PORTUGAL Trends and Developments Contributed by: André Figueiredo and Hugo Nunes e Sá, PLMJ
The drivers are structural. First, interest margins will narrow as ECB rates fall, creating pressure with respect to efficiency and scale. Second, digitalisa- tion requires substantial investment in IT systems and cybersecurity – costs that are difficult for small institutions to bear independently. Third, international players view Portugal as an attractive entry point into the EU market, thanks to its cost competitiveness, regulatory environment and geographic connections. Finally, banks with exposure to Lusophone markets are seeking Portuguese platforms to consolidate their The regulatory agenda remains complex, with several major EU instruments coming into force with signifi- cant domestic implications. MiCA The Markets in Crypto-Assets Regulation (MiCA), effective from late 2024, provides the first harmo- nised EU framework for crypto-assets. In Portugal, the Bank of Portugal ( Banco de Portugal ) and the Portuguese Securities Market Commission ( Comis- são do Mercado de Valores Mobiliários CMVM) share supervisory responsibilities. MiCA establishes licens- ing requirements for crypto-asset service providers, mandates detailed disclosure through white papers, and introduces governance and capital rules. For Por- tugal, a country with a vibrant crypto community and several licensed providers already operating, MiCA brings long-awaited clarity but also raises compliance costs, potentially driving consolidation among smaller operators. DORA Equally transformative is the Digital Operational Resil- ience Act (DORA), which became applicable in Janu- ary 2025. DORA requires banks, insurers and other financial entities to implement comprehensive infor- mation and communication technology (ICT) risk man- agement frameworks, conduct advanced resilience testing and report incidents in a standardised manner. It also introduces EU-level oversight of critical third- party ICT providers, including cloud service giants. Portuguese institutions have had to reassess vendor contracts, invest in cyber capabilities and adapt gov- ernance structures accordingly. cross-border strategy. Regulatory landscape
The AI Act: risk-based AI governance The forthcoming AI Act will also affect financial ser- vices. By classifying AI applications according to risk, the regulation imposes transparency, data governance and human oversight requirements on high-risk sys- tems such as credit scoring and algorithmic trading. Portuguese supervisors are preparing sector-specific guidance, and institutions are beginning to audit their AI models for compliance. The NPL (Servicers) Directive One area where Portugal has lagged is the transpo- sition of the Credit Servicers and Credit Purchasers Directive (EU 2021/2167). The directive, intended to harmonise rules for the management and trans- fer of non-performing loans (NPLs), was due to be transposed by December 2023. Portugal missed the deadline, however, leading the European Commission to open infringement proceedings. For a country still managing legacy loan portfolios from past crises, the delay risks slowing the development of a more com- petitive NPL ecosystem. In any case, although trans- position has been in the works for quite some time, the procedure and corresponding legal framework is expected to be approved shortly and published by the Portuguese Parliament, which will trigger in-scope entities to make internal compliance efforts. Asset management: reporting obligations and prudential supervision – the new CMVM Regulation 3/2025 The main objectives of the new CMVM Regulation 3/2025 are to adapt the terminology and prudential reporting obligations to the changes introduced to the Asset Management Regime ( Regime da Gestão de Ativos RGA) by Decree-Law 89/2024 of 18 Novem- ber, and to clarify, adapt and simplify a wide range of other regulations relating to matters subject to CMVM supervision. Decree-Law 89/2024 of 18 November amended the RGA to clarify that large management companies and management companies of undertakings for collec- tive investment in transferable securities (UCITS) may, on an ancillary basis, invest in their own portfolios beyond their own fund requirements. This is permitted provided that any potential conflicts of interest aris- ing from such activity are appropriately addressed.
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