The Cyprus Securities and Exchange Commission (‘CySEC’) with Circular C430, wishes to inform CIFs as to the current revised CMVM’s regulatory framework applicable with regards to promoting, distributing, marketing and/or making packaged retail investment and insurance products (the “PRIIPs”) available in Portugal and/or to investors in Portugal.
The new regulatory framework introducing four Regulations, was published on 10 November 2020 by the CMVM and reduces the duties of regular reporting of information to the CMVM; the simplified reporting obligations will take effect, as of 1st of July 2021.
With regards to the obligation to provide investors with key information documents (KIDs) and the obligations of PRIIPs marketing communications, the following CMVM requirements shall apply:
A. PRIIPS (KIDS)
A. PRIIPS (KIDS)
- CIFs must proceed with the prior submission of the relevant KID(s) to the CMVM, at least two days in advance of the date in which the KID(s) and/or PRIIPs are intended to be made available in Portugal and/or investors in Portugal;
- The obligation under point 1 above, is also applicable for KIDs produced and/or prepared and/or reviewed before the date of entry into force of the CMVM Regulation No.8/2018 (i.e. 10 December 2020);
- The submission of KIDs to the CMVM should be completed through CMVM’s Extranet subject to the CMVM Regulation No 3/2016 and articles 5(6) and 8(3) of the CMVM Regulation No. 8/2018. At this point it shall be noted that, the forms of reporting/upload of information are changed (CMVM Regulation No. 6/2020) and will take effect from 1 July 2021. In the event that the submission is made through alternative means (e.g. email), CIFs must provide an explanation and, as soon as possible, to successfully complete the submission through the Extranet (as per article 10(2) of CMVM Regulation 3/2016). Therefore, CIFs are required to be connected to the Extranet by filling the appropriate request form and by sending the request form to the CMVM (as per article 6(3) and Annex of the CMVM Regulation No. 3/2016).
- CIFs are required to comply with the legal and regulatory framework applicable to marketing communications, promoting or advertising materials.
Relevant for compliance with the above are, Article 9 of the Regulation (EU) No. 1286/2014, Article 4 of the Portuguese Law No. 35/2018 of 20 July, article 7(4) and 292 of the Portuguese Securities Code and articles 14-17 of CMVM Regulation No.8/2018, regarding requirements for information sources and expression of restricted use in marketing communications, minimum content, marketing communications with links to other websites and electronic trading platforms. - Advertising messages and/or marketing communications related to PRIIPs are subject to prior approval by the CMVM, which will decide within seven working days after receiving the fully instructed request;
- The advertising approval request of point 5 above, must be accompanied by the following, in accordance with article 4 of the Portuguese Law No. 35/2018, of 20 July:
- Application to request prior approval of advertising relating to PRIIPs (can be accessed through the link here);
- The draft advertising message;
- The material elements related to the media through which the advertising message is expected to be disseminated;
- The fundamental information document related to the PRIIP to be advertised, except when it has been previously notified;
- The advertising message can be used within six months after the date of its approval.
B. PRIIPS (Marketing Communications)