse Hamson-Struthers, and ex-TrueLayer George Davis, the firm provides a single platform to bridge fiat and crypto together. 

Digital Assets

AAX ranked world’s second largest spot exchange, only behind Binance

Crypto trading volumes experienced their first surge in activity since March as the majority of digital assets began their recovery from the recent grim price action, according to a new report by Cryptocompare.

Digital Assets

Bitpay teams up with Cardlytics to provide 15% cashback rewards

Crypto payment service provider Bitpay announced a partnership with Cardlytics Inc (NASDAQ:CDLX), which it says will offer more rewards for BitPay cardholders on its platform.