The Commercial and Corporate Law Department of Belzuz Abogados S.L.P. – Portugal Branch has been closely following implementation of the legal regime applicable to the credit intermediary business and advising credit intermediaries on compliance with the legal and regulatory obligations now imposed.
Following on from previous publications on this subject, we draw attention to the recent extension of the transitional period, and to the progress of the Bank of Portugal in processing applications for authorisation and registration of credit intermediaries.
With the entry into force of Decree-Law no. 81-C/2017, of 7 July, which approved the legal regime establishing the requirements for accessing and engaging in the business of credit intermediary business and providing consulting services, access to the business of credit intermediary became dependent on authorisation by and registration with the Bank of Portugal.
With the aim of ensuring adaptation of natural and legal persons that were already operating as credit intermediaries on the date the new legal regime came into force, the legislation in question established a transitional regime that allowed any entity already acting as a credit intermediary to continue to conduct such business until 31 December 2018. At the end of that transitional period, natural and legal persons that had not obtained authorisation and registration to operate as credit intermediaries would be prohibited from doing so.
According to data published by the Bank of Portugal, as at 31 December 2018 5,314 applications for authorisation had been submitted, of which 4,261 were, on that date, being examined by the regulator.
Recognising that the length of the transitional period was not sufficient for the Bank of Portugal’s decision-making process, the Government decided to extend the transitional regime, thus ensuring that persons that had submitted applications for authorisation by 31 December 2018 could continue to operate as credit intermediaries until 31 July 2019 or until a decision of the Bank of Portugal issued on an earlier date, in which case that decision would prevail. Such entities are nevertheless obliged to comply with all legal and regulatory requirements in force in relation to the conduct of business of that nature.
According to the information published on the Bank of Portugal's website, by 19 January 2019 5420 applications for authorisation to operate as a credit intermediary had been submitted, of which 3922 were under consideration by the Bank of Portugal on that date. In all, 1295 applications for authorisation had been approved and 203 had been refused.
Source: Bank of Portugal
The Commercial and Corporate Law Department of Belzuz Abogados S.L.P. – Portugal Branch has professionals qualified to provide legal advice with a view to implementation of and full compliance with all the obligations and procedures established in the legal regime governing credit intermediaries, advising on the handling and presentation of the process for authorisation by the Bank of Portugal, including preparation and revision of the necessary documentation and information.
Belzuz Abogados SLP
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