CMVM Portuguese Securities Market Commission

The Portuguese Securities Market Commission, commonly referred to as CMVM, plays a crucial role in ensuring that the securities market in Portugal is effective, efficient, fair, and transparent. Established in May 1991 in accordance with Decree-Law No. 142-A/91, CMVM is an independent public legal personality, enjoying full administrative and financial autonomy.

The Commission's mission is to supervise and regulate the market for financial instruments, as well as the agents operating in those markets, and to protect investors.

Fundamental Responsibilities

CMVM's responsibilities encompass a broad spectrum of areas within the financial system:

• Ensuring compliance with the Securities Code, as well as its other governing legislation.

• Applying sanctions when there is non-compliance.

• Detecting systemic risk to ensure the market is free to operate.

• Supporting the development of financial instruments and markets.

• Managing retail investors' complaints and offering easy access to relevant information.

• Mediating disputes between supervised agents and investors.

• Assisting when called upon by the government and the Ministry of Finance.

Autonomy of Operations

CMVM has complete structural and functional independence, permitting CMVM to develop its own operations and exercise its regulatory, supervisory, and sanctioning powers; it also has a structure (governing body), services (available persons), the law does not allow supervised entities to be used or governed externally, by the property, susceptible to use, and performs under sounds discretion.

Supervised Agents

CMVM supervises a wide range of natural persons and legal entities carrying out securities-related activities, which include:

• Securities issuers and financial intermediaries.

• Investment Funds and Venture Capital entities.

• Credit Rating Agencies and Auditors.

• Professional investors, executives with the market, and entities responsible for the management or efficient operation of the markets above.

• Clearing/settlement systems, and more.

All agents above are bound by law to provide full support and relevant information as required under a supervision notice.

Supervision

The CMVM performs on-site observations and remote supervision.Specialized teams will perform visits to financial intermediaries and regulated market operators to observe their activities.More frequently, they may conduct on-site supervision.Remote supervision comprises a continuous electronic oversight of other regulated activities.

Regular Functions

As a regular function of CMVM, the Commission can:

• Develop formal regulations and procedural rules.

• Determine and issue recommendations directed to a particular entity.

• Provide general solicitations on the provisions of law and respond to them publicly only at the law's threshold of legitimacy.

• Declare deliberate violation or non-compliance and sanctions to the public only within the law's threshold.

European System Integration

In addition to performing its domestic functions, it is a member of the European System of Financial Supervisors, the National Council of Financial Supervisors, and other Europe-wide financial supervisory systems. The Regulation operates within several limits, primarily focusing on the securities markets of Portugal, securities, and market stability, while adhering to the European pact.