Financial Market Commission opens consultation process on new rule on banks’ early regularization

On August 29, 2023, the Financial Market Commission (“FMC”) published, for public consultation, the proposal of a new Chapter 1-19 of its Updated Regulations Compendium (the “Regulation Proposal”), with the purpose of ruling three key aspects regarding banking regularization whose regulatory treatment was pending, i.e.:

• the way and term for banks to communicate to the FMC the occurrence of any of the events indicative of financial instability or deficient management that may have occurred;
• the suitability and technical capacity requirements that the delegate inspectors and provisional managers shall meet, and
• the suitability and technical capacity requirements that the liquidator shall meet, in case of a bank´s mandatory liquidation.

Communication to the FMC of an event indicative of financial instability or deficient management

Should an event that indicates financial instability… Read more