The Regulation on the organizational requirements and the operating conditions of the operating entities of the financial system, the protection of the investor, market abuse and financial guarantee agreements

The Council of Ministers, on the proposal of Finance Deputy Chairman, Jordi Cinca, approved the Regulation on organizational requirements and operating conditions of the operating entities of the financial system, the protection of the investor, the Market abuse and financial guarantee agreements this Wednesday.

This text develops current legislation and complies with the implementation of the EU legal acts from the Monetary Agreement and the European Union.

This regulation implies a step forward in the homogenization of the legal framework required to the Andorran financial institutions insofar as it clarifies how certain obligations of the operating system of the financial system must be implemented. Likewise, this regulation constitutes an improvement in the protection of the clients of investment services.

In particular, it introduces improvements to the sections of organizational requirements, investor protection, conflicts of interest, information to clients and possible clients, best execution obligations and processing of customer orders, records, customer classification and criteria for considering complex and non-complex financial instruments.

The Law on the organizational requirements and operating conditions of the operating entities of the financial system, investor protection, market abuse and financial guarantee agreements was approved in 2013 and already transposed a portion of the European directives in this field. However, it became necessary to approve the modification of this text which entered into force in March 2019 to complete the application of these European directives.

Source: The Government of Andorra´s Department of Communication