Preferred, convertible bonds, guaranteed funds, derivatives, fiascos in the stock market … The malpractice in the commercialization of financial products in Spain seems doomed to repeat itself. The National Stock Market Commission (CNMV) turns on the alarms again. The stock market supervisor has detected cases in which the information obtained by the entities that provide investment services to evaluate the convenience or suitability of the operations of their retail clients "significantly overvalues their training, financial knowledge and investment experience". In some cases "this incidence affects a high number of clients".
The presiding body Sebastián Albella he assures in a note that he is acting, "even in sanctioning way", to correct this type of situations. In addition, it warns that during the next few months it will carry out a specific review action in this area "that will affect a large number of entities".
The CNMV stresses that an inadequate evaluation of the convenience or suitability of operations as a result of deficiencies or errors in the information obtained "may involve the sale or recommendation of products unsuitable for customers" or the failure to formulate warnings or handwritten texts, as required by law, in those that small savers recognize that they have been informed that a certain product is not convenient for them. "This, logically, can unduly facilitate the entity the placement of securities or financial instruments, both own and third parties."
The supervisor also reminds that although the assessments of convenience or suitability have to be made on a case-by-case basis, the entities must also adopt measures and perform "reasonable" actions to ensure that the information collected about the clients "is reliable" in general terms.