Review of the Spanish Securities and Exchange Commission’s 2020 Activity Plan

The current state of emergency and the resulting measures implemented have led the Spanish Securities and Exchange Commission (the “CNMV”) to review its Activity Plan for 2020 to analyze whether it remains valid.

The CNMV’s Activity Plan for 2020 with the targets the supervisor had set for the year was presented on February 12. However, the spread of COVID-19 and the measures implemented after the Plan was published have significantly increased uncertainty and are seriously impacting the markets.

In these circumstances, the CNMV has reviewed its Activity Plan. In addition, it has assessed whether targets that were not initially envisaged should be included, in view of the current situation, and it has assessed the previously set targets.

The CNMV considers it appropriate to include the following two targets in its Plan under the current circumstances:

It plans to approve the adaptation of the CNMV’s Contingency Plan based on a remote working model in the second half of the year, including the current experience. With regard to supervision of financial intermediaries, Technical Guidelines 4/2017 for assessing the knowledge and skills of staff who give information and advice will also be amended in the second semester to explicitly include the online testing system permanently.

The targets the CNMV has decided to postpone notably include:

First, analyzing and preparing a report on a possible best practices code to encourage shareholders’ long-term commitment.

Second, preparing a situation report and possible IPO driving measures and analyzing the liability system for the information contained in issue and flotation prospectuses. However, progress will continue to be made in this area as far as possible, and publication of another document in the second half of 2020 is not being ruled out.

Finally, the conference on empirical studies on remuneration systems and incentives for executives and directors of listed companies has been postponed until 2021.