CMVM publishes annual asset management circular with new rules

Portuguese Securities Market Commission ("CMVM") Circular 002/2025 presents the supervisory priorities, future strategic vision, and new regulatory requirements for market participants.

The year 2025 marks the start of the CMVM’s Strategic Plan for 2025-2028, which is based on the following vision: “A capital market that creates value and well-being.” This plan establishes five major strategic objectives that will guide the CMVM’s actions until 2028: 

• Results-oriented supervision
• Promoting regulatory stability and proportionality
• Boosting investor confidence
• Mobilization for a more developed capital market
• Empowering and streamlining the CMVM 

Following up on strategic priorities, the CMVM has identified the key areas that will see the greatest supervisory focus throughout 2025. It will continue to strengthen its supervision of management entities, covering topics such as the following: 

• Prudential requirements and marketing practices of venture capital AIUs

The CMVM will strengthen its supervision of venture capital AIUs, ensuring that they comply with prudential requirements, legal investment limits, and the policies established in their statutes.

• Transparency in disclosing profitability and risk

The CMVM will assess the compliance of UCIs’ promotional communications, ensuring that they provide accurate and transparent information to investors.

• Application of the value for money principle in UCITS

Following on from Circular 001/2025, the CMVM will continue to monitor whether the financial products marketed offer returns compatible with the costs charged and whether they are suitable for the target public.

• Supervision of depositories

UCI depositaries will be subject to stricter monitoring, focused on their supervisory and compliance roles.

• Participation in joint supervision with the European Securities and Market Authority (“ESMA”)

The CMVM will collaborate with ESMA in joint supervisory actions, mainly related to the compliance and internal audit departments of management entities.

• Analysis of the availability and remuneration of management and supervisory bodies

An assessment will be made of the time allocation and remuneration of the members of management and supervisory bodies, ensuring that incentives are adequate and that the governance of management companies complies with regulatory requirements.

• Review of management entities’ self-assessment reports

The CMVM will pay special attention to the quality of the self-assessment reports of the governance and internal control systems. It will analyze the deficiencies identified and the effectiveness of the corrective measures adopted.

• Supervision on the prevention of money laundering

The CMVM will intensify supervision of the implementation of measures to prevent money laundering and terrorist financing, focusing especially on the management of real estate AIUs.

• Initiatives to improve the quality of reported information

The CMVM will adopt measures to improve the quality of reported data, including:

1. a review of unsuccessful attempts to upload information;
2. the disclosure of the most common errors in financial reports; and
3. clarification sessions on reporting obligations.    

• Implementation of the DORA Regulation

Supervision will be strengthened to ensure compliance with the DORA Regulation (Digital Operational Resilience Act), focusing on:

1. information and communication technology (“ICT”) risk management;
2. handling cybersecurity incidents; and
3. managing risks associated with ICT service providers.

The CMVM will monitor the implementation of various national and international regulatory standards that impact asset management: 

• At national level

1. DORA Regulation - Applicable from January 17, 2025, it establishes uniform requirements for managing technological risks in the financial sector. 
2. MiCA Regulation (Markets in Cryptoassets Regulation) - It enters into force on December 30, 2024, establishing specific rules for offering and trading cryptoassets. 
3. Transposition of the AIFM and UCITS Directives - The CMVM is preparing to adapt national regulations to the new European rules on alternative investment fund management entities and collective investment undertakings. 

• At international level

1. Retail Investment Strategy (RIS) - The CMVM is following discussions on new European rules affecting product governance and cost transparency of financial products. 
2. ESG Ratings Regulation - Applicable from July 2, 2026, it imposes transparency requirements for assessing the ESG risk of investment funds. 
3. Changes in the settlement of financial transactions - ESMA expects the settlement cycle to be reduced from (T+2) to (T+1) by October 11, 2027, impacting financial intermediaries and institutional investors. 

Sustainability supervision will be intensified. Gaps have been identified in the information disclosed by funds classified under articles 8 and 9 of the SFDR Regulation, which will require greater accuracy and transparency.

The CMVM also published the Annual Report on Capital Market Exposure to Climate Risk and updated the Sustainability Guide (January 2025), providing a benchmark for supervised entities to comply with sustainable finance requirements. 

In 2024, the CMVM conducted various supervisory actions and published reports and circulars detailing good practices and recommendations for the sector, including: 

• the supervision of management entities and UCIs, focusing on the suitability of the products offered, compliance processes, and the quality of the information disclosed; 
• monitoring the transparency of UCITS costs, resulting in the publication of Circular 001/2025 on Value for Money; and
• Prevention of Money Laundering supervisory actions, ensuring that management entities adopt robust risk mitigation measures. 

Following up on the 2024 initiatives, in 2025 the CMVM will strengthen its supervision of transparency in the marketing of financial products and the regulatory compliance of management entities.