PORTUGAL Law and Practice Contributed by: Pedro Cassiano Santos, Francisca César Machado, Chen Chen and Natalia Fedorova, VdA
1. Legal Framework 1.1 Key Laws and Regulations Legal Framework Applicable in Portugal The Legal Framework of Credit Institutions and Financial Companies (Decree-Law No 268/92, of 31 December) contains the main rules for Portu - gal’s banking sector, specifically for the activity of credit institutions and financial companies. It covers authorisation, registration, manage - ment and shareholder assessment, conduct rules, co-operation with authorities, prudential limits, supervision, corrective measures, deposit guarantees, and penalties. The principal Euro - pean texts are transposed in Portugal and are included either in the Legal Framework of Credit Institutions and Financial Companies or in sec - ondary, supplement laws and regulations. The provision of investment services by a Por - tuguese institution is subject to the Portuguese Securities Code (Decree-Law No 486/99, of 13 November), which incorporates the rules of MiFID II (Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014). As regards payment services and electronic money, Portuguese credit institutions and finan - cial companies must comply with the Legal Framework for Payment Services and Electronic Money, which incorporates PSD2 (Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015). The Portuguese Anti-Money Laundering and Counter-Terrorist Financing Law (Law No 83/2017, of 18 August) is also a key piece of legislation in Portugal, applicable to the bank - ing sector. EU regulations are directly applicable in Portu - gal, such as the Capital Requirements Regula -
tion (CRR) – Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013) and the Digital Operational Resil - ience Act (DORA) – Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resil - ience for the financial sector), among others. Banco de Portugal (the Portuguese Central Bank) establishes national requirements in its Notices, Instructions, and understandings. The guide - lines and Q&As issued by the European Central Bank (ECB) and by the European Supervisory Authorities are also usually adopted in Portugal, Under Portuguese law, supervision is divided between Banco de Portugal, the national compe - tent authority, which is responsible for supervis - ing banking activities in Portugal (including credit institutions and financial companies’ compliance with the anti-money laundering and counter- terrorist financing requirements), and the ECB, whose supervision enforces European legisla - tion (namely, the Single Supervisory Mechanism (SSM) – Council Regulation (EU) No 1024/2013 of 15 October 2023, and the SSM Framework Regulation – Regulation (EU) No 468/2014 of the ECB of 16 April 2014). by Banco de Portugal. Supervision Authorities The Portuguese Securities Market Commission ( Comissão do Mercado de Valores Mobiliários – CMVM) supervises the provision of investment services and the activity in capital markets, gen - erally.
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