Spain Prepares to Greet British Financial Companies
Spain’s Comisión Nacional del Mercado de Valores (CNMV) announced on Monday a new program designed to help financial services providers, including binary options brokers, expedite their moves from the UK to Spain. The program is a direct result of the UK’s “Brexit” vote and the uncertainty floating around the country’s access to Europe’s single market. Many companies have already expressed fears of being shut out of the market, especially financial services providers whose licenses can be “passported” to any member of the European Union.
Since the referendum, several binary options brokers, as well as other financial service providers, have been considering moves to different European countries, with several governments already planning to offer similar programs. For Spain, the government’s program is designed using these proposals as a base, but by providing other improvements, the CNMV hopes will make the country a more attractive destination. Officials foresee the new program not only helping UK-based companies, but also turning Spain into a new financial hub for Europe in the near future.
Spain Opens its Doors
The CNMV has created a new program aimed at converting Spain into a more attractive destination for financial services companies based in the UK that run the risk of losing access to the EU’s single market. As part of the new program, the Spanish regulator has prepared a fast-track process to help these companies transfer many of their existing regulatory documents easily while expediting the regulation process by months. Under the plan, FCA-regulated companies will be able to directly transfer many of their credentials to the Spanish application. Some of these requirements include capital buffers as well as outsourcing agreements in applicable cases.
As a result of “Brexit,” many UK-based binary options providers have started looking for greener pastures as a way to avoid losing access to the European Union, as well as avoiding costly regulation processes elsewhere. Countries such as France have leaped at the opportunity and announced plans for similar programs.
Spain is attempting to take those plans and upgrade them, making itself the most attractive option for these companies by offering a faster, simpler, and more transparent process. As part of the program, the CNMV will offer all of its registration documents and even educational resources on regulation in English. Additionally, they have provisioned for guides who will assist British companies through the registration process entirely in English and continue to work with them for six months after receiving approval.
A New Financial Center for Binary Options
Spain and the CNMV are looking at this new fast-track program as a way to return Spain to the forefront of financial services in the European Union. Despite its initial targeting of British companies, the CNMV hopes to expand the program to offer similar services to other countries in the hopes of attracting more business. Additionally, a simpler regulatory process should help binary options brokers who are looking at transparent frameworks that will enable them to operate across Europe.
For the industry, the new fast-track is an appealing proposition, as it marks a departure from the general sentiment against the industry across Europe. As countries such as France and Belgium shut their doors to the industry, Spain might become a new friendly haven. With the EU’s “passporting” system, Spanish regulation could grant binary options brokers a credible and effective regulatory framework while helping restore the industry’s image across the union.
For Spain, the possibilities are endless. Now that the country is in the midst of an economic revival following several years of financial trouble, the government is effectively seeking new ways to make that rebound sustainable.