Authorizes The Government, In The Context Of The Transposition Of Directive No. 2013/36/eu Of The European Parliament And Of The Council Of 26 June, To Carry Out The Amendment To The General Scheme Of Credit Institutions And Financial Corporations, App...

Original Language Title: Autoriza o Governo, no âmbito da transposição da Diretiva n.º 2013/36/UE, do Parlamento Europeu e do Conselho, de 26 de junho, a proceder à alteração ao Regime Geral das Instituições de Crédito e Sociedades Financeiras, aprovado pelo Decreto-Lei n.º 298/9

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PRESIDENCY of the COUNCIL of MINISTERS 1 Proposal of law no explanatory statement Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, relating to the activity of credit institutions and on the prudential supervision of credit institutions and investment firms (policy no. 2013/36/EU) and the Regulation (EU) no 575/2013 of the European Parliament and of the Council June 26, 2013 (Regulation No. 575/2013), implement in the EU the Basel III framework replacing Directive No. 2006/48/EC of the European Parliament and of the Council of 14 June 2006, relating to the activity of credit institutions and to the exercise thereof and no policy 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions, which had already been placed, in recent years, a number of amendments. Thus, the directive no. 2013/36/EU, enshrined a set of changes in matters relating to the activity and supervision of those institutions that complies with the internal legal order to transpose into national legislation the changes necessary for the implementation of the standards laid down in the same.



2 PRESIDENCY of the COUNCIL of MINISTERS with regard to corporate governance, and in particular for the exercise of functions of the members of the management and supervisory bodies, Policy No. 2013/36/EU establish a set of requirements regarding the suitability of these members with those functions, as well as of positions whose holders, who do not belong to the management and supervisory bodies , exercise functions that give them significant influence over the management of the credit institution or financial society regarded as essential, in terms of suitability, qualification, professional experience and availability, wishing to contribute to the sound and prudent management of those institutions, and the strengthening and adaptation of the rules contained in the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 289/92 , of 31 December (General Regime). The policy no. 2013/36/EU, determines also the obligation of credit institutions to establish and maintain remuneration policies and practices congruent with effective management of the risks thereof, applicable to employees whose professional activities have a significant impact on the risk profile of these same institutions. To this end, the directive no. 2013/36/EU, determined a set of standards applicable to the structure and composition of remunerations, in particular their variable component, which will have to be properly implemented in the national legal system, although useful already, albeit less densified, of Decree-Law No. 104/2007, of 3 April, as amended by Decree-Law No. 88/2011 , of 20 July, which transposed into the internal legal system Directive No. 76/2010/EU of the European Parliament and of the Council of 24 November 2010 (CRD III). Results, still, no policy 2013/36/EU, the duty of Member States to ensure the existence of complaint mechanisms of violations and to regulate the respective treatment procedure of these complaints by ensuring, inter alia, the respective confidentiality and establish mechanisms to ensure the protection of the whistleblower.

PRESIDENCY of the COUNCIL of MINISTERS 3 Additionally proves to be necessary to extend the measures that the Bank of Portugal corrective may impose in the event of non-compliance of rules governing the activity of credit institutions and financial corporations, what motivates also several adjustments to the general scheme in this respect. It is appropriate to enable the Bank of Portugal to carry out the creation and maintenance of a database of existing bank accounts in the banking system, determining the scope and extent of same as well as the conditions under which the information there constant can be transmitted to other entities. The policy no. 2013/36/EU standards relating to the sanctions regime includes, by defining a list of infractions and sanctions in case of breaches of the obligations laid down in the said directive, establishing criteria for determining the extent of the fine and rules on the disclosure of the condemnatory decisions that must be made to the general scheme and in law No. 25/2008 , June 5, as amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, of 6 February, establishing preventive and repressive measures to combat laundering of illicit provenance advantages and the financing of terrorism , which justifies this legislative initiative. Additionally, looking to make the sanctions regime as provided for in General more appropriate and efficient Regime, are still the same changes with the aim of contributing to the streamlining of the above process and concurrent robustecimento the power of intervention of the Bank of Portugal, without, however, prejudice the rights and guarantees of the accused's defence.

PRESIDENCY of the COUNCIL of MINISTERS 4 without prejudice to all the legislative amendments that introduce the scheme are usually object relative reserve legislative powers of the Assembly of the Republic and, to that extent, justify the present Bill of legislative authorization, it was considered appropriate to include here the materials for assessing the adequacy of those responsible for corporate governance and institutions guiding rule of the remuneration policy to be defined by those because the relevance of these themes, especially in the current economic and financial context, advises a broad and extended discussion on the amendments that aim to enshrine in the national legal order and which are intended ultimately to promote the stability of the national financial system, in the framework of the competences attributed to the special Bank of Portugal by law No 5/98 of 31 January as amended by decree-laws Nos. 118/2001, of 17 April, 50/2004, of March 10, 39/2007, of February 20, 31-A/February 10, 2012, and 2013/142, of October 18. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following Bill, with priority and urgency request: article 1 Object 1-is granted the Government legislative authorization for, in the context of the transposition into the internal legal order of the Directive n° 2013/36/I, of the European Parliament and of the Council June 26, 2013 (policy no. 2013/36/EU) proceed to the amendment to the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December (General Regime), as regards: a) the adequacy of the requirements for members of management and supervisory bodies and the Office-holders with essential functions of credit institutions and financial corporations;

PRESIDENCY of the COUNCIL of MINISTERS 5 b) remuneration policy requirements applicable to employees of credit institutions and financial corporations; c) the establishment of mechanisms for reporting violations of credit institutions and financial corporations; d) the cast of corrective measures applicable to credit institutions and financial corporations that do not comply with the rules governing their activity; and the obligation to) credit institutions and financial corporations carry out the registration and reporting of transfer operations which are beneficiary entities based in offshore legal system; f) the creation of a database of accounts, showing information about the existing bank accounts in the banking system, organized and managed by the Bank of Portugal; g) the adaptation of the system of social ordering of mere illicit general arrangements, including any adjustments needed to ensure the transposition of Directive No. 2013/36/EU. 2-is also granted the Government legislative authorization for, in the context of transposition of Directive No. 36/EU/2013, amend the provisions of the sanctions regime of law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012 , 7 November, and 18/2013, of 6 February.



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3-is also granted the Government legislative authorization, to subject the members of the management and supervisory bodies and the people who run effectively the activity of entities subject to the prudential supervision of securities market Commission pursuant to paragraph 1 of article 363 of the securities code, approved by Decree-Law No. 486/99, of 13 November adequacy requirements set out, in paragraph 1 (a)) of paragraph 1 with the necessary adaptations, changing to the effect such a code, Decree-Law No. 357-B/2007, of October 31, as amended by Decree-Law No. 52/2010 of 26 June; Decree-Law No. 357-C/2007, of October 31, as amended by decree-laws Nos. 52/2010, from June 26, 18/6 of February 2012, and 2014, 40/18 March, and Decree-Law No. 40/2014, of 18 March. 4-For the implementation of the measures provided for in this Act and without prejudice to paragraph 1, the Government is authorized to make the necessary changes in the following diplomas: a) general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December; (b)) the securities code, approved by Decree-Law No. 486/99, of 13 November; c) Law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, 6 February; d) Law No. 28/2009, of 19 June; e) Decree-Law No. 260/94, of 22 October; f) Decree-Law No. 72/95, of 15 April, as amended by decree-laws Nos. 285/2001, of 3 November, and 186/2002, of August 21; g) Decree-Law No. 171/95, of 19 July, amended by Decree-Law No. 186/2002, of August 21;

PRESIDENCY of the COUNCIL of MINISTERS 7:00) Decree-Law No. 211/98, of July 16, as amended by decree-laws Nos. 19/2001 of 30 January, and 309-A/2007, of 7 September; I) Decree-Law No. 357-B/2007, of October 31, as amended by Decree-Law No. 52/2010 of 26 June; j) Decree-Law No. 357-C/2007, of October 31, as amended by decree-laws Nos. 52/2010, from June 26, 18/6 of February 2012, and 2014, 40/18 March; k) Juridical Regime of Payment services and Electronic currency, approved by Decree-Law No. 317/2009, of 30 October, amended by Decree-Law No 242/2012, 7 November; l) Legal Regime of central counterparties, approved by Decree-Law No. 40/2014, of 18 March. Article 2 purpose and extent of legislative authorization regarding the adequacy requirements of the members of the management and supervisory bodies and the Office-holders with essential functions 1-The use of the authorisation conferred by subparagraph (a)) of paragraph 1 and paragraph 3 of article 1, can the Government establish the suitability criteria relating to the exercise of functions of the members of the management and supervisory bodies of credit institutions and financial companies set: a) the requirements and the requirements of good repute, professional qualification, independence and availability that are bound in the exercise of their functions, as follows: PRESIDENCY of the COUNCIL of MINISTERS 8 i) provide that in the case of collegiate organs, the individual assessment of each Member must be accompanied by a collective appreciation of the organ, in order to verify that the body itself considering their composition, brings together professional qualification and availability sufficient to comply with the respective legal and statutory functions in all relevant areas of activity; II) provide that its assessment follows the principle of proportionality, and should take into account, in particular, the nature, size and complexity of the activity of the credit institution or finance company and the requirements and responsibilities associated with the specific functions to be performed; III) provide that the internal politics of selection and evaluation of the members of the management and supervisory bodies should promote the diversity of skills and competences necessary for the exercise of the function, setting goals for the representation of men and women and devising a policy to increase the number of people under-represented gender in order to achieve these objectives; IV) Establish the competence of the General Assembly to define and adopt a policy of selection and evaluation of the fitness of the members of the management and supervisory bodies, containing at least the identification of those responsible for assessing the adequacy of those members, the evaluation procedures adopted, the requirements of fitness required, the rules on prevention, communication and curing of conflicts of interest and the available training facilities;

PRESIDENCY of the COUNCIL of MINISTERS 9 v) Determine the duty of the people to designate to the management and supervisory bodies submit to the credit institution or finance company prior to his appointment, a written statement where all relevant information needed for the assessment of their suitability, including those required under the authorization process of the Banco de Portugal and who are obliged to communicate any facts or supervening changes; vi) require that the results of any assessment or reassessment conducted by credit or finance company must appear on a report that, in the case of people for elective office, must be made available to the General Assembly within the framework of respective preparatory information; VII) require that the members of the management and supervisory bodies demonstrate that they possess the skills and qualifications necessary for the performance of their duties, acquired through academic qualification or specialized training appropriate to the position to exercise and through professional experience with duration and levels of responsibility that are in line with the characteristics, complexity and size of the credit institution or finance company as the risks associated with the activity for this developed;



PRESIDENCY of the COUNCIL of MINISTERS 10 viii) Determine that if for any reason no longer met the requirements of good repute, professional qualification, independence or availability of a given member or as a whole, the Board of directors or supervisory board, the Bank of Portugal may adopt the following measures: (i) to set a deadline for taking the appropriate measures for the fulfilment of the requirement at fault; (ii) suspend the authorization for the exercise of functions of the Member concerned, by the amount of time required for curing the lack of identified requirements; (iii) to set a deadline for changes in the distribution of portfolios; and (iv) to set a deadline for changes in the composition of the organ concerned and presented to the Bank of Portugal to all relevant and necessary information for assessing the suitability and substitute members authorization; IX) provide that the authorization for the exercise of functions of the members of the management and supervisory bodies by the Bank of Portugal is a necessary condition for the start of the exercise of their functions; x) for the purposes of the preceding paragraph, provide that the definitive registration of designation of Member of the administrative or supervisory bodies with the commercial registry depends on the Bank of Portugal authorization for the exercise of functions; XI) establish that the authorization for the exercise of functions can be revoked at any time in the light of supervening circumstances, likely to determine the nonfulfillment of the requirements of the authorization;

PRESIDENCY of the COUNCIL of MINISTERS 11 xii) establish that the withdrawal of authorisation for the exercise of functions has the effect of immediate cessation of functions of the Member concerned, and that the Bank of Portugal must communicate the revocation to the person concerned and the institution of credit or finance company, which adopts appropriate measures to ensure that that cessation of functions occur immediately and the credit institution or financial society promoting the registration of termination by the commercial registry; XIII) provide that if the mandate of the Member of the Board of directors or Supervisory Board has already started, the refusal of the permit has the effect of its termination, the credit institution or financial society promoting the registration of termination of duties of the Member concerned with the commercial registry; XIV) demand that suitability assessment takes into account the way in which the person habitually manages the business, personal or professional, or carries on profession, especially in aspects revealing its ability to decide the form and carefully weighted, or its tendency to fulfil promptly its obligations or to have behaviors consistent with preserving market confidence taking into account all circumstances to assess the professional behavior for the functions concerned; XV) Impose certain conditions who consider themselves, depending on their severity, indicating lack of trustworthiness, including: a) evidence that the Member of the administrative or supervisory body not acted transparently or cooperative in its relations with any supervisory or regulatory authority, domestic or foreign;


PRESIDENCY of the COUNCIL of MINISTERS 12 b) refusal, revocation, cancellation or suspension of registration, license or permit, admission to the exercise of a commercial activity, business or profession, for a supervisor, professional or body with similar functions or the dismissal of a charge by public authority; c) the reasons for which a dismissal, termination of a link or the dismissal of a charge that assume special trust relationship; d) the prohibition on judicial authority, supervisory authority, professional or body with similar functions, act as administrator or Manager of a company or to perform functions; and) the inclusion of entries of default on credit responsibilities or in any other records of similar nature, on the part of the competent authority for the purpose; f) results, from a financial point of view or for business entities managed by the person concerned or that has been or is in possession of a qualifying holding, taking into account in particular any recovery procedures, insolvency or liquidation, and how it contributed to the situation that led to such processes; g) personal insolvency, regardless of their qualification; h) civil, administrative and criminal cases, as well as any other circumstances, the case may have a significant impact on the financial health of the person concerned;

PRESIDENCY of the COUNCIL of MINISTERS 13 i) insolvency, declared in Portugal or abroad, of the interested person or company for you dominated or has been administrator, Director or Manager, in law or in fact or member of the supervisory organ; j) the prosecution, the pronunciation or the conviction, in Portugal or abroad, for crimes against property, crimes of forgery and falsehood, offences against the achievement of Justice, crimes committed in the exercise of public functions, tax crimes, crimes specifically related to the exercise of financial and insurance companies and activities with the use of means of payment and crimes provided for in the commercial companies code; k) the prosecution or the conviction, in Portugal or abroad, for infractions to the rules governing the activity of credit institutions, finance companies and management companies, pension funds and the securities market standards and activity insurer or reinsurer, including insurance or reinsurance mediation; l) disciplinary rules violations, ethics or professional conduct, within the framework of regulated professional activities; m) Facts that have determined the dismissal order, or judicial confirmation of dismissal for cause, of members of the organs of administration and supervision of any commercial company; n) Facts practised in quality of administrator, Director or Manager of any commercial company that have determined the condemnation for damages caused to the company, the shareholders, the creditors or third parties;

PRESIDENCY of the COUNCIL of MINISTERS 14 xvi) Do depend on the exercise of the functions of the members of the management and supervisory bodies of the demonstration of skills and qualifications necessary for the performance of their duties, acquired through academic qualification or specialized training appropriate to the position to exercise and through professional experience with duration and levels of responsibility in line with the characteristics the complexity and size of the credit institution or finance company, as well as the risks associated with the activity for this developed; XVII) enable the Bank of Portugal make queries for the completion of the verification requirement of professional qualification with competent authority, in the exercise of its powers, can issue reasoned opinion on the matter; XVIII) Determine the situations likely to affect the independence of the members of the administrative or supervisory bodies, in particular: (a)) that the person concerned offices to exercise or have exercised on credit or finance company concerned or another credit institution or finance company; b) family relationships or similar, as well as professional relationships or economic nature that the person has with other members of the Supervisory Board of the credit institution or finance company, its parent company or its subsidiaries; c) family relationships or similar, as well as professional relationships or economic nature that the person concerned has with person holding qualifying holdings in the credit institution or finance company, its parent company or its subsidiaries;

PRESIDENCY of the COUNCIL of MINISTERS 15 b) Powers to the Bank of Portugal to determine the provisional suspension of the functions of any member of the administrative or supervisory bodies, if necessary to prevent a serious risk to the sound and prudent management of the credit institution or finance company or for the stability of the financial system; c) the situations in which ceases the preventive suspension of the Member of the Board of directors or supervisory bodies; d) measures that the Banco de Portugal may adopt in cases of lack of appropriateness of incidental members of the administrative or supervisory bodies and the respective adoption procedure; and) the obligation of credit institutions and financial societies identify the positions whose holders, not belonging to the management bodies or supervision, exercising functions that give them significant influence over the management of the respective institution; f) the extension of the system of fitness for Office-holders that do not belong to the management and supervisory bodies, carrying out functions that you confer significant influence over the management of the credit institution or financial society, notably responsible for the compliance function and risk management; g) The regulatory powers of the Bank of Portugal to qualify other functions performed by employees of the credit institution or finance company as essential or susceptible of giving significant influence over the management of the institution.



PRESIDENCY of the COUNCIL of MINISTERS 16 Article 3 meaning and extent of legislative authorization policy requirements applicable to employees compensation 1-when using the legislative authorisation conferred by subparagraph b) of paragraph 1 of article 1 may the Government establish rules on remuneration policies and practices in credit institutions and financial corporations as well as rules of composition and fixation of these salaries in particular its variable component set: a) the obligation of the credit institutions and financial corporations establish a remuneration policy, including discretionary pension benefits, current credit or finance company at the level of the group, its parent company and its subsidiaries, establishing that it should: (i)) Be appropriate to its size and internal organisation and the nature , the scope and complexity of their activities; II) Promote and be consistent with a sound and prudent risk management and does not encourage risk-taking beyond the level of risk tolerated by the credit institution or finance company; III) Be compatible with the business strategy of the credit institution or financial society, its objectives, values and long-term interests and include measures to avoid conflicts of interest; IV) provide for the independence of employees exercising functions of control and risk management in relation to the structure units that control, assigning them the adequate powers and remuneration dependent on the achievement of the objectives associated with the respective functions, but independent of the performance of the respective structural units;

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v) provide that the remuneration of employees with functions of risk management and control is enforced directly by the remunerations Committee or, failing that, by the Supervisory Board; vi) Distinguish clearly the criteria of fixed remuneration component based mainly on relevant professional experience and organizational responsibility of Developer's functions, and the criteria for the variable component of remuneration, based on sustainable performance and adapted to the risk of the credit institution or finance company, as well as in the fulfillment of the tasks of the employee in addition to the required; VII) Be approved and periodically reviewed by the competent organ, which is also responsible for monitoring their implementation; b) subjective scope of these remuneration policies, including: i) Members of the management and supervisory bodies; II) the direction of top; III) responsible for risk-taking iv) responsible for monitoring functions; and v) Employees whose total remuneration the place in the same step of the remuneration referred to in the previous article i) to (iii)), provided that the respective activities have a significant impact on the risk profile of the credit institution or finance company; c) the obligation of the Board to submit to the approval of the General Assembly the remuneration policy of the members of the management and supervisory bodies;

PRESIDENCY of the COUNCIL of MINISTERS 18 d) the obligatory implementation of the remuneration policy to be subject to a centralized internal analysis and independent, with a minimum annual periodicity, to be performed by the remuneration Committee, if any, for non-executive members of the Board of Directors, or by the members of the supervisory organ, having as purpose the verification of the compliance of the remuneration policies and procedures adopted by the competent corporate body; and) additional requirements to those referred to in (a)) that must obey the remuneration policy on credit institutions and financial corporations benefiting from exceptionally located State intervention, in particular: i) prohibition of assigning to the members of the Board of Directors any variable remuneration component, unless there are objective reasons which justify compelling; II) Impose the restructuring of remuneration so in keeping with a sound risk management and long-term growth of the credit institution or financial society, including the establishment of limits on the compensation of the members of the management bodies; III) limit the variable component of the remuneration of the employees of the credit institution or finance company to a percentage of the profits, where this is necessary to maintain a solid capital base and for the timely termination of the intervention is exceptionally located in the State; f) the prohibition of the credit institutions and financial corporations, by defining the variable remuneration component, set a total value of such a component likely to limit the ability of the credit institution or financial company to strengthen its capital base and that this total value takes into account all kinds of risks, current and future;

PRESIDENCY of the COUNCIL of MINISTERS 19 g) the definition of the rules apply where remuneration depends on the employee's performance, in particular: (i)) provide that the definition of the total value of the variable component of remuneration should take place through the combination of the appraisal of the performance of the employee, which should consider financial and non-financial criteria, and performance of your structure in the overall results of the credit institution or finance company; II) provide that the assessment should be carried out in a multi-annual framework, ensuring that the evaluation process is based on the long-term performance and that the payment of his compensation dependent components is distributed over a period that takes account of the underlying economic cycle of the credit institution or finance company and their business risks; III) establish performance measurement used to calculate the variable component of the remuneration adjustments should be considering the various types of risks, current and future, as well as the cost of capital and liquidity necessary for the credit or finance company. h) that at least half of the amount that is the variable remuneration component, whether that component is delayed or deferred, must not consist of a suitable balance between: (i)) in the case of credit institutions and financial companies issuers of shares or, as the form of the institution, equivalent instruments admitted to trading on a regulated market, shares or equivalent instruments issued by the same; in other cases, instruments indexed to actions or equivalent instruments not denominated in cash;

PRESIDENCY of the COUNCIL of MINISTERS 20 ii) When possible, other instruments on aceção articles 52 or 63 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 (Regulation No. 575/2013), or other instruments which can be fully converted into equity instruments main 1 level or whose value can be reduced to the extent that reflect adequately the quality of the lending credit institution or financial corporations and are appropriate for the purpose of the variable component of remuneration; I) the instruments should be subject to a retention policy by the credit institution or financial society, i.e. a period of unavailability and acoustically to match incentives with the long-term interests of the credit institution or financial corporations; j) Banco de Portugal may impose restrictions on types and characteristics of the instruments referred to in paragraph (h)); k) rules for fixing the variable component of the remuneration in accordance with the following principles: (i)) to defer a substantial variable component for a minimum of three to five years, and such a component and the duration of the period of deferment be fixed depending on the economic cycle, the nature of the activity of the credit institution or financial corporations, its risks and the developer's activity in question , and at least 40% of the variable component of the remuneration is delayed, being this high amount to at least 60% when the variable component of the remuneration is of particularly high value, and the right to the payment of the variable component of remuneration subject to deferral must be purchased on a pro rata basis over the period of deferment;

PRESIDENCY of the COUNCIL of MINISTERS 21 ii) Determine that such compensation, including deferred compensation, only that part is grandfathered or is paid if it is sustainable in the light of the financial situation of the credit institution or finance company and based in the light of the performance of same, structure unit concerned and the developer in question; l) Q ue, without prejudice to the civil and employment law applicable, the variable component of the remuneration should be amended pursuant to points (a) m) q) if the performance of the credit institution or financial society backward or is negative, taking into account both the current remuneration as the reductions in payment of sums whose entitlement to receipt has already formed. m) the requirement that the entire variable component of remuneration is subject to reduction mechanisms ("malus") and rollback ("clawback"), and the credit institution or finance company set specific criteria for its application, ensuring that they are, in particular, considered the situations in which the developer: a) Participated or was responsible for an act that resulted in significant losses to the credit institution or finance company; b) D left to fulfill criteria of appropriateness and suitability. n) payments related to the early termination of Developer's functions should reflect the performance verified along the same so as not to encourage inappropriate behaviors; the) the requirement that the remuneration to new employees compensation for termination of the previous functions, exercise should take into account the long-term interests of the credit institution or financial society, including the application of the rules regarding performance, PRESIDENCY of the COUNCIL of MINISTERS outages 22


by deduction by the credit institution or finance company, deferment and reversion; p) the prohibition of assignment of variable remuneration guaranteed, except when hiring new employees, just in the first year of activity and if there is a solid and strong capital base on credit or finance company; q) policy requirement relating to pension discretionary benefits consistent with the business strategy, objectives, values and long-term interests of the credit institution or finance company, and such benefits take the form of the instruments referred to in paragraph (h)) governing, inter alia, by the following: (i)) C aso termination of developer activity occurs before retirement discretionary pension benefits of holding are held by the credit institution or finance company for a period of five years, after which is grandfathered from the developer to the reception of the respective payment by credit or finance company. II) When the employee reaches the retirement, the discretionary benefits of holding and whose right to respective payment has already been purchased are retained by the credit institution or finance company for a period of five years, after which are delivered to the developer. r) banning the use by employees of any mechanism of risk coverage in order to mitigate the effects of alignment with the risk inherent in the methods of payment or through the payment of the variable component of remuneration through special purpose vehicles or other methods with equivalent effect;

PRESIDENCY of the COUNCIL of MINISTERS 23 s) the obligation for credit institutions and financial corporations establish appropriate ratios between the fixed and variable components of remuneration, in the following terms: i) the fixed component should represent a sufficiently high proportion of the total remuneration, in order to allow the implementation of a fully flexible policy on the variable component of the remuneration , including the possibility of non-payment; II) variable remuneration component may not exceed the value of the fixed component of the remuneration for each employee, and the credit institutions and financial corporations adopt a higher maximum level for the variable component of the total remuneration, provided that the variable component of remuneration not be exceeding twice the fixed component of the remuneration of each employee and that obey a approval procedure with the intervention of the general meeting of the institution. III) Admit that in the definition of the ratio between the fixed and variable components of total remuneration, the credit institutions and financial corporations can apply a discount rate, calculated in accordance with the guidelines defined by the European banking authority pursuant to the second subparagraph of point (iii)) (g)) of paragraph 1 of article 94 paragraph policy 2013/36/EU , to a maximum of one quarter of the variable component of the remuneration, provided that the same is paid in deferred instruments for a period of not less than five years; t) the powers of the Bank of Portugal to define, through regulation: i) The rules relating to remuneration policies and practices of institutions subject to its supervision;

PRESIDENCY of the COUNCIL of MINISTERS 24 ii) Duties of information to the Bank of Portugal concerning the remuneration policy;

u) the establishment and maintenance of a compensation Committee in the institutions whose size, internal organisation, nature, scope and complexity of activities justifies, as well as the respective rules of composition and functioning, determining that: (i)) to this Committee to formulate informed and independent judgements about policy and remuneration practices and about the incentives created for the purposes of risk management , capital and liquidity; II) That the Committee is responsible for the preparation of decisions relating to the remuneration, including decisions with implications in terms of risks and risk management of the credit institution or finance company concerned, which must be taken by the competent social organ; III) in the exercise of their activity, the Committee should note the long-term interests of the shareholders, investors and others interested in credit or finance company, as well as the public interest. Article 4 direction and extent of legislative authorization as infringement complaint mechanisms on the use of legislative authorization conferred by subparagraph (c)) of paragraph 1 of article 1 may the Government establish mechanisms that promote the reporting of infractions, in the following terms: a) Requiring institutions to implement specific, independent and autonomous means of reception, processing and archiving of the participations of serious irregularities related to its administration , PRESIDENCY of the COUNCIL of MINISTERS 25 accounting and internal oversight and serious infractions to clues duties provided for in the General system or regulation 575/2013, and that these means shall ensure the confidentiality of the shares received and the protection of personal information of the complainant and the suspect of the practice of the infraction;

b) Imposing certain people, by virtue of exercising functions in the credit institution or financial society, in particular in the areas of internal audit, risk management or monitoring compliance with legal and regulatory obligations (compliance) and you are aware of any serious irregularity related to the Administration, accounting and internal oversight organization, which is likely to put in a situation of financial imbalance , have a duty to participate in the supervisory organ; c) establish the requirement for analysis of received and preparation of a reasoned report, containing the measures adopted or the reasons for non-adoption, requiring that both documents are considered on paper or in another durable medium which enables reproduction in full and unchanged, for a period of five years; d) allow access to information and reports holdings by the Bank of Portugal, on the terms and conditions to be defined in the General Regime; and) prohibit participation performed can by itself, serve as a foundation to the establishment of any disciplinary procedure, civil or criminal in respect to the author of the contribution, except if they are deliberate and manifestly unfounded; f) provide that any person who has knowledge of serious evidence of infringements the duties laid down in the General system or regulation 575/2013, can make a contribution to the Bank of Portugal, being guaranteed the protection of the personal data of the complainant and the suspect of the practice of the infraction and the PRESIDENCY of the COUNCIL of MINISTERS 26 confidentiality as to the identity of the complainant at any time or until such time as this information is required for safeguarding the Defense of the rights covered by the complaint, within the scope of the investigation to which it gives rise or subsequent lawsuits;

g) Confer regulatory power to the Bank of Portugal to ensure the implementation of mechanisms of complaint. Article 5 direction and extent of legislative authorization as the cast of corrective measures in the use of the authorisation conferred by subparagraph (d)) of paragraph 1 of article 1, can the Government determine corrective measures to be applied by the Bank of Portugal the credit institutions and financial corporations that do not comply with the rules governing their activity, or for which the supervisor has information showing that don't fulfill within a year the following measures:) require that credit institutions or financial holding companies own funds exceed the requirements established under Title VII or the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; b) Restrict or limit the activities, operations or networks of branches of credit institutions and financial corporations, or request the disinvestment of the institution's activities which have excessive risks for its solidity; c) limit or prohibit the payment of interest or dividends by a credit institution or finance company to shareholders or holders of additional own funds instruments 1 level if the ban does not constitute an event of default;

PRESIDENCY Of The COUNCIL Of MINISTERS 27


d) Impose additional reporting requirements or more often, in particular on capital and liquidity position; and Impose specific requirements of liquidity); f) Require additional disclosures; g) Imposing a specific requirement of own funds in excess of the legally established minimum level of credit institutions and financial corporations in the following situations: (i)) that do not comply with the requirements laid down pursuant to article 393.º of Regulation (EC) no 575/2013, articles 74 and 108 of the Directive n° 2013/36/EU and the General Regime; II) whose risks are not covered by the capital requirements which may be laid down in the General system or regulation 575/2013; III) Whose application of other measures appears not enough by itself to improve satisfactorily, in appropriate time limit, the rules, strategies, processes and mechanisms applied by credit institutions; IV) Whose analysis and assessment referred to in paragraph 4 of article 98 and paragraph 4 of article 101 paragraph policy 2013/36/EU can prove that the failure to comply with the requirements for the application of the methods referred to in those provisions is likely to lead to inadequate capital requirements; v) for which it is probable that the risks are underestimated despite the fulfilment of the requirements laid down by the general scheme and by Regulation No. 575/2013; vi) That communicate to the Bank of Portugal, in accordance with paragraph 5 of article 377.º PRESIDENCY of the COUNCIL of MINISTERS of 28 regulation 575/2013, that the results of the stress tests referred to in that article significantly exceed their capital requirements for the trading book of correlation.

Article 6 direction and extent of legislative authorization regarding the obligation to register and transfer operations communications on the use of the authorisation conferred by article) of paragraph 1 of article 1, the Government can impose the obligation of credit institutions and financial corporations, on the basis of their consolidated financial situation, registering the operations corresponding to payment services provided by all entities included in the scope of prudential supervision that have as an individual beneficiary or collective based in any offshore jurisdiction and report them to the Bank of Portugal or any other entities authorised to provide payment services in the national territory. Article 7 direction and extent of legislative authorization regarding the obligation of creating a database of accounts on the use of the authorisation conferred by subparagraph (f)) of paragraph 1 of article 1, can the Government impose the creation of a depository accounts, payments, loans and financial instruments, domiciled in the national territory in credit institutions , financial companies or payment institutions, organized and managed by the Bank of Portugal, determining that: a) the information contained in the database of bills include: PRESIDENCY of the COUNCIL of 29 MINISTERS i) account Id and the end entity where it is domiciled; II) identification of the respective holders and persons authorised to move them, including or other representatives; III) date of opening and closing of the account; b) the requirement for credit institutions, financial companies and payment institutions authorized to open accounts, of any kind is, proceeding with the submission to the Bank of Portugal of the information referred to in the preceding paragraph, with the periodicity defined in regulations of the Bank of Portugal; c) communication of information contained in the database of accounts to any judicial authority in criminal proceedings, as well as the Attorney General of the Republic, or who carries out the respective powers by delegation, and to the financial intelligence unit, within the framework of the tasks entrusted to them by the law No. 25/2008 of 5 June as amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, 6 February; d) the database of information relating to the identification of the accounts of credit institutions, financial companies or payment institutions in which the accounts are domiciled may also be transmitted, preferably by via Electronics: i) the Tax and Customs Authority within the framework of the respective assignments relating to the recovery of debts and even in situations where the same determine in legal terms, the derogation of banking secrecy; II) to the Office of financial management of Social Security, I.P., within their respective responsibilities relating to debt collection and provision of socio-economic support;

PRESIDENCY of the COUNCIL of MINISTERS 30 iii) to implementation under legally provided for, as well as judicial officials when exercising functions equivalent to those in Executive proceedings for payment of a certain amount.

and constant information) data base can be used by the Bank of Portugal, within the limits of its competence; f) responsibility for the information contained in the base's bank accounts of credit institutions, financial companies or payment institutions that report and that them exclusively correct it or change it, on its own initiative or at the request of its customers, always occurring errors or omissions; g) the Bank of Portugal to access information contained in the tax identification database, managed by the Tax and Customs Authority, for verification of the accuracy of the name and tax identification number of the holders and persons authorised to move bills transmitted by credit institutions, financial companies or payment institutions in accordance with the protocol concluded between the Bank of Portugal and the Tax and Customs Authority; h) Powers to the Bank of Portugal to regulate aspects necessary for the execution of the base of accounts, in particular as regards access to information and centralized reporting of credit institutions, financial companies or payment institutions. Article 8 direction and extent of legislative authorization regarding the sanctions regime that regulates the violation of the provisions of law No. 25/2008, June 1-5 in the use of the authorisation conferred by paragraph 2 of article 1, can the Government, establish the expansion criteria for graduation from the sanction as follows: PRESIDENCY of the COUNCIL of MINISTERS 31 a) Determine that the measure of fines and penalties is done in function of specific unlawful fact, the fault of the agent and of the demands of prevention, taking into account the individual or collective nature of the agent;

(b)) provide that in determining the unlawfulness of the fact, the agent's fault and prevention requirements, answer, the duration of the infringement, the degree of participation of the accused in the Commission of the infringement, the existence of a benefit, or intention to obtain, for themselves or others, the existence of damage caused to third for the infraction and its importance when it is determinable , the potential systemic consequences of the infraction, the occasional or repeated infringement, the intensity of the intent or the negligence, if the above consist of a default, the time elapsed since the date on which the Act should have been practiced at the level of responsibility of the individual, its functions and its sphere of action in collective person concerned and to the special duty of the individual not to commit the infringement; (c)) provide that in determining the sanction if they still have in mind the economic situation of the accused, their previous conduct, the existence of acts of concealment intended to impede the discovery of infringement, the existence of the agent acts intended to, at its option, repair the damage or remedy the hazards caused by infringement and the level of cooperation of the accused with the competent administrative authority; d) establish that the fine must exceed the economic benefit obtained by the defendant or person who was its purpose benefit, to the extent that that is determinable. 2-when using the legislative authorisation conferred by paragraph 2 of article 1, the Government is authorized to establish the contraordenações provided for in article 53 of law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, PRESIDENCY of the COUNCIL of MINISTERS 32


by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, of 6 February, are punishable as follows: (a)) when the offense is committed within the framework of the activity of a credit institution or investment firm: i) from € 50 000 to € 5 000 000 If the agent is a collective person; II) With fine of € 5 000 000 25 500 €, if the agent is a natural person; (b)) When the offense is committed within the framework of the activity of another financial entity: i) With fine of € 25 000 to 2 500 000 euro, if the agent is a collective person; II) With fine of € 12 500 1 250 000 €, if the agent is a natural person; c) When the offense is committed within the framework of the activity of a non-financial entity, with the exception of those for solicitors and barristers: i) With fine of € 5 000 to 500 000 euro, if the agent is a collective person; II) With fine of € 2 500 to 250 000 €, if the agent is a natural person; d) Determine that whenever the amount corresponding to twice the resulting economic benefit of the infringements referred to in article 53 of law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013 , February 6, is determinable and above the upper limit of fines applicable, this limit is increased to that amount; and) to determine that in the specific case of collective persons which are credit institutions or investment firms, the maximum levels of fines referred to in point (i)) (a)) and (b)) of article 54 of law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/June 24, 2011 , and by decree-laws Nos. 242/2012, 7 November, and PRESIDENCY of the COUNCIL of MINISTERS 33 18/2013, of 6 February, are high up to the amount corresponding to 10% of the total annual net turnover of the financial year prior to the date of judgment, where that amount is determinable and exceeding those limits; f) determined that for the purposes of the ceilings of the fines provided for in the preceding paragraph: i) the annual net turnover of the previous financial year must include the gross income consists of interest and similar income, the income from shares and other variable-yield instruments or fixed and commissions received in accordance with article 316 of Regulation (EU) no 575/2013; II) For collective persons which are subject to an accounting framework different from what is laid down in article 316 of the regulation, the calculation of the net annual turnover is based on the data that best reflect the provisions of that article; III) where the financial entity is a subsidiary, the gross income is the result of consolidated account of the parent company in the preceding financial year; g) determines that, when collective people are concerned which are financial entities and the maximum levels of fines provided for in article 54 of law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, November 7 , and 18/2013, of 6 February, are, at the same time, susceptible of worsening under subparagraphs (a) (d)) and e), shall prevail as the higher ceiling; h) clarifying that the accessory penalty of publication refers to the final decision or the PRESIDENCY of the COUNCIL of MINISTERS final 34; I) provide that the publication of the final decision final or is performed, in full or extract, at the expense of the infringer, on a national, regional or local newspaper, as, in this case appears more appropriate. 3-The use of the legislative authorisation conferred by paragraph 2 of article 1, can the Government determine, as regards disclosure of the decision, the following: a) in the case of offences committed within the framework of the activity of a credit institution or investment firm, the judgment, within judicial review, is published on the Internet site of the competent administrative authority in full or extract containing at least the identity of the individual or collective and information about the type and nature of the infraction, even if it was required to its judicial review, and, in this case, the express mention of this fact made; (b)) the Court decision to confirm, alter or revoke the judgment of the competent administrative authority or the District Court must be disclosed in accordance with the preceding paragraph; c) disclosure takes place under anonymity: i) the sanction to be imposed on a natural person and, as a result of a prior assessment, demonstrate that the publication of personal data would be disproportionate in view of the gravity of the infraction; II) the publication could undermine the stability of financial markets or compromise an ongoing criminal investigation; III) publication can, as much as it is possible to determine, cause disproportionate damage to the institutions or persons concerned; d) Case where the circumstances justifying the anonymity can cease PRESIDENCY of the COUNCIL of MINISTERS 35 within a reasonable time, the publication of the identity of the individual or collective condemned may be delayed during this period;

and) The information disclosed will remain available on the website of the competent administrative authority for five years, counted from the time when the judgment becomes final or final, and cannot be indexed the Internet search engines; f) Determine that the competent administrative authority to communicate to the European banking authority sanctions the credit institution or investment firm for the practice of the contraordenações provided for in law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012 , 7 November, and 18/2013, of 6 February, as well as the situation and the result of the decisions that the resources apply; Article 9 direction and extent of legislative authorization regarding the sanctions regime applicable to violations of the provisions of the General Regime for credit institutions and financial corporations 1-The use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 could the Government define as a crime, punishable by the penalty provided for the crime of qualified disobedience: a) disobeying legitimate orders or warrants of Bank of Portugal , from within the scope of its functions and the creation of obstacles to its implementation, the Bank of Portugal or official has warned that making provision;

PRESIDENCY of the COUNCIL of MINISTERS 36 b) non-compliance with the duty to fulfill, not hinder or defraud the implementation of additional sanctions or measures applied in the process of being made.



2-in the use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government, still, determines that the general scheme is applicable also to facts committed in foreign territory for which they are responsible individuals who, in the case of credit institutions and financial corporations with headquarters in Portugal and which operate through branches or providing services If you are in any of the situations referred to in paragraph 1 of article 203(9) of the general scheme, or hold shares. 3-The use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 could the Government provide explicitly that is punishable as the author of the contraordenações provided for in General everyone who, by action or omission, contributing causally to your verification. 4-The use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government predict that without prejudice to the individual responsibility of individuals representing another circumstance of the cool type of breach require certain personal elements and these only occur in person, in entity equivalent or one of the officers involved. 5-The use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 could the Government provide explicitly that people regarded as entities and collective are responsible also for the contraordenações committed by holders of its PRESIDENCY of the COUNCIL of MINISTERS 37 positions of administration, management, direction or leadership, in the performance of their duties, as well as by the contraordenações committed by representatives , representatives or employees of the collective entity in acts performed in the name and on behalf of this.


6-The use of the authorisation conferred by paragraph 4 of article 1 may the Government introduced amendments to the criteria of attribution of responsibility of individuals, predicting that the responsibility of holders of positions of management or direction of the collective people and similar entities can be especially toned down when, cumulatively, are not directly responsible for or area where it was found the practice of infringement and their liability merges only on the fact that knowing or should know the practice of infringement, they have not adopted the appropriate measures to immediately halt. 7-The use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine that in case of negligence only the maximum fine provided for the infraction is reduced to half. 8-in the use of the authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government establish the expansion criteria for graduation from the sanction in the general scheme in the following terms: a) introducing new criteria for determining the unlawfulness of the fact, the agent's fault and prevention requirements, in particular, the degree of participation of the accused in the Commission of the infraction the intensity of the intent or the negligence, the existence of benefit, or intend to get it for you or for another person, the existence of damage caused to third for the infraction and its importance when it is determinable, the duration of the infringement and, in the case of omission of Act because, the elapsed time from the moment that the PRESIDENCY of the COUNCIL of MINISTERS Act 38 should have been practiced; b) Introducing specific criteria in determining the unlawfulness of the fact, the agent's fault and prevention requirements for natural persons, the level of responsibilities, the scope of the functions and sphere of action on collective person concerned;

c) taking into account, for the purposes of determining the applicable sanction, the existence of acts of concealment intended to impede the discovery of the infraction, the agent acts intended to, at its option, repair the damage or remedy the hazards caused by infringement and the level of cooperation of the accused. 9-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine that whenever a person should respond simultaneously as a crime and the above title for the practice of the same facts, the processing of contraordenações to be the Bank of Portugal and the respective decision fit always to this authority and that whenever a person should respond only by way of crime , even if the facts are also punishable under the above title, the judge can apply the criminal penalties referred to above in question. 10-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 could the Government provide that, in cases where there has been concealment of the facts that are the subject of the above process, the limitation period shall run only from the knowledge, on the part of the Bank of Portugal, of the facts. 11-in the use of the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 could the Government provide explicitly that the limitation period of the sanctions applied if account from the day you become final or made absolute decision which determined its application and determines that, without prejudice to other causes of suspension or interruption of the limitation period prescribing the procedure for the PRESIDENCY of the COUNCIL of MINISTERS made 39 suspended from the notification of the order carrying out preliminary examination of the appeal of the decision to apply sanctions to the notification of the final decision of the appeal such suspension may not exceed 30 months if the offense is punishable with a fine up to € 1,500,000.00, treating collective people , or with fines up to € 500,000.00, in the case of natural persons, or 5 years if the offense is punishable by a fine exceeding those amounts, being elevated to such periods double if there has been recourse to the Constitutional Court. 12-when using the legislative authorisation conferred by paragraph 4 of article 1 could the Government provide explicitly that the specific legislation referred to in paragraph (m)) of article 210.º of the general scheme includes the European Union legislation and that the violation of the rule on granting credit that alludes to in point t) of article 211 of the General Regime with respect to paragraph 1 of article 118-. 13-when using the legislative authorisation conferred by paragraph 4 of article 1 can the Government criminalize the following conduct as particularly serious contraordenações: a) the omission of communication due to the Banco de Portugal of any supervening facts to the authorization for the exercise of functions that could affect the requirements of good repute, professional qualification, independence or availability of the authorized person, as well as the omission of measures imposed by the Bank of Portugal on this matter; b) the omission of communications due to the competent authorities in respect of the acquisition, disposal and holding of qualifying holdings determined in articles of the General arrangements implementing articles 22, 25 and 26 of Directive No. 2013/36/EU; c) the acquisition of qualifying holding despite the opposition of the competent authority, in violation of article of the general scheme to transpose paragraph 1 of article 22 of Directive No. 2013/36/EU; d) the omission of the information and communications due to competent authorities PRESIDENCY of the COUNCIL of MINISTERS in accordance with article 40 of the General Regime, referring to articles 99 and 101, paragraph 1 of Article 394, paragraphs 1 and 2 of article 415 and paragraph 1 of article 430.º of Regulation (EC) no 575/2013, within the time limits set out, as well as the provision of incomplete or inaccurate; and observance of ratios) adequacy of own funds referred to in article 92 of the Regulation (EC) no 575/2013; f) failure to comply with the conservation plan of own funds provided for in articles of the general arrangement implementing article 142 No. 2013 policy/36/EU or measures imposed by the Bank of Portugal pursuant to same; g) non-compliance with the national measures adopted pursuant to article 458.º of Regulation (EC) no 575/2013; h) omitting the implementation of systems of Government, in violation of article of the General arrangements transposing Article 74 paragraph policy 2013/36/EU; I) non-compliance with the duty to have repeated liquid assets adequate, in violation of article of the General Regime which refer to article 412.º of Regulation (EC) no 575/2013; j) failure to comply with the limits to large exposures, in violation of article of the General Regime which refer to Article 395.º of Regulation (EC) no 575/2013; k) exposure to the credit risk of a securitisation position, with failure to observe the conditions laid down in article violation of general rules which refer to article under regulation 575/2013; l) the omission of information disclosure or the disclosure of information is incomplete or inaccurate, in breach of articles under the general scheme referring to paragraphs 1 to 3 of article 431.º or of paragraph 1 of article 451.º of Regulation (EC) no 575/2013;

PRESIDENCY of the COUNCIL of MINISTERS 41 m) payment to holders of instruments included in the own funds of the credit institution or finance company, whenever such payments are banned, in violation of article of the General rules transposing the directive Article 141 No. 2013/36/EU and that refer to articles 28, 51 or 63 of regulation 575/2013;

n) the permission of one or more people that settlements are not done article the General arrangements transposing Article 91 paragraph policy 2013/36/EU to become or continue to be members of the administrative or supervisory body; the) the omission of credit or finance company to promote the registration of termination of duties of the Member of the administrative or supervisory body with the commercial registry, when there is a refusal or withdrawal of authorisation for the performance of duties by the Bank of Portugal. 14-Is the Government allowed to establish that the particularly serious contraordenações provided for in the general scheme are punishable as follows: (a)) when the infringement is committed by a natural person, raise the ceiling of the fine applicable for € 5 000 000; (b)) When the infraction is practiced by collective person are applied to define the limits of the fine the following rules: i) raise the ceiling of the fine abstractly applicable to 10% of the amount corresponding to the total annual net turnover of the last financial year preceding the date of the judgment, including the gross income consists of interest and similar income income from shares and other variable-yield securities or fixed and commissions received in pursuance of article 316 of the Regulation n° 575/2013, where that amount is determinable and PRESIDENCY of the COUNCIL of MINISTERS 42 than that limit; II) in the case of collective persons subject to an accounting framework different from that laid down in article 316 of regulation 575/2013, the calculation of the net annual turnover, established in the preceding paragraph, is based on data that better reflect the provisions of that article;


(iii)) if the collective person is a subsidiary gross income is gross income resulting from the consolidated accounts of the parent company in the last financial year preceding the judgment. 15-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government extend the catalogue of penalties to include the loss of economic benefit out of the infringement, as well as of objects owned by the agent in connection with the practice of the infraction, and clarify that the sanction of inhibition of social positions and administration functions , direction, management or leadership and the sanction of suspension of the exercise of voting rights allocated to holders of shares applies to any entities subject to the supervision of the Bank of Portugal. 16-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine the subjection of the above processes initiated by the Bank of Portugal the secret of Justice, until it is given administrative decision, establishing, in particular, that the defendant can, as soon as it is notified to the exercise of the right of Defense , watch the procedural acts taking place and concerning him and refer the case back and obtain copies, extracts and extracts of any parts of them, and determine the applicability to the above process, mutatis mutandis, of the exceptions provided for in the code of criminal procedure to the security grading of Justice. 17-use of legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the PRESIDENCY of the COUNCIL of MINISTERS 43 Government determines that, when necessary for investigation or to the statement of the case, the Bank of Portugal may carry out searches to any local and seizure of any documents and equipment, as well as determine the freezing of any values regardless of the place or institution in which they are, and should the values be deposited in seized checking account at the Bank of Portugal, ensuring payment of the fine and costs in to be sentenced the defendant.

18-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may provide that the Government searches and seizures of premises are subject to court order, which, in the case of search in Office of lawyer in Audit Office or doctor's Office, this is enacted and performed, under penalty of nullity, by the examining magistrate in terms of specific legislation and that, except for the situations provided for in article 126 of the general scheme, the searches and seizures conducted to entities not subject to the supervision of the Bank of Portugal are subject to authorization by the competent judicial authority, that where, in the course of a search, whether seized equipment or media that are likely to contain information that does not comply with only the customers , operations or information of accounting and prudential nature of the institution, the same shall be submitted to the competent judicial authority that authorizes or orders by order a search of the relevant elements in a computer system, performing a copy or printing these data, in autonomous support, which is next to the process. 19-in the use of the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government establish the duty of any persons and entities to provide the Bank of Portugal all explanations and information, as well as to deliver all the PRESIDENCY of the COUNCIL of MINISTERS 44 documents, regardless of the nature of its support, objects and elements, in so far as the same are necessary for the instruction of the processes within its competence.

20-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government establish the obligation of, in the course of inspections the entities subject to the supervision of the Bank of Portugal, the same giving you unrestricted access to your systems and files, including data processing, where information is stored on customers or operations, accounting information Prudential, or other relevant information in the context of the powers of the Bank of Portugal, as well as to allow them to be drawn copies and transfers that information. 21-using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine the possibility of the Bank of Portugal to establish, when this is necessary to the effective instruction of the above process, or to protect the financial system or the interests of depositors, investors and other creditors, precautionary measures, in particular: a) to impose conditions on the exercise of the activity by the defendant , namely the special duties of compliance information or certain technical regulations, or the requirement of prior authorization request to the Bank of Portugal to practice certain acts; b) the preventive suspension of the exercise of a particular activity, occupation or position by the defendant; c) the preventive closure, in whole or in part, of establishment where PRESIDENCY of the COUNCIL of MINISTERS carries out 45 illegal activity. 22-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine that the regime of precautionary measures must comply with the principles of necessity, appropriateness and proportionality, being preceded by a hearing of the accused, except if this endangers the purpose or effectiveness of the measure.

23-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine that the regime of precautionary measures providing for: the immediate enforceability and termination) only with the Court ruling that definitely the revoke, with the beginning of the fulfillment of accessory sanction effect equivalent to the precautionary measure enacted or with its express repeal by the Banco de Portugal; b) mandating discount in accessory sanction of the duration of preventive suspension, if it is determined the preventive suspension of the exercise of the activity, occupation or position by the defendant and this will be condemned, in the same process, in accessory sanction consisting of the inhibition of the exercise of the same activities, functions or positions; c) of recorribilidade application for injunctive relief, having the immediate rise in separate resource and merely devolutive effect. 24-in the use of the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government to review the system of communications and notifications to perform in the framework of contraordenações processes, establishing that: a) communications are made by registered letter, fax, email or any other means of telecommunication; b) communications, in accordance with the general scheme of the illicit mere ordering PRESIDENCY of the COUNCIL of MINISTERS 46 social, contained in Decree-Law No. 433/82 of 27 October, amended by decree-laws Nos. 356/89 of 17 October, 244/95 of 14 September, and 323/2001, of 17 December, and by law No. 109/2001 , 24 December and other cases expressly provided for, you have to take the form of notification, are made by registered letter with warning of reception addressed to the notifying or, when available, to the respective proponent, or personally, if necessary through the police;

c) notification of the procedural act which formally allocate to defendant engaging in a above, as well as of the decision apply fine, penalty or accessory any injunctive relief, is addressed to the defendant and, when there, to the respective proponent; d) in the case of notification of the procedural act formally allocate to defendant engaging in a above, decision apply fine, penalty or accessory any precautionary measure, in case the defendant is not found, the notification is made by notice published in the newspapers of the location of its registered office, permanent establishment or last known residence in the country or in case there be no newspaper or the defendant not be thirsty, permanent establishment or residence in the country, one of the national newspapers; e) whenever the defendant refusing to receive the notification agent certifies that refusal, for the act as a notification. 25-use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government establish the applicability of a financial penalty up to 10 UC to witnesses and experts who do not attend on the day, time and place appointed for the stage of the process, nor justify the absence on the day or within five working days of 47 COUNCIL PRESIDENCY following , or, having appeared, refuse to give evidence or unjustifiably to exercise the respective function.




26-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine that the record is archived as soon as has been collected sufficient evidence of the infraction has not, of the agent to have practiced any title or be legally inadmissible the procedure and if it has not been possible to obtain sufficient evidence above verification or who were its agents and determine also, the process can only be reopened if new evidence arise that invalidate the pleas in law in the decision of archiving, and that the decision is communicated to the archiving agent when is post-notification procedural part that will formally be charged an above or, if earlier, when the same has already had some intervention in the process. 27-the use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government limit to three the number of witnesses that the defendant can indicate for each infraction, and the twelve in total, given that one should discriminate against those who just have to testify about their economic situation and their conduct before and after the facts , which may not exceed the number of two. 28-the use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine the limits on the number of witnesses that the defendant can indicate may be exceeded, the application that has been found to be duly substantiated, provided that this appears essential to the discovery of truth, PRESIDENCY of the COUNCIL of MINISTERS in particular 48 per process to be of exceptionally located complexity. 29-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government establish the Bank of Portugal must inform the defendant or his advocate, where there is, the additional steps proves that, on its own initiative, take place after the presentation of the defense, giving deadline for wanting, to comment on those representations.

30-use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government make it clear that the decision to apply fine contains, in addition to the already provided in the general scheme, an indication of the evidence which established the decision and a statement of the legal provisions and penalties applicable and that the notification of the decision also contains a warning that the fine and When applicable, the costs must be paid within 10 working days after the decision becomes final or is made absolute, under penalty to be enforced collection and an indication of the terms on which a conviction can be challenged in court and become feasible. 31-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government determines that the Board of Directors of the Bank of Portugal may suspend, in whole or in part, the execution of the penalty, always conclude that are still performed in an appropriate manner and enough prevention purposes, without prejudice to the suspension of sanctions be conditional on the fulfilment of certain obligations such as deemed necessary for the regularization of illegal situations, the repair of damages or the prevention of hazards and that suspension timing elapses without the defendant have practiced any illicit criminal or mere social ordering for whose processing is the PRESIDENCY of the COUNCIL of MINISTERS of Portugal Bank 49, and without that you violated the obligations have been imposed If you consider the penalty which had been suspended, and, conversely, to his execution, when he reveals that the purposes that were at the bottom of the suspension were not able to, through it, be reached.



32-the use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government to simplify the calculation of costs under the above processes, establishing that, being several defendants, the costs are shared by all in equal parts, only being due the value relating to defendants who are convicted and that the charges are intended to cover the costs incurred in the process in particular with notifications and communications, recording media, and copies or extracts of the process, and its reimbursement calculated at the rate of half of 1 UC in the first 100 sheets or fraction of the processed and a tenth of UC for each subsequent set of 25 sheets or fraction of processed. 33-in the use of the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government reframe the legal provisions regarding the accelerated process, determining that:) the sanction applicable is a reprimand or a fine whose concrete measure does not exceed five times the minimum limit laid down for the infraction or, going on various infractions, a single fine does not exceed twenty times the highest threshold of contraordenações in contest and in any case, the adoption of a certain and particular behavior, as well as the application of the accessory sanction PRESIDENCY of the COUNCIL of MINISTERS 50 of publication of the decision; b) decision contains the identification of the accused, the summary description of the facts complained of, the legal provisions violated and penalties applicable and ends with the warning or indication or accessory specifically applied sanction or, where applicable, the given behavior and the deadline for their adoption and an indication of elements that contributed to the determination of the sanction; c) the accused has a period of 10 working days to refer to the Bank of Portugal, where the penalty imposed be a reprimand, written declaration of acceptance and, in the case of the penalty be a fine, written declaration of acceptance or proof of payment of the same; d) rulings given in accelerated process are indisputable; and) in the process accelerated, not the payment of costs. 34-the use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 could the Government change the legal provisions of the General Regime for the disclosure of the decision, stating that: the decision for disclosure) extract must include, at least, the identity of the individual or collective and information about the type and nature of the infringement even that has been contested in court, and, in this case, the express mention of this fact made; (b)) the Court decision to confirm, alter or revoke the condemnatory decision from the Bank of Portugal or of the District Court must be disclosed in accordance with the preceding paragraph; c) disclosure takes place under anonymity: i) the sanction to be imposed on a natural person and, following an PRESIDENCY of the COUNCIL compulsory prior 51 is shown that the publication of personal data is disproportionate in view of the gravity of the infraction; II) the disclosure endangers the stability of financial markets or compromise an ongoing criminal investigation; III) disclosure could, as much as it is possible to determine, cause disproportionate damage in view of the gravity of the infraction to credit institutions or finance company or natural person concerned. d) Case where the circumstances justifying the anonymity may cease within a reasonable time, the publication of the identity of the individual or collective condemned may be delayed during this period; and) The information disclosed will remain available on the website of the Bank of Portugal for five years, counted from the time when the judgment becomes final or final, and may not be indexed on search engines on the Internet; f) Banco de Portugal inform the European banking authority sanctions applied by the practice of contraordenações pursuant to articles of general arrangements implementing articles 65 to 67 of Directive No. 2013/36/EU and the situation and the result of the decisions that apply resources. 35-the use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 may the Government establish explicitly that, in the event of an appeal, and there are several defendants, the deadline for the Bank of Portugal refer the case back to the Prosecutor's Office is counted as the deadline for appeals to finish in last place. 36-the use of legislative authorization conferred by subparagraph (g)) of paragraph 1 of article 1 may provide that the Government challenge feature of judgments given by the Bank of Portugal only has suspensive effect if the applicant provide warranty, within 20 days, amounting to half the fine imposed, unless they demonstrate, in the same period, other than the PRESIDENCY of the COUNCIL of MINISTERS may provide 52 , in whole or in part, for lack of means. 37-when using the legislative authorisation conferred by subparagraph (g)) of paragraph 1 of article 1 can the Government determine that, in the event of an appeal, if there is any trial, hearing the Court decides based on evidence held in the audience, as well as on evidence produced in the administrative phase of the above process and provide explicitly that it does not apply to above processes initiated and decided in accordance with the general principle of the prohibition of reformatio in pejus. Article 10 Duration this legislative authorization lasts for 180 days.

Seen and approved by the Council of Ministers of 28 April 2014, Prime Minister


The Minister of the Presidency and Parliamentary Affairs PRESIDENCY of the COUNCIL of MINISTERS Draft 53 of Decree-Law following the financial crisis of the last few years, several initiatives have been implemented at the international level to strengthen the financial system that culminated with the publication, by the Basel Committee on banking supervision, a set of measures to the densification of the prudential regulatory framework applicable to credit institutions known as Basel III regulatory framework. The package of measures is vast, importing refer, for its relevance, the introduction of new requirements in the field of determination of own funds, with a view to improving its quality and quantity, the introduction of a supplementary measure not based on risk to assess the risk of leverage in the banking system, the requirement of maintaining adequate levels of liquidity in a perspective of short and medium-long term through the introduction of two measures of liquidity risk assessment and the introduction of a set of instruments with the purpose of imposing additional capital reserves to credit institutions. In the context of those international initiatives, developed with special focus in the context of the G20, it is important to mention, at European Union level, the high-level group on financial supervision, which invited the European Union to develop a more harmonised set of financial regulatory measures. In this context, the European Council stressed the need to establish a single set of European rules applicable to all credit institutions and investment firms.



PRESIDENCY of the COUNCIL of MINISTERS Directive No. 54 2013/36/EU of the European Parliament and of the Council of 26 June 2013 (policy no. 2013/36/EU), and the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 (Commission Regulation (EU) no 575/2013) constitute the legal framework governing access to the activity of credit institutions and the supervisory framework and the prudential rules applicable credit institutions and investment firms. The policy no. 2013/36/EU and the Regulation (EU) no 575/2013 implement in the EU the framework of Basel III, replacing the No. 2006/48/EC of the European Parliament and of the Council of 14 June 2006, relating to the activity of credit institutions and to the exercise thereof (policy no. 2006/48/EC) and the Directive No. 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions, which had already been placed, in recent years, a number of amendments. Thus, the directive no. 2013/36/EU contains provisions relating to access to the activity of credit institutions, including, in particular, rules concerning the exercise of freedom of establishment and freedom to provide services, to corporate governance requirements, including the remuneration of employees, the Supervisory Board, the powers of the competent authorities, to the sanctions regime and the establishment of capital reserves. Commission Regulation (EU) no 575/2013, in turn, contains the prudential requirements applicable to credit institutions and investment firms, including the new rules on the establishment of the equity and the calculation of the respective requirements, liquidity and leverage, including the transitional arrangements agreed internationally for the progressive convergence to the new requirements set out in the regulatory framework of Basel III.

PRESIDENCY of the COUNCIL of MINISTERS 55 With this decree-law the transposition into domestic law of Directive No. 2013/36/EU in the national legal system, introducing the changes necessary for the implementation of the standards laid down in the same. In order to prevent and correct the morass and, thereby, facilitate access and understanding by citizens of the rules applicable to the activity of credit institutions and investment firms, have opted to make the transposition of standards for the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 , of 31 December (General Regime). The publication of Directive No. 2013/36/EU and Commission Regulation (EU) no 575/2013, together with the creation of the Single supervisory Mechanism, through which the European Central Bank will assume effective supervisory functions regarding national credit institutions, also put the need to adjust the scope of the types of entities covered by the concept of ' credit institution '. While not introducing any changes in the definition of ' credit institution ', which is set out in Commission Regulation (EU) no 575/2013 in the same terms in which policy was no 2006/48/EC, the need to ensure a more harmonised application at European level of this definition and the new prudential regulation justified that introduce such an adjustment. Indeed, to date, Member States have adopted different interpretations of the concept of ' credit institution ', being able to distinguish between those who opted for a broader interpretation to include this concept a broad set of entities empowered to raise funds from the public-whether through deposits, either through the issuance of bonds or other similar instruments – , and those Member States that restricted the concept of ' credit institution ' only to entities authorized to receive deposits from the public.

PRESIDENCY of the COUNCIL of MINISTERS shall be 56, therefore, the reduction of the list of entities considered as «credit institution» by, on the one hand, the extinction of current types of credit institutions that do not currently have practical by economic agents and host, on the other hand, the qualification of most other financial companies. Financial companies are subject, therefore, to all the prudential rules applicable to the credit institution arising from Directive No. 2013/36/EU and Commission Regulation (EU) no 575/2013, getting in addition subject to the standards that are set by the Bank of Portugal. Thus, this amendment allows a reduction for those entities context costs created by European regulation, making them more competitive in the domestic market. In the field of corporate governance, and in particular for the Office of management and supervisory functions, comes the policy no. 2013/36/EU establish a set of requirements as to the adequacy of office-holders with these functions, in terms of suitability, qualification, professional experience, independence and availability, to complement by guidelines of the European banking authority, seeking to contribute to the sound and prudent management of the institutions , forcing the strengthening and adaptation of the rules contained in the general scheme. Clarified that the responsibility for the choice of suitable persons for the performance of such functions is always in the first line, credit institutions. The Bank of Portugal judgment of prognosis subordinate to a preventive function, to promote assessment of suitability of the members of the management and supervisory bodies shall consider all the relevant facts about how the person usually manages its business and exercise their profession, having clarified that the analysis focuses on professional wants personal business in line with the guidelines of the European banking authority. Moreover, this judgment not be limited to, inter alia, take account of PRESIDENCY of the COUNCIL of MINISTERS to condemn situations 57 in judicial proceedings or otherwise, and may encompass any pending cases.



The policy no. 2013/36/EU determines also the obligation to establish and maintain remuneration policies and practices in line with effective management of the risks thereof, applicable to employees whose professional activities have a significant impact on the risk profile of the institutions. In general terms are retained in the policy no. 2013/36/EU the provisions of Directive 2006/48/EC and which were transposed through Decree-Law No. 104/2007, of 3 April, being incorporated into the General Scheme at this stage in the context of the objective of legislative dispersion correction referred previously. However, with the purpose of strengthening the promotion of sound risk management and does not encourage risk-taking in inappropriate levels by those employees, the policy no. 2013/36/EU introduces new rules concerning the structure and composition of remunerations, in particular their variable component, which are now housed in the national legal system. It should be noted that the directive no. 2013/36/EU gives the European banking authority competent to draw up technical standards for regulation specifying some of the aspects covered by the diplomas that change, these standards which will be required after the adoption by the European Commission, directly applicable in the Portuguese legal system.

PRESIDENCY Of The COUNCIL Of MINISTERS 58


It is, also, the introduction in the general scheme of a cast of violations and applicable sanctions, criteria for determining the extent of the fine and rules concerning disclosure of decisions, following the policy forecast no 2013/36/EU a common minimum framework in this field with a view to ensuring compliance with the obligations arising from that policy and Regulation (EU) no 575/2013. In the area of sanctions, also introduced amendments to law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, of 6 February, establishing preventive and repressive measures to combat laundering of illicit provenance advantages and the financing of terrorism , which transposes to the internal legal order the directive no. 2005/60/EC of the European Parliament and of the Council of 26 October 2005, and the directive no. 2006/70/EC of 1 August 2006, concerning the prevention of the use of the financial system and the activities and professions specially designated for the purpose of money laundering and terrorist financing. Looking to make the sanctions regime as provided for in General more appropriate and efficient Regime, are still the same changes with the aim of contributing to the streamlining of the above process and concurrent robustecimento the power of intervention of the Bank of Portugal, without however prejudicing the rights and guarantees of the accused's defence. It was considered to be the appropriate time to conduct a more thorough overhaul of the sanctions regime, especially by its importance, the creation of a new cause of suspension of prescription, the prediction of a system of secret justice, the introduction of more stringent limits as to the testimonial proof production, expanding the applicability of accelerated process and use judicial phase, the evidence produced during the administrative phase.

PRESIDENCY of the COUNCIL of MINISTERS 59 In transposition of Directive No. 2013/36/EU, also reinforces the catalog of corrective measures that the Banco de Portugal may impose in the event of non-compliance with rules governing the activity of the institutions, what motivates also changes the General arrangements in this regard. Finally, with the present law, the General Scheme introduced the possibility of the Bank of Portugal to provide that credit institutions and certain investment firms hold additional capital reserves, putting from way at the disposal of the supervisory authority a new cast of instruments aimed at the mitigation of risks of systemic assumed by sector, predominantly in this way contributing to the stability of the financial system. Were heard the National Council of financial supervisors, the Bank of Portugal, the Comissão do Mercado de Valores Mobiliários, the Instituto de Seguros de Portugal, the Portuguese Association of banks, the Associação Portuguesa de Seguradores, the Portuguese Association of investment funds, pension funds and Assets, the ASFAC-Association of Specialized Credit Institutions, the ALF-Portuguese Association of Leasing, Factoring and Renting , the Portuguese Institute of Corporate Governance, the National Commission for Data Protection and the European Central Bank. So: the use of legislative authorization granted by law No. [reg. 36/2014 PL], and pursuant to points (a)) and b) of paragraph 1 of article 198 of the Constitution, the Government decrees the following: article 1 1 Object-this Decree-Law: PRESIDENCY of the COUNCIL of MINISTERS 60 a) Implements in the internal legal order in paragraph 5 of article 412.º, paragraph 3 of the article 413.º paragraph 1 of article 458.º and paragraph 3 of article 493.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Commission Regulation (EU) No 648/2012, of the European Parliament and of the Council July 4, 2012; b) Transposes to the internal legal order the policy no. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, relating to the activity of credit institutions and on the prudential supervision of credit institutions and investment firms amending Directive No. 2002/87/EC of the European Parliament and of the Council of 16 December 2002 , and repealing the directives Nos. 2006/48/EC and 2006/49/EC of the European Parliament and of the Council of 14 June 2006; c) changes the sanctions regime laid down in the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, and introduces several improvements in the same cross diploma; 2-In implementation of the provisions of the preceding paragraph, this decree-law shall change: the General Regime) of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December; b) of the securities code, approved by Decree-Law No. 486/99, of 13 November; c) Of Law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. PRESIDENCY of the COUNCIL of MINISTERS 242 61/2012, 7 November, and 18/2013, 6 February; d) Of Law No. 28/2009, of 19 June; e) of Decree-Law No. 260/94, of 22 October; f) of Decree-Law No. 72/95, of 15 April, as amended by decree-laws Nos. 285/2001, of 3 November, and 186/2002, of August 21; g) of Decree-Law No. 171/95, of 19 July, amended by Decree-Law No. 186/2002, of August 21; h) of Decree-Law No. 211/98, of July 16, as amended by decree-laws Nos. 19/2001 of 30 January, and 309-A/2007, of 7 September; I) of Decree-Law No. 357-B/2007, of October 31, as amended by Decree-Law No. 52/2010 of 26 June; j) of Decree-Law No. 357-C/2007, of October 31, as amended by decree-laws Nos. 52/2010, from June 26, 18/6 of February 2012, and 2014, 40/18 March; k) the Legal Regime of Payment services and Electronic currency, approved by Decree-Law No. 317/2009, of 30 October, amended by Decree-Law No 242/2012, 7 November; l) the Legal Regime of central counterparties, approved by Decree-Law No. 40/2014, of 18 March. Article 2 Obligations of disclosure by country 1-credit institutions and investment firms to disclose, on an annual basis, on a consolidated basis and for each fiscal year, the following information disaggregated by country, whether European Union Member State or third country, in which he has an establishment: PRESIDENCY of the COUNCIL of MINISTERS the 62) Title , nature of activities and geographic location; b) turnover; c) number of employees full-time equivalent basis; d) profit or loss before tax; and Taxes paid on profits); f) public subsidies received. 2-the information referred to in the preceding paragraph shall be subject to audit and publication in annual financial statements or, as the case may be, to the consolidated financial statements of the credit institution or investment firm. Article 3 amendment to the general scheme of the credit societies and financial institutions articles 1, 3, 6, 8, 9, 13-A, 14, 14-A, 16 to 18, 20 to 23, 30 to 33, 36, 37, 39 to 40-, 42, 43, 48, 49, 52, 53, 56-the 58, 60, 61, 66, 67, 69 to 72, 78 to 82, 93 , 93-103, 103, 116, 116-C, 116, 117, 118 G-A, 120 to 124, 130 to 132-A, 132-134 to 137 C, 137-137-D, 145-B, F-145, 145-H, 145-I, 152, 153, 155, 167, 184.º, 188, 189-, 196.º, 199.º-A, 199.º-C 199.º-and 199.º-I, 199.º-L, 201 to 206 208 to 213, 215, the 220, 222.º the 224, 227.º-the 228 and 230 of the general scheme of credit institutions and financial corporations (General Regime), approved by Decree-Law No. 298/92 of 31 December, shall be replaced by the following: ' article 1 Object 1-this Decree-Law regulates: PRESIDENCY of the COUNCIL of MINISTERS the 63) access to the activity and respective exercise on the part of credit institutions and financial societies;

b) the supervision of credit institutions and financial societies, their powers and instruments. 2-[Repealed]. Article 3 types of credit institutions Are credit institutions:) [...]; b) […]; c) […]; d) […]; e) [Repealed]; f) [Repealed]; g) [Repealed]; h) [Repealed]; I) [Repealed]; j) [Repealed]; k) […]; l) […]. Article 6 of the COUNCIL of MINISTERS PRESIDENCY 64


Types of financial corporations 1-Are financial corporations: the) investment firms referred to in article 4; b) financial institutions referred to in points ii and iv) of subparagraph (a)) s) Article 2A, which include: i) financial corporations of credit; II) mortgage credit institutions; III) investment firms; IV) leasing companies; v) corporations engaged in factoring; vi) mutual guarantee societies; VII) Fund managers of investment funds; VIII) regional development corporation; IX) currency exchange agencies; x) asset management companies of securitisation funds; XI) financial corporations of microcredit; c) [Repealed]; d) [Repealed]; e) [Repealed]; f) [Repealed]; g) [Repealed]; h) [Repealed];

PRESIDENCY Of The COUNCIL Of MINISTERS 65 i) [Repealed]; j) [Repealed];

l) other companies, corresponding to the definition of financial society, are qualified as such by the law. 2 - […]. 3 - […]. 4 - […]. Article 8 [...] 1-[...]. 2 - […]. 3 - […]: a) […]; b) […]; (c)) the European Investment Bank and other international agencies that Portugal's public part and whose legal regime providing for the possibility of receiving the public in national territory, repayable funds; d) […]. 4 - […].

PRESIDENCY of the COUNCIL of MINISTERS 66 article 9 [...] 1-For the purposes of this general scheme, are not considered to be repayable funds received from public funds obtained through bond issue on the terms and limits of the commercial companies code or applicable law, or the funds obtained through the issuance of commercial paper, in accordance with and within the limits of applicable law. 2 - […]. Article 13-the [...] 1-for the purposes of the calculation of a qualifying holding, in addition to attaching to shares of which the participant has ownership or usufruct, voting rights: a) [...]; b) […]; c) […]; d) […]; e) […]; f) […]; g) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 67 h) [...]; i) […]. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. Article 14 [...] 1-[...]:) [...]; b) […]; c) […]; d) […]; e) […]; f) […]; g) […]; h) […]; i) […]; j) Have management and supervisory organs members whose suitability, qualifications, independence and availability, whether individually, in terms of the overall PRESIDENCY of the COUNCIL of MINISTERS 68 guarantees sound and prudent management of the credit institution.

2-the conditions laid down in points (a) to (f)) (a) (i)) of the preceding paragraph must be completed fully and proportionate to the risks inherent in the business model and the nature, level and complexity of the activities of each credit institution and should be taken into account the technical criteria set out in articles 115-to-F, 115-115 and 115-115 K-v. 3-[previous No. 2]. Article 14-Layoffs-1 the Banco de Portugal may exempt a credit institution with headquarters in Portugal which are permanently affiliated to a central body which supervises them and which also has its headquarters in Portugal, in whole or in part, the requirements and obligations listed in the following paragraph if there is legislation in relation to these institutions and to that central body , provides for the following: a) [...]; b) […]; c) […]. 2-can be object of exemption referred to in the previous paragraph: a) the requirements set out in paragraph 2 of article 15, point (b)) of paragraph 1 of article 17 and article 115-J;

PRESIDENCY Of The COUNCIL Of MINISTERS 69 b) [Repealed]; c) [Repealed].

3-exemption shall not preclude the application of the obligations referred to in the preceding paragraph to the central body and depends on the subjection of the Assembly consisting of this and affiliated institutions to such requirements and obligations on a consolidated basis. 4-In case of exemption, chapters I and II of title III, chapter II-C of title VII, paragraphs 9 and 10 of article 116-K and the title VII to apply to the set consisting of the central body and affiliated institutions. Article 16 [...] 1-the Constitution of credit institutions depends on the authorization grant case-by-case basis by the Bank of Portugal. 2-[Repealed]. 3-the authorisation granted and the elements relating to obtaining authorisation are communicated to the European banking authority. 4-[Repealed]. 5-[Repealed]. 6-[Repealed]. Article 17 [...] 1-[...]: PRESIDENCY of the COUNCIL of MINISTERS to 70) Characterization of the type of credit institutions to set up and design of articles of Association;

b) programme of activities, with an indication of the type of operations to be carried out, geographical deployment, organizational structure and human, technical resources and materials used, as well as provisional accounts for each of the first three years of activity; c) […]; d) based on the appropriateness of the Exposure structure shareholder to the stability of the credit institution; e) […]. f) […]; g) identification of the members of the management and supervisory bodies with justification of the tenderers ' suitability to guarantee sound and prudent management of the credit institution. 2 - […]. 3-the devices, processes, procedures, mechanisms, policies and practices referred to in the preceding paragraph must be complete and in proportion to the risks inherent in the business model and the nature, level and complexity of the activities of each credit institution and should be taken into account the technical criteria set out in articles 115-to-F, 115-115 and 115-115 K-v. 4-should still be submitted the following information regarding the founding shareholders which are collective people holding qualifying holdings in the credit institution the form: PRESIDENCY of the COUNCIL of MINISTERS the 71) [...]; b) […]; c) […]; d) […]. 5 - […]. 6 - […]. Article 18 [...] 1-[...]. 2 - […]. 3-the provisions of paragraph 1 shall also apply when the credit institution as is a subsidiary of an insurance undertaking or investment firm authorised in foreign country, that is a subsidiary of the parent undertaking of company under these conditions or is dominated by the same individuals or collective dominate an insurance undertaking or investment firm authorised in foreign country. Article 20 [...] 1-[...]:) [...]; b) […]; c) the credit institution as not respecting the General requirements for authorisation provided for in article 14;

PRESIDENCY Of The COUNCIL Of MINISTERS 72 d) [...]; e) […];

adequate supervision of f) credit institution the form be poisoned by a close relationship between the institution and other persons; g) proper supervision of the credit institution to be poisoned, or seriously impaired either by legal or regulatory provisions of a third country which is subject to any of the people with whom the credit institution has a close relationship or by difficulties inherent in the implementation of such provisions; h) members of the administrative or supervisory bodies that do not comply with the requirements of good repute, professional qualifications, availability or independence in accordance with articles 30 to 33 2-[...]. 3-The economic requirements of the market cannot constitute reason for refusal of permission. Article 21 [...] 1-the authorization shall expire if the credit institution does not start its activity within 12 months. 2 - […]. 3 - […]. Article 22 of the COUNCIL of MINISTERS PRESIDENCY 73 [...] 1-[...]:) [...]; b) […]; c) […]; (d)), for more than six months, the credit institution ceasing activity or reduce to insignificant level; e) if serious irregularities in the Administration, accounting or internal auditing organization of the credit institution; f) If the credit institution is unable to honour its commitments, in particular on the safety of the funds which they have been entrusted; g) If a credit institution fails to comply with the obligations arising out of their participation in the deposit guarantee fund, in the Resolution Fund or investor-compensation scheme; h) If a credit institution violating the laws and regulations governing their activity or not observing the regulations of the Bank of Portugal, by jeopardizing the interests of depositors and other creditors or the normal functioning of the money market, foreign exchange or financial; I) If a credit institution expressly renounces the authorization, except in the case of voluntary dissolution in accordance with the provisions of article 35; j) If the members of the administrative or supervisory bodies don't work, in a perspective of the organ as a whole, guarantees of a PRESIDENCY of the COUNCIL of MINISTERS 74 sound and prudent management of the credit institution;


k) If a credit institution violates, so serious or repeated, the legal provisions or regulations aimed at preventing money laundering and the financing of terrorism; l) If a credit institution fails to comply with the prudential requirements relating to capital requirements, the rules on large exposures or liquidity rules; m) If the credit institution to commit one of the offences referred to in article 211 2-withdrawal of authorisation based on the grounds referred to in point (j)) of the preceding paragraph is based on verification that the members of the administrative or supervisory bodies as a result of non-compliance with the measures laid down in article 32, left whole guarantee sound and prudent management of the credit institution. 3-the revocation of the authorisation granted to a credit institution which has branches in other Member States of the European Union is preceded by consultation of the supervisory authorities of those Member States may, however, in cases of extreme urgency, replace the query for simple information, accompanied by justification using this simplified procedure. 4-the revocation of authorisation implies dissolution and liquidation of the credit institution, unless, in the case indicated in points (a) to (d)) and i) of paragraph 1, the Bank of Portugal the spare.

PRESIDENCY of the COUNCIL of MINISTERS 75 article 23 [...] 1-[...]. 2-the revocation decision must be justified, notified to the credit institution and communicated to the European banking authority and supervisory authorities of the Member States of the European Union where the credit institution has branches or service. 3-the Bank of Portugal gives the revocation decision convenient advertising and takes the necessary measures for the immediate closure of all establishments of the credit institution, which remains until the beginning of functions of the liquidators. 4 - […]. Article 30 General provisions 1-the adequacy, for the exercise of their functions, the members of management and supervisory bodies of credit institutions shall be subject to the exercise of evaluation capacity and in the course of his mandate. 2-the fitness of the members of the management and supervisory bodies is the ability to ensure, at all times, guarantee sound and prudent management of credit institutions, with a view, in particular, to safeguard the financial system and the interests of their respective customers, depositors, investors and other creditors. 3-for the purposes of the preceding paragraph, the members of the management and supervisory bodies must fulfil the requirements of good repute, professional qualification, independence and availability referred to in articles 76 PRESIDENCY of the COUNCIL of MINISTERS.



4-in the case of collegiate organs, the individual assessment of each Member must be accompanied by a collective appreciation of the organ, in order to verify that the organ itself, considering its composition, brings together professional qualification and availability sufficient to comply with the respective legal and statutory functions in all the relevant areas of expertise. 5-the evaluation of the members of the management and supervisory bodies obeys the principle of proportionality, taking into account, among other factors, the nature, the size and complexity of the activity of the credit institution and the requirements and responsibilities associated with specific roles to play. 6-internal policy of selection and evaluation of the members of the management and supervisory bodies should promote the diversity of skills and competences necessary for the exercise of the function, setting goals for the representation of men and women and devising a policy to increase the number of people under-represented gender in order to achieve these goals. 7-Portugal Bank collects and analyzes information on diversity practices and communicates it to the European banking authority. 8-the Bank of Portugal regulates the arrangements laid down in this chapter.

PRESIDENCY of the COUNCIL of MINISTERS article 31 77 [...] 1-the members of the management and supervisory bodies must demonstrate that they possess the skills and qualifications necessary for the performance of their duties, acquired through academic qualification or specialized training appropriate to the position to exercise and through professional experience with duration and levels of responsibility that are in line with the characteristics the complexity and size of the credit institution, as well as the risks associated with the activity for this developed. 2-training and prior experience must possess sufficient relevance to allow holders of those offices to understand the functioning and activity of the credit institution, assess the risks to which it is exposed and analyze critically the decisions taken. 3-the Bank of Portugal may make inquiries concerning the verification of the completion of the professional qualification requirement with the competent authority, which, in the exercise of its powers, is in a position to issue a reasoned opinion on the matter. 4-the members of the Supervisory Board and the members of the administrative organ that does not exercise executive functions must have the skills and qualifications that will enable them to make a critical assessment of the decisions taken by the Board of Directors and oversee this function effectively.

PRESIDENCY of the COUNCIL of MINISTERS 78 5-management and supervisory organs shall have, in terms of collective knowledge, skills and experience.

Article 32 inappropriateness prevailing 1-credit institutions shall notify the Bank of Portugal, as soon as they are aware, any fact incidental to the authorization for the exercise of functions that could affect the requirements of good repute, professional qualification, independence or availability of authorized person, in the same terms in which these should have been or would be reported for the purposes of presentation of the application for authorization for the exercise of functions , by reference to the provisions of articles 30 to 31-2.-the following shall be considered as superseded both the events subsequent to the granting of authorisation, as the previous facts that only knowledge after this. 3-the duty set out in paragraph 1 shall be deemed to be met if the communication is made by the very people who respect facts. 4-If, for any reason are no longer filled the requirements of good repute, professional qualification, independence or availability of a given member or as a whole, the Board of directors or supervisory board, the Bank of Portugal may adopt one or more of the following measures: a) set a deadline for the adoption of appropriate measures for the fulfilment of the requirement at fault; b) Suspend the authorization for the exercise of member functions in the PRESIDENCY of the COUNCIL of MINISTERS because 79, for the period of time required for curing the lack of identified requirements;

c) set a deadline for changes in the distribution of portfolios; d) set a deadline for changes in the composition of the organ concerned and presented to the Bank of Portugal to all relevant and necessary information for assessing the suitability and authorisation of substitute members. 5-the Bank of Portugal shall communicate the measures referred to in the preceding paragraph the persons concerned and to the credit institution, which shall take the necessary measures for its implementation. 6-adoption of measures on the part of the person concerned or of the credit institution within the time allowed may determine the revocation of the authorization for the exercise of functions of the Member concerned. 7-the adoption of the measure referred to in subparagraph (d)) of article 4 and the occurrence of the condition provided for in paragraph 1 shall determine the corresponding endorsement to the registration of termination of duties of the Member concerned. 8-Having been determined the suspension of authorisation pursuant to paragraph 1 (b)) of paragraph 4, the same just ceases its effects after decision of the Bank of Portugal. 9-the provisions of this article shall apply, mutatis mutandis, the managers of branches and representative offices provided for in article 45 of COUNCIL of MINISTERS PRESIDENCY 80




Article 33 [...] 1-the Bank of Portugal can oppose to the members of the administrative or supervisory bodies of credit institutions exercising supervisory board functions in other entities understand the accumulation is susceptible to prejudice the exercise of the functions that the person already has, in particular, there are serious risks of conflicts of interest or of this result lack of availability for Office in accordance with the regulation by the Bank of Portugal. 2-in its assessment, the Bank of Portugal must meet the specific circumstances of the case, the special requirements of the Office and to the nature, scale and complexity of the activity of the credit institution. 3-Notwithstanding the provisions of paragraph 1, it is forbidden to members of the management and supervisory bodies of significant credit institutions according to their size, internal organisation, nature, scope and complexity of its activities, accumulate more than an executive position with two non-executive directors, four non-executive positions. 4-for the purposes of the preceding paragraph, it is considered a single post office executive or non-Executive in the administrative or supervisory bodies of credit institutions or other entities that are included in the same consolidated supervision perimeter or in which the credit institution holds a qualifying holding.

PRESIDENCY of the COUNCIL of MINISTERS 81 5-the provisions of paragraph 3 shall not apply to the members of the management and supervisory bodies of credit institutions which benefit from the intervention is exceptionally located in the State and have been designated by the latter. 6-Are excluded from the limit laid down in paragraph 3 the positions performed on entities that have by main object the exercise of non-commercial activities, except where, by their nature and complexity, or the size of the respective entity, if show that there are serious risks of conflict of interest or lack of availability to the position in the credit institution. 7-the Bank of Portugal may authorise the members of the management and supervisory bodies covered by paragraph 3 to build up a non-executive position. 8-the Bank of Portugal shall inform the European banking authority authorisations granted in accordance with the preceding paragraph. 9-credit institutions shall have rules about prevention, communication and curing of situations of conflicts of interest, in accordance with the regulation by the Bank of Portugal, which should constitute an integral part of the internal politics of assessment referred to in paragraph 2 of article 30-a. 10-in the case of functions to perform in an entity subject to the supervision of the Banco de Portugal , the power of opposition carries out within the framework of the request for authorisation of a member for the exercise of power. 11-for the purposes of the preceding paragraph in other cases, credit institutions shall communicate to the Bank of Portugal claim of at least 30 days after the date set for the beginning of new functions, it being understood that, in the absence of a decision within the COUNCIL of MINISTERS PRESIDENCY 82 of that period, the Bank of Portugal does not preclude the accumulation.

Article 36 [...] 1-[...]:) [...]; b) […]; c) […]; d) identification of the managers of the branch. 2 - […]. 3-the opening of new establishments in the Member State in which the credit institution has a branch just lacks the communication of the new address, in accordance with article 40 article 37 [...] 1-[...]. 2-shall also be communicated the amount and the composition of own funds and the solvency ratio of the credit institution, as well as a detailed description of the deposit-guarantee scheme of which the institution is involved and to ensure the protection of the depositors of the branch. 3 - […].

PRESIDENCY of the COUNCIL of MINISTERS Article 83 39 [...] In compliance with the provisions in the preceding articles, the branch can perform operations in the host country listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, the institution is authorized to effect in Portugal and which are mentioned in the programme of activities referred to in point (b)) of paragraph 1 of article 36 article 40 [...] 1-In case of modification of some of the elements referred to in (b)) d) of paragraph 1 of article 36 or deposit guarantee system referred to in paragraph 2 of article 37, the credit institution shall communicate it in writing at least one month in advance, the Bank of Portugal and the supervisory authority of the country where it has established a branch. 2 - […]. Article 40-the [...] 1-[...]:) [...];

PRESIDENCY of the COUNCIL of MINISTERS 84 b) important Penalties and extraordinary measures taken by the Bank of Portugal, including the imposition of additional capital requirements, in accordance with article 116-C, and limits the use of the advanced measurement approach for calculation of capital requirements, under paragraph 2 of article 312 of Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013; c) the results of the risk assessments of the credit institution; d) joint decisions which have been taken under specific prudential requirements; and) any decisions taken in the exercise of supervisory powers under article 116-C, paragraph (a)) of paragraph 1 of article 116-D and article 116-M; f) Possible imposition of specific requirements of liquidity. 2 - […]. 3 - […]. 4-where the 135.3-B does not apply, the Bank of Portugal, in its capacity as authority responsible for supervision of a credit institution with significant branches in other Member States, shall establish and chair a College of supervisors to facilitate the cooperation under paragraphs 1 to 3 and article 122a , being applicable, mutatis mutandis, the provisions of the PRESIDENCY of the COUNCIL of MINISTERS 85 paragraphs 4, 6 and 7 of article 135-B.



5-the Bank of Portugal consulted the competent authorities of the host Member States about the operational measures necessary for the implementation of immediate liquidity recovery plans taken by the credit institution, if relevant to the risks of liquidity in the currency of the host Member State. Article 42 [...] 1-[...]. 2-the Bank of Portugal can refuse the claim founded reason, particularly for the administrative structures or the financial situation of the credit institution being inadequate to the project, or there are obstacles that prevent or hinder the control and inspection of the branch of the Bank of Portugal. 3 - […]. 4 - […]. 5 - […]. 6-In case of modification of some of the elements referred to in paragraph 1 (b)) d) of paragraph 1 of article 36, the credit institution shall communicate it in writing at least one month in advance, the Bank of Portugal.

PRESIDENCY of the COUNCIL of MINISTERS 86 article 43 freedom to provide services in the European Union 1-A credit institution with headquarters in Portugal that you want to start in another European Union Member State provision of services listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, which is authorized to effect in Portugal and that are not provided through permanent establishment that has the country of residence of the recipient of the supply must notify the Bank of Portugal, specifying the activities which it intends to carry out in that State. 2 - […]. 3 - […]. Article 48 [...] The provisions of this section shall apply to the establishment in Portugal to branches of credit institutions authorised in other Member States of the European Union or in States belonging to the European economic area and subject to the supervision of the respective authorities. Article 49 [...] 1-[...].

PRESIDENCY Of The COUNCIL Of MINISTERS-87 2 [...]. 3-the opening of new establishments in Portugal by a credit institution which has branch in Portugal just lacks the communication of the new address, in accordance with article 51 article 52 [...] Observed to be the previous articles, the branch can perform in Portugal the operations listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 28 June 2013, which the credit institution is authorised to perform in their country of origin and that included in the programme of activities referred to in point (a)) of paragraph 1 of article 49 article 53 [...] 1-When it is found that a branch does not meet, or that there is a significant risk of not fulfilling the provisions that apply, including the national law on the supervision of liquidity, the implementation of monetary policy or the duty to provide information on operations carried out in Portuguese territory, the Bank of Portugal orders him to put an end to the irregularity or take measures to prevent the risk of non-compliance. 2 - […]. 3-If the supervisory authority of the Member State of origin do not take the action requested, or they are inadequate and the branch persists in violating the rules, the Bank of Portugal may: a) After inform the supervisory authority of the State of the PRESIDENCY of the COUNCIL of MINISTERS 88


origin, make arrangements to understand convenient to prevent or suppress new irregularities, namely preventing the branch start new operations in Portugal;

b) refer the matter to the European banking authority and request their assistance in accordance with article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the Council of 24 November 2010. 4-Are communicated to the European Commission and the European banking authority, the number and type of cases in which measures have been taken in accordance with subparagraph (a)) of the preceding paragraph. 5-In case of emergency, the Banco de Portugal may, before initiating the procedure provided for in the preceding paragraphs, take all the necessary precautionary measures to prevent financial instability that is susceptible to present a serious threat to the collective interests of depositors, investors and others to whom the branch service, including the suspension of payments giving knowledge of such measures as soon as possible, the supervisory authorities of the Member States of the European Union, the European Commission and the European banking authority. 6 - […]. 7 - […]. 8-The protective measures adopted pursuant to paragraph 5 cease in cases where the country of origin take reorganisation measures or when the Bank of Portugal is satisfied that such measures are no longer applicable. Article 56-the PRESIDENCY of the COUNCIL of MINISTERS 89 [...] 1-[...]. 2 - […]: a) […]; b) the likely impact of a suspension or termination of the operations of the credit institution on systemic liquidity and payment systems, clearing and settlement in Portugal; and (c)) [...]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9-the preceding paragraphs shall also apply, mutatis mutandis, to requests presented to the Bank of Portugal by the competent authorities of a host Member State for the qualification of a branch of a credit institution subject to supervision of the Bank of Portugal as significant. 10-if the Bank of Portugal to understand that the operational measures relating to the implementation of the recovery plans of liquidity of the credit institution are not suitable, you can refer the matter to the European banking authority and request their assistance in accordance with article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the COUNCIL of MINISTERS PRESIDENCY Council 90 November 24, 2010.

Article 57 [...] 1-the establishment in Portugal to branches of credit institutions not included in article 48 shall be subject to the provisions of this section, in paragraph 3 of article 17, articles 19, 21 and 22, paragraphs 2 and 3 of article 49 and in articles 54 and 55 2-authorisation and operating conditions applicable to branches of third-country nationals established in Portugal cannot result in a treatment more favourable than that benefit from the branches of European Union Member States. Article 58 [...] 1-the establishment of the branch depends on the authorization of the Bank of Portugal. 2-the application for authorisation is accompanied by the particulars referred to in paragraph 1 of article 49 and, yet, with the following: a) [...]; b) […]; c) […]; d) […]; e) […].

PRESIDENCY Of The COUNCIL Of MINISTERS 91 3-[...]. 4 - […].

Article 60 freedom to provide services in Portugal of credit institutions authorised in another Member State of the European Union to provide in their home country the services listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, can provide these services in Portuguese territory, even without establishment in Portugal. Article 61 [...] 1-is condition of the beginning of the provision of services in Portugal that the credit institution notifies the competent authority of the Member State of origin. 2 - […]. 3 - […]. Article 66 [...] The registration of a credit institution with headquarters in Portugal covers the following elements: a) business name and, where applicable, mark or trade name; b) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 92 c) [...]; d) […]; e) […]; f) […]; g) […]; h) identification of the members of the administrative and supervisory bodies and of the general meeting of the credit institution; I) delegations of the powers of management, including the members of the administrative, the attribution of portfolios or executive functions; j) […]; k) the exercise of the provision of services under article 43; l) Place and date of creation of subsidiaries, branches, agencies and representative offices; m) identification of managers of branches and representative offices established abroad; n) […]; o) […]. Article 67 [...] The register of authorised credit institutions in foreign country and which have branches or representation office in Portugal covers the following elements: PRESIDENCY of the COUNCIL of MINISTERS 93 a) business name and, where applicable, mark or trade name; b) […]; c) […]; d) […]; e) […]; f) […]; g) […]; h) […]. Article 69 [...] 1-the register of members of the management and supervisory bodies must be requested after the respective authorisation by the Bank of Portugal, on request of the credit institution, which must indicate the date of the respective duty and that, in cases of prior authorisation in accordance with the procedure laid down in paragraph 3 of article 30-B, shall be accompanied by a copy of the minutes of the decision stating the name of the persons concerned. 2-[Repealed]. 3-[Repealed]. 4 - […]. 5-[Repealed]. 6-[Repealed]. 7-[Repealed].

PRESIDENCY Of The COUNCIL Of MINISTERS-94 8 [...]. 9-[Repealed].

Article 70 [...]-1 [Repealed]. 2-[Repealed]. 3-[Repealed]. 4-If the Bank of Portugal, on the basis of the facts disclosed by the credit institution, in the circumstances provided for in article 32 or any other that are aware, decide to take any of the measures provided for in that article, they shall be entered in the register through: the registration of Endorsement) temporary suspension of the exercise of the functions of a member of the Board of directors or supervision for a period to last the suspension; b) lift the suspension after endorsement adoption of measures determined in accordance with article 32; c) cancellation of the registration, following the withdrawal of authorisation for the exercise of functions of the Member concerned or when it is replaced, depending on the fact that from occurring in the first place. 5-[Repealed].

PRESIDENCY Of The COUNCIL Of MINISTERS-95 6 [Repealed]. 7-[Repealed].

Article 71 [...] 1-[...]. 2-are not subject to the initial registration period for credit institutions, enabling for the establishment in Portugal to entities with headquarters abroad, as well as any other without effectuation of which is not permitted the exercise of the activity. 3 - […]. 4 - […]. 5 - […]. Article 72 [...] […]: a) […]; b) […]; c) […]; d) […]; and check) when any of the conditions is met for the necessary authorization for the establishment of the PRESIDENCY of the COUNCIL of MINISTERS or the institution 96 exercise of the activity.

Article 78 [...] 1-members of the administrative or supervisory bodies of credit institutions, their employees, representatives, Commissioners and others who provide services to them on a permanent or occasional basis may not disclose or use information about facts or elements relating to the life of the institution or to the relations with their customers whose knowledge it takes to writing them in the performance of their duties or the provision of its services. 2 - […]. 3 - […]. Article 79 [...] 1-[...]. 2 - […]: a) […]; b) […]; c) deposit guarantee fund, the investors compensation scheme and Resolution Fund, within their respective competence;

PRESIDENCY Of The COUNCIL Of MINISTERS 97 d) [...]; e) […]; f) […]. 3-[Repealed]. Article 80 duty of secrecy of the Banco de Portugal 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5-Is also subject to the duty of secret communication to other entities by the Banco de Portugal of centralized data, in accordance with the respective legislation. Article 81 [...] 1-[...]:) [...]; b) […]; c) […]; d) […]; e) […]; f) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 98


g) […]; h) bodies responsible for maintaining the stability of the financial system on macro-prudential perspective; I) bodies responsible for restructuring intended to preserve the stability of the financial system; j) institutional protection systems referred to in paragraph 7 of article 113 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, and the authorities responsible for their supervision; k) enforcers, for monitoring and for financing measures to recapitalisation and resolution; l) clearing houses or any other similar body recognised by national law to ensure compensation or settlement services contracts in one of the respective national markets. 2-the Bank of Portugal may also exchange information with the following entities where such information is relevant to the exercise of the respective assignments: a) [...]; (b)) the European systemic risk Board, pursuant to Commission Regulation (EU) no 1092/2010 of the European Parliament and of the Council of 24 November 2010; (c)) the European Securities and markets authority, in accordance with the relevant European directives and Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 of PRESIDENCY of the COUNCIL of MINISTERS 99 November 2010; (d)) the European insurance and occupational pensions supervisors, established by Regulation (EU) no 1094/2010 of the European Parliament and of the Council of 24 November 2010. 3 - […]. 4 - […]. 5 - […]. 6-the information received by the Bank of Portugal in accordance with the provisions on the exchange of information may only be used:) [...]; b) […]; c) […]; d) within the framework of judicial proceedings which have as their object decisions taken by the Member of Government responsible for the area of finance or the Bank of Portugal in the exercise of their duties of supervision and regulation; e) […]; f) to ensure the proper functioning of the systems of compensation in the event of non-compliance, even though the potential actors in the market. 7-the Bank of Portugal can only communicate information received from entities of another European Union Member State or non-member countries with the express consent of such entities and, where appropriate, solely for the purposes authorized. Article 82 PRESIDENCY of the COUNCIL of MINISTERS 100 [...] The cooperation agreements referred to in paragraph 3 of article 81 may only be concluded when the information to be provided with guarantees of secrecy at least equivalent to those laid down in this general scheme and have as their aim the performance of supervisory functions who are committed to the entities concerned. Article 93 [...] 1-the supervision of credit institutions, financial companies, of mixed financial holding companies, in particular its prudential supervision, including the activity engaged in abroad, it is up to the Bank of Portugal, in accordance with its organic law and the present general scheme. 2 - […]. 3 - […]. 4-in the exercise of its powers, the Bank of Portugal takes into account the convergence in respect of supervisory tools and practices in law enforcement and regulations adopted pursuant to Directive No. 2013/36/EU and Commission Regulation (EU) no 575/2013, both of the European Parliament and of the Council of 26 June 2013, in particular in the framework of participation in the European system of financial supervisors. 5-for the purposes of the preceding paragraph, the Bank of Portugal: a) cooperates with the supervisory authorities and other members of the European system of financial supervisors, in accordance with the principle of loyal cooperation laid down in paragraph 3 of article 4 of the Treaty on European Union, by ensuring, in particular, an adequate and reliable flow of information;

PRESIDENCY of the COUNCIL of MINISTERS 101 b) Participates in the activities of the European banking authority and the colleges of supervisors;

c) Develops all efforts to comply with the guidelines and recommendations issued by the European banking authority and to respond to warnings and recommendations issued by the European systemic risk Board; d) Cooperates closely with the European systemic risk Board. 6-the pursuit of other legal duties of the Bank of Portugal should not interfere with or impair the performance of its legally required supervision, in particular within the framework of the European banking authority or the European systemic risk Board. Article 93 [...] 1-[...]:) [...]; b) […]; c) […]; d) aggregated statistical data relating to fundamental aspects of the implementation of the prudential framework, including the number and the nature of the corrective supervision measures taken pursuant to paragraph 1 of the PRESIDENCY of the COUNCIL of MINISTERS article 116-102 C; and) the general criteria and methodologies adopted to verify compliance with the requirements applicable to investors and institutions sponsoring institutions referred to in articles under the 409.º of the Commission Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; f) Without prejudice to the duty of secrecy, a brief description of the result of the exercise of supervision and the description of the measures imposed in cases of violation of the requirements referred to in the previous Sub-paragraph, identified annually. 2-the dissemination of information referred to in (a)) d) of the preceding paragraph shall be sufficient to allow a comparison with the methods adopted by the competent authorities of other Member States of the European Union. 3-the information specified in paragraph 1 (a)) d) of paragraph 1 shall be published in a format identical to that used by the competent authorities of the other Member States of the European Union and regularly updated and accessible from a single email address. 4-If the Bank of Portugal to exercise the option provided for in paragraph 3 of article 7 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, discloses the following information: a) the criteria used to determine whether there are significant impediments, in law or in fact, current or envisaged, a prompt transfer of own funds or repayment of liabilities; b) the number of parent credit institutions which benefit from the PRESIDENCY of the COUNCIL of MINISTERS exercise 103 the option provided for in paragraph 3 of article 7 of that regulation and, among these, the number of credit institutions with branches in third countries; c) aggregate basis for Portugal: i) the total amount of own funds on a consolidated basis of parent credit institutions which benefit from the exercise of the option provided for in paragraph 3 of article 7 of that regulation and which are held in subsidiaries in a third country; II) the percentage of total own funds on a consolidated basis of parent credit institutions which benefit from the exercise of the option provided for in paragraph 3 of article 7 of the said regulation, represented by own funds which are held in subsidiaries in a third country; III) the percentage of the total of own funds under article 92 of the regulation on a consolidated basis of parent credit institutions which benefit from the exercise of the option provided for in paragraph 3 of article 7 of the said regulation, represented by own funds which are held in subsidiaries in a third country. 5-If the Bank of Portugal to exercise the option provided for in paragraph 1 of article 9 of the Commission Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, discloses the following information: a) the criteria used to determine if there are impediments PRESIDENCY of the COUNCIL of MINISTERS significant 104, in law or in fact, current or envisaged , a prompt transfer of own funds or repayment of liabilities; b) the number of parent credit institutions which benefit from the exercise of the option provided for in paragraph 1 of article 9 of that regulation and the number of these parent credit institution with branches in third countries; c) aggregate basis for Portugal: i) the total amount of own funds of parent credit institutions which benefit from the exercise of the option provided for in paragraph 1 of article 9 of that regulation and which are held in subsidiaries in a third country; II) the percentage of total own funds of parent credit institutions which benefit from the exercise of the option provided for in paragraph 1 of article 9 of the abovementioned regulation represented by own funds which are held in subsidiaries in a third country; III) the percentage of total own funds required under article 87 of the regulation of parent credit institutions which benefit from the exercise of the option provided for in paragraph 1 of article 9 of the abovementioned regulation represented by own funds which are held in subsidiaries in a third country. Article 103 [...] 1-[...]. 2-[...]: PRESIDENCY of the COUNCIL of MINISTERS 105


the reputation of the proposed acquirer), taking particular account of the provisions of article 30-D in the case of a natural person; b) Suitability, qualifications, independence and availability of the members of the Board of Directors of the credit institution, to designate as a result of the acquisition, designed in accordance with the provisions of articles 30 to 33; c) […]; d) […]; e) […]. 3-the Bank of Portugal may request the proposed acquirer in writing additional information and elements, as well as perform the enquiries it deems necessary, to the 50th working day of the period referred to in the following paragraph. 4 - […]. 5-the order of elements or information made by the Bank of Portugal suspends the deadline of appreciation between the date of the application and the date of reception of the answer of the proposed acquirer. 6-[...]: the 30 business days), if the proposed acquirer have domicile or head office in a third country or there are subject to regulation, as well as in the case of the proposed purchaser not be subject to supervision in accordance with the provisions of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, or directives Nos 2009/65/EC of the European Parliament and of the Council of 13 of PRESIDENCY of the COUNCIL of MINISTERS July 2009 106, 2009/138/EC of the European Parliament and of the Council of 25 November 2009, and 2004/39/EC of the European Parliament and of the Council of 21 April 2004; b) […]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...]. Article 103 [...] 1-[...]: a) credit institution, insurance undertaking, reinsurance undertaking, investment firm or management company of undertakings for collective investment in transferable securities, in aceção of Decree-Law No. 63/2013, of May 10, authorised in another Member State of the European Union; b) […]; c) […]. 2 - […]. 3 - […]. 4 - […]. 5 - […].

PRESIDENCY of the COUNCIL of MINISTERS-107 6 the Bank of Portugal queries the database of sanctions of the European banking authority for the purposes of the examination of the proposed acquirer. Article 116 [...] 1-[...]: the) monitor the activity of credit institutions, financial companies and the mixed financial holding company; b) Monitor compliance with the rules governing the activity of credit institutions, financial companies and mixed financial holding companies, namely the assessment of compliance with the requirements of this general scheme and Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; c) Issue specific regulations directed at people or natural, in particular for conferences to adopt a certain behavior, cease certain conduct or refrain from repeating or to be remedied the deficiencies detected; d) [...]: and) issue recommendations; f) Regulate the activity of entities that oversees; g) [previous article)]. 2 - […]. Article 116-the [...]

PRESIDENCY of the COUNCIL of MINISTERS 108 1-taking into account the technical criteria set out in article 116-B, the Bank of Portugal analyzes the provisions, strategies, processes and mechanisms applied by credit institutions to comply with the present general rules and Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, and evaluates : a) the risks to which the credit institutions are or might be exposed;

b) the risks that a credit institution puts the financial system, taking into account the identification and quantification of systemic risk under article 23 of the Regulation (EU) no 1093/2010 of the European Parliament and of the Council of 24 November 2010 or, if applicable, the recommendations of the European systemic risk Board; (c)) the risks revealed by stress tests, taking into account the nature, scale and complexity of the activities of credit institutions. 2-based on the analysis and evaluation referred to in the preceding paragraph, the Bank of Portugal decides whether the arrangements, strategies, processes and mechanisms applied by credit institutions and the own funds and liquidity which have a sound management and coverage of their risks. 3 - […]. 4-the review and evaluation referred to in the preceding paragraph are updated at least annually to the credit institutions covered by the plan of activities referred to in article 116-i. 5-analysis and assessment carried out by the Bank of Portugal include the PRESIDENCY of the COUNCIL of MINISTERS 109 credit institutions exposure to interest rate risk arising from the banking book activities , and in particular measures in the case of institutions whose economic value suffer a reduction corresponding to more than 20% of their own funds, following a sudden and unexpected change in interest rates of 200 basis points or degree provided for in European banking authority guidelines on the matter.

6-the Bank of Portugal shall inform the European banking authority of the results of the review and evaluation referred to in this article where this analysis and assessment indicate that a credit institution may present a systemic risk in aceção of article 23 of the Regulation (EU) no 1093/2010 of the European Parliament and of the Council of 24 November 2010. Article 116-B [...] 1-in addition to the credit risk, and operational, market analysis and the assessment carried out by the Bank of Portugal, in accordance with the provisions of the preceding article, shall include at least the following: a) [...]; b) […]; c) […]; d) […]; e) […]; f) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 110 g) [...]; h) the geographic location of the exhibitions of credit institutions; I) business model of credit institutions; j) evaluation of systemic risk, in accordance with the criteria laid down in the preceding article. 2 - […]. 3 - […]. 4 - […]. 5-for the purposes of the decision to be carried out pursuant to paragraph 2 of the preceding article, the Bank of Portugal ponders if the value adjustments made in respect of positions included in the trading book, in accordance with the rules applicable as regards capital adequacy to market risks, allow the credit institution to sell or to ensure coverage of their positions in a short period without incurring significant losses under normal market conditions. 6-the analysis and assessment carried out by the Bank of Portugal include the exposure of credit institutions to the risk of excessive leverage reflected by indicators of excessive leverage, including the leverage ratio determined in accordance with the rules applicable. 7-the Bank of Portugal takes into account the business model of credit institutions to evaluate the adequacy of their leverage ratios and their arrangements, strategies, processes and mechanisms applied to manage the risk of excessive leverage. 8-the analysis and assessment carried out by the Bank of Portugal covering the provisions of government system of credit institutions, their culture and PRESIDENCY of the COUNCIL of MINISTERS 111 business values and the ability of the members of the Board of Directors to perform its functions. 9-for the purposes of the preceding paragraph, the Bank of Portugal has access, including the agenda and any supporting documents relating to meetings of the Board of Directors and of the respective committees, as well as the results of internal and external evaluation of the performance of the Board of Directors.

Article 116-C [...] 1-Portugal Bank may require credit institutions that do not comply with the rules governing their activity, or for which you have information showing that don't fulfill within a year, adopt with immediacy the measures or actions needed to resolve the situation. 2-[...]: a) Require credit institutions to hold own funds exceed the requirements established under Title VII or the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; b) […]; c) […]; d) Restrict or limit the activities, operations or networks of branches of credit institutions, or request the disinvestment in activities which have excessive risks for its solidity;

PRESIDENCY Of The COUNCIL Of MINISTERS And 112) [...]; f) […]; g) […]; h) limit or prohibit the payment of interest or dividends for a credit institution to shareholders or holders of additional own funds instruments 1 level if the ban does not constitute an event of default;


I) Impose additional reporting requirements or more often, in particular on capital and liquidity position; j) Impose specific requirements, in particular restrictions on the maturity mismatches between assets and liabilities; k) Require additional disclosures. 3-the Bank of Portugal should impose a specific own funds requirement in excess of the legally established minimum level credit institutions: a) that do not comply with the requirements laid down pursuant to article 393.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the points (f)) j) of paragraph 1 and paragraph 2 of article 14 and article 115-J; b) whose risks are not covered by own funds requirements established under Title VII or the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; c) Whose application of other measures appears not enough, by itself, PRESIDENCY of the COUNCIL of MINISTERS 113 to improve satisfactorily, in appropriate time limit, the rules, strategies, processes and mechanisms applied by credit institutions; (d)) Whose analysis and assessment referred to in paragraph 5 of article 116-B and paragraphs 6 and 7 of article 116-K can reveal that the non-compliance with the requirements for the application of the methods referred to in those provisions is likely to lead to inadequate capital requirements;

and) for which it is probable that the risks are underestimated despite the fulfilment of the requirements established by this general arrangement and by Commission Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; f) That communicate to the Bank of Portugal, in accordance with paragraph 5 of article 377.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, that the results of the stress tests referred to in that article significantly exceed their capital requirements for the trading book of correlation. 4-[...]: a) The quantitative and qualitative aspects of the self-assessment process of credit institutions provided for in article 115-J;

PRESIDENCY of the COUNCIL of MINISTERS 114 b) devices, procedures and mechanisms laid down in points (a) to (f)) j) of paragraph 1 and in paragraph 2 of article 14; c) the result of the analysis and assessment carried out in accordance with articles 116-A and K-116; d) the assessment of the systemic risk.



Article 116-G [...] 1-credit institutions shall implement specific, independent and autonomous means of reception, processing and archiving of the participations of serious irregularities related to its administration, accounting and internal supervision and organization of serious infractions to clues duties under this general scheme or in Commission Regulation (EU) no 575/2013, the European Parliament and of the Council June 26, 2013. 2-the means referred to in the preceding paragraph guarantees the confidentiality of the shares received and the protection of personal information of the complainant and the suspect of the practice of the infraction. 3-people who, by virtue of exercising functions on the credit institution, in particular in the areas of internal audit, risk management or monitoring compliance with legal and regulatory obligations (compliance), are aware of any serious irregularity PRESIDENCY of the COUNCIL of MINISTERS 115 related to administration, accounting and internal auditing organization of the credit institution or evidence of infringement the duties under this general scheme or in Commission Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013, which is susceptible of putting into financial imbalance situation, have the duty to participate to the supervisory body, in accordance with the safeguards laid down in this article. 4-the shares received pursuant to the preceding paragraphs are parsed, and prepared a report, which should contain the measures adopted or the rationale for not adopting any measures. 5-the shares carried out under this article, as well as the reports that they take place, should be kept on paper or in another durable medium which enables reproduction in full and unchanged, for a period of five years, and apply the provisions of article 120 6-shares made under the preceding paragraphs may not by itself serve as a foundation to the establishment by the credit institution of any disciplinary procedure, civil or criminal in respect to the author of the contribution, except if they are deliberate and manifestly unfounded. 7-[previous paragraph 6]. 8-the Bank of Portugal approves the regulations necessary to ensure the implementation of the rules provided for in this article. Article 117 [...] 1-[...].

PRESIDENCY Of The COUNCIL Of MINISTERS-116 2 [...]. 3 - […]. 4-the provisions of articles 30 to 32, with the necessary adaptations, 42A, 43-and in paragraphs 1 and 3 of article 115 shall apply to holding companies subject to social supervision of the Bank of Portugal.

Article 118 [...] 1-credit institutions is prohibited the granting of credit to entities based in offshore jurisdictions considered uncooperative or whose beneficiary last is unknown. 2-it is the Bank of Portugal set by a notice, the offshore jurisdictions considered as non-cooperative for the purposes of the preceding paragraph. 3-Notwithstanding the provisions of paragraph 1, should the institutions subject to the supervision of the Bank of Portugal, on the basis of their consolidated financial situation, register of operations corresponding to payment services provided by all entities included in the scope of prudential supervision that are receiving individual or collective based in any offshore jurisdiction, and shall inform the Bank of Portugal in accordance with the procedure laid down by this defined in regulation. 4-[Repealed]. 5-the provisions of paragraph 3 shall also apply to any other entities PRESIDENCY of the COUNCIL of MINISTERS authorized the 117 service payments in national territory. Article 120 [...] 1-credit institutions present the Bank of Portugal the information necessary for the assessment of compliance with the provisions of this general scheme and Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, in particular for verification: a) [...]; b) […]; c) […]; d) […]; e) […]; f) […]; g) […]; h) […]; i) […]. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […].

PRESIDENCY Of The COUNCIL Of MINISTERS 118 8-[...]. 9-credit institutions record all their operations and processes, in particular those subject to the provisions of this general scheme and Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 so that the Banco de Portugal may, at any time, check the respective compliance.



Article 121 [...] 1-statutory auditors employed by a credit institution and the external auditors, by legal requirement, submit to a credit institution audit services are required to report to the Bank of Portugal, as soon as possible, the facts or decisions concerning that institution of which they are aware in the exercise of its functions When such facts or decisions are susceptible to:) [...]; b) […]; c) […]. 2-the obligation referred to in the preceding paragraph shall also apply in respect of facts or decisions that the persons referred to in that paragraph will have knowledge in the context of similar functions, but carried on in company that keep with the credit institution where such PRESIDENCY of the COUNCIL of MINISTERS 119 functions are exercised a close relationship. 3 - […]. 4-the communication of facts or decisions referred to in paragraph 1 is made both to the Board of Directors of the credit institution, except reason ponderosa.

122 credit institutions authorised in other Member States of the European Union 1-credit institutions authorised in other Member States of the European Union and engaged in activity in Portugal, subject to the supervision of the authorities of the countries of origin, are not subject to the prudential supervision of the Bank of Portugal. 2-it is, however, the Bank of Portugal, in collaboration with the competent authorities of the countries of origin, oversee the liquidity of branches of credit institutions referred to in the preceding paragraph. 3 - […]. 4 - […]. Article 122a [...] 1-in the performance of their duties of supervision of credit institutions act, in particular through a branch, in more than one Member State of the European Union other than that of its registered office, the seat of PRESIDENCY of the COUNCIL of MINISTERS 120


Portugal shall collaborate with the competent supervisory authorities, and can exchange information relating to the structure of Directors and shareholder structure of credit institutions, as well as all information likely to facilitate the supervision, in particular as regards solvency, liquidity, deposit guarantee schemes, limits to large exposures, other factors that may influence the systemic risk that the credit institution represents , administrative and accounting procedures and internal control, inter alia to the identification of a significant branch. 2 - […]. 3-the Bank of Portugal lends immediately to the competent authorities of the host Member State any information and conclusions related to the supervision of the liquidity of branches, insofar as this information and conclusions relevant to the protection of depositors and investors in the host Member State. 4-the Bank of Portugal shall inform immediately the competent authorities of all the host Member States in case of occurrence or reasonable likelihood of liquidity problems, providing data on the planning and implementation of a recovery plan, as well as on any measures taken in this context of prudential supervision. 5-the Bank of Portugal may request the competent authorities of the Member State of origin to communicate and explain how they have been considered the information and conclusions provided. 6-where, following the communication of information and conclusions, the Bank of Portugal is satisfied that appropriate measures were not taken by the competent authorities of the home Member State may, after informing those authorities and the European banking authority, taking the PRESIDENCY of the COUNCIL of MINISTERS 121 appropriate measures to prevent new violations in order to protect the interests of depositors , investors and others to whom services are provided, or to protect the stability of the financial system. 7-the Bank of Portugal communicates and justifies, upon request, to the competent authorities of the host Member State the way they were considered the information and conclusions provided by the latter.

8-Case disagrees with the measures to be taken by the competent authorities of the host Member State, the Bank of Portugal may refer the matter to the European banking authority and require their assistance, in accordance with article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the Council of 24 November 2010. 123 Duties of institutions authorized in other Member States of the European Union] 1-For the purposes of article 122, institutions must submit to the Bank mentioned therein of Portugal the information that this considers necessary. 2 - […]. Article 124 inspection of branches of credit institutions authorised 1-[...]. 2 - […]. 3-the Bank of Portugal may, on a case by case basis, the checks and inspections of the activities carried out by branches of credit institutions the COUNCIL of MINISTERS PRESIDENCY 122 in the national territory and require a branch information about its activities, for the purposes of supervision, always it considers relevant for the purposes of Portuguese financial system stability. 4-Before carrying out such checks and inspections, the Bank of Portugal consulted the competent authorities of the Member State of origin.

5-After these checks and inspections, the Bank of Portugal shall forward to the competent authorities of the home Member State the information obtained and the conclusions that are relevant to the risk assessment of the credit institution or to the Portuguese financial system stability. 6-the Bank of Portugal has due regard to the information and conclusions communicated by the competent authorities of the host Member State in the determination of your supervisory examination, including the stability of the financial system of the host Member State. 7-verifications and inspections of branches are made according to the Portuguese law. Article 130 1-Jurisdiction [...]. 2-[Repealed]. Article 131 [...]

PRESIDENCY of the COUNCIL of MINISTERS 123 1-without prejudice to the supervision on individual basis, institutions with headquarters in Portugal which are branches of one or more credit institutions or financial institutions, or in holding a participation shall be subject to supervision on the basis of their consolidated financial situation.

2-subject to the supervision of individual credit institutions with headquarters in Portugal, whose parent undertaking is a financial holding company or a mixed financial holding company with headquarters in a Member State of the European Union, shall be subject to supervision on the basis of the consolidated financial situation of the parent company. 3-[...]:) When a credit institution exercises a significant influence over another credit institution or financial institution, even if it does not stop her any participation; b) When two or more credit institutions or financial institutions are placed under single direction, although not statutory or contractually stipulated; c) where two or more credit institutions or financial institutions have administrative or supervisory bodies composed mostly by the same people. 4 - […]. 5-the Bank of Portugal, regulation, fixed terms in credit institutions, financial institutions or companies of PRESIDENCY of the COUNCIL of MINISTERS services 124 may be excluded from the ancillary supervision on a consolidated basis. 6-the Bank of Portugal shall forward to the European banking authority, the European Commission and the competent authorities of the Member States concerned the list of financial holding companies and mixed financial holding companies subject to its supervision on a consolidated basis.

Article 132 [...] 1-the Bank of Portugal carries out the supervision on a consolidated basis when a financial holding company or a mixed financial holding company has its headquarters in Portugal and is the parent company of credit institutions based in Portugal and other Member States of the European Union. 2-credit institutions with headquarters in Portugal which are undertaking a financial holding company or a mixed financial holding company with headquarters in another Member State of the European Union, also find another credit institution-based subsidiary, shall be subject to consolidated supervision exercised by the supervisory authority of that Member State. 3-credit institutions with headquarters in Portugal whose financial holding company or mixed financial holding company has its headquarters in a Member State of the European Union, part of a group in which the remaining credit institutions have established in various Member States and have as their parent companies a financial holding company or a mixed financial holding company also based in different Member States shall be subject to consolidated supervision exercised by the supervisory authority of the institution of PRESIDENCY of the COUNCIL of MINISTERS whose credit 125 balance sheet total the highest value. 4-credit institutions with headquarters in Portugal, whose parent undertaking is a financial holding company or a mixed financial holding company with headquarters in another Member State of the European Union, and other credit institutions branches in Member States other than its headquarters, shall be subject to consolidated supervision exercised by the supervisory authority which has authorised the credit institution whose balance sheet total is the highest. 5-[Repealed]. Article 132-the parent undertakings in third countries 1-where a credit institution, the parent undertaking of which is a credit institution, a financial holding company or a mixed financial holding company headquartered in a third country, is not subject to supervision on a consolidated basis in terms equivalent to those of this section should be checked if is subject, by a supervisory authority of the third country , the equivalent supervision. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6-as an alternative to the preceding paragraph, the Bank of Portugal, when the responsible authority and after consulting the authorities referred to in paragraph 3, may adopt other appropriate methods which make it possible to achieve the objectives of the supervision on a consolidated basis, namely PRESIDENCY of the COUNCIL of MINISTERS 126


requiring the establishment of a financial holding company or a mixed financial holding company based in the European Union and applying the provisions on consolidated supervision. 7 - […]. Article 132-C [...] 1-[...]. 2-before taking the decision referred to in the preceding paragraph, the competent authorities shall give the parent credit institution in the European Union, the parent financial holding company in the European Union, to the mixed financial holding company Eu parent credit institution or whose total balance sheet presents the highest value the opportunity of expressing their views on the decision. 3-the Bank of Portugal shall notify the Commission and the European banking authority of the agreements concluded under the provisions of paragraph 1, when it is named as the competent authority. Article 134 [...] 1-[...]. 2 - […]. 3-When the parent undertaking of one or more credit institutions is a mixed-activity holding company, a financial holding company or a mixed financial holding company, these and the respective affiliates, including subsidiaries that are not included within the scope of supervision on a consolidated basis, are obliged to submit to the Bank of Portugal all information useful for the PRESIDENCY of the COUNCIL of MINISTERS 127 supervision. 4 - […]. 5-the Bank of Portugal may, where necessary for supervision on a consolidated basis of credit institutions, or send checks and forensic examinations on financial companies, mixed companies or mixed financial holding companies and the respective subsidiaries, as well as in societies of ancillary services. 6-the branches of any credit institution, financial holding company or mixed financial holding company not included in the scope of supervision on a consolidated basis are required to submit to the Bank of Portugal all relevant information for the exercise of supervision. Article 135 [...] 1-[...]. 2-[...]: a) the competent authorities of the Member States of the European Union financial companies have headquarters, mixed financial holding companies or companies that are parent companies of credit institutions based in Portugal; b) the competent authorities of the Member States of the European Union in which have headquarters branches of the mentioned financial companies or mixed financial holding companies. 3 - […]. Article 135-the [...]

PRESIDENCY of the COUNCIL of MINISTERS 128 1-it is the Bank of Portugal, in its capacity as competent authority responsible for the exercise of supervision on a consolidated basis of credit institutions in the EU and mother of credit institutions controlled by Eu parent financial holding company or mixed financial holding companies in the European Union: the mother) [...];

b) the planning and coordination of supervisory activities in normal activity, including those set out in articles 116-116-C, regarding self-assessment of credit institutions and public disclosure of information, in cooperation with the competent authorities involved; c) planning and coordination of supervisory activities in collaboration with the competent authorities concerned and, if necessary, with the national central banks, in preparation for emergency situations and during such situations, in particular a negative evolution in the situation of credit institutions or financial markets. 2-the Bank of Portugal may inform the European banking authority in cases where the competent authorities referred to in the previous article does not cooperate with the Bank of Portugal for the exercise of the functions mentioned in paragraph 1 and request their assistance, pursuant to article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the Council November 24, 2010, without prejudice to the assistance at the initiative of the European banking authority itself.

PRESIDENCY Of The COUNCIL Of MINISTERS-129 3 [...].



Article 135-B [...] 1-the Bank of Portugal, in its capacity as authority responsible for the exercise of supervision on a consolidated basis, shall establish colleges of supervisors to facilitate the exercise of the functions referred to in articles 135-, 135-C and 137-A and, subject to the requirements set out in article 82, should, where appropriate, to ensure appropriate coordination and cooperation with the relevant competent authorities of third countries. 2 - […]: a) […]; b) […]; c) Determination of the plan of supervisory activities based on risk assessment of the Group intended to analyze the provisions, strategies, processes and mechanisms applied by credit institutions to comply with the provisions of the applicable directives of the European Union, as well as to evaluate the risks to which the credit institutions are or might be exposed; d) […];

PRESIDENCY of the COUNCIL of MINISTERS and 130) application consistently in all entities of a banking group, prudential requirements laid down, without prejudice to the legally exercised options and colleges; f) […]. 3 - […]. 4 - […]. 5-[...]: a) the competent authorities responsible for the supervision of subsidiaries of an Eu parent institution, of a parent financial holding company in the European Union or of a mixed financial holding company-mother in the European Union; b) […]; c) […]; d) […]; e) […]. 6 - […]. 7-in its decisions, the Bank of Portugal must take into account the relevance, to the authorities referred to in the preceding paragraph, the supervising activity planning or coordinating, in particular the potential impact on the stability of the financial system of the Member States concerned referred to in paragraph 3 of article 93 and the obligations referred to in article 40-. 8-the Bank of Portugal must without prejudice to the duty of secrecy, inform the European banking authority of the activities of the colleges of supervisors, including in emergency situations, and communicate to the competent authority all information of particular relevance to the PRESIDENCY of the COUNCIL of MINISTERS 131 of supervision. 9-in the case of disagreement between competent authorities in relation to the functioning of colleges of supervisors, the Bank of Portugal may refer the matter to the European banking authority and require their assistance, in accordance with article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the Council of 24 November 2010. Article 135 C [...] 1-the authority responsible for supervision on a consolidated basis and the competent authorities responsible for supervision of subsidiaries in a Member State of the European Union, of a parent credit institution in the European Union, of a parent financial holding company in the European Union or of a mixed financial holding company-mother in the European Union should undertake the necessary efforts to reach a joint decision with respect : a) the process of self-evaluation of internal capital adequacy and the process of review and assessment, to determine the adequacy of the consolidated level of own funds held by the group with regard to their financial situation and risk profile; b) at the level of own funds required for the implementation of the corrective measures provided for in paragraph 3 of article 116-C to each of the entities banking group on a consolidated basis; c) measures to review and resolve any issues and significant findings related to the supervision of liquidity, in particular regarding the fitness of the Organization and of the PRESIDENCY of the COUNCIL of MINISTERS treatment 132 liquidity risks, and related to the need to establish liquidity requirements specific to the institution. 2-[...]: a) for the purposes of (a)) and (b)) of the preceding paragraph, be taken within four months after delivery by the authority responsible for supervision on a consolidated basis a report containing the risk assessment of the Group; b) for the purposes of point (c)) of the preceding paragraph, be taken within one month of submission by the authority responsible for supervision on a consolidated basis a report on the evaluation of the liquidity risk profile of the group. c) [previous subparagraph (b))]; d) [previous subparagraph (c))]. 3 - […]. 4-in the absence of a joint decision of the competent authorities within the time limits laid down in paragraph 2, the decision should be taken on a consolidated basis by the authority responsible for supervision on a consolidated basis after duly considering the risk assessment of subsidiaries performed by relevant competent authorities. 5-the competence to make decisions on an individual or sub-consolidated basis is competent authorities responsible for the supervision of subsidiaries of parent credit institutions of the European Union, financial companies of the European Union or of mixed financial holding companies of the European Union, once considered the views and reservations expressed by the authority responsible for supervision on a consolidated basis.

PRESIDENCY Of The COUNCIL Of MINISTERS 133


6-If, before the end of the time limit laid down in paragraph 2 or the adoption of a joint decision, any competent authorities involved have reported the matter to the European banking authority, under the terms and for the purposes of article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the Council of 24 November 2010, the authority responsible for supervision on a consolidated basis must wait for the decision adopted by the European banking authority and take its decision in accordance with the decision adopted by the competent authority. 7-the decisions referred to in paragraphs 4 and 5 should contain to include the respective document fundamentals and takes into account risk assessments, reviews and reservations of the other competent authorities expressed during the periods laid down in paragraph 2. 8 - […]. 9 - […]. 10-[...]. 11-the decisions referred to in paragraphs 1, 4 and 5 are updated annually or, in exceptional circumstances, where the competent authority responsible for the supervision of subsidiaries of an institution of the European Union, of a parent financial holding company of the European Union or of a mixed financial holding company of the European Union submits a reasoned request in writing to the authority responsible for supervision on a consolidated basis in order to update the decision on the application of corrective measures provided for in paragraph 3 of article 116-C or the decision on liquidity requirements pursuant to article 116-m. 12-[...].

PRESIDENCY of the COUNCIL of MINISTERS Article 134 136 [...] Where a credit institution, a financial holding company, a mixed financial holding company or a mixed-activity holding company controls one or more subsidiaries subject to the supervision of Instituto de Seguros de Portugal, this provides to the Bank of Portugal the information necessary for supervision on a consolidated basis.

Article 137 [...] 1-for the purposes of supervision on a consolidated basis, of the financial situation of credit institutions established in other Member States of the European Union, the Bank of Portugal must pay to the respective supervisory authorities the information in its possession or that can get institutions to supervise and to be reported by those institutions. 2 - […]. 3 - […]. 137-B [...] 1-[...]. 2 - […]. 3-the Bank of Portugal, acting as the competent authority in charge of PRESIDENCY of the COUNCIL of MINISTERS 135 for authorising the subsidiary of a parent undertaking which is a credit institution may, by bilateral agreement, and inform the European banking authority, delegate their responsibility for supervision to the competent authorities which authorized and supervise the parent undertaking. 137-C [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5-the Bank of Portugal, in its capacity as authority responsible for supervision on a consolidated basis of Eu parent credit and credit institutions controlled by a parent financial holding companies or mixed financial holding companies based in European Union's mother, provides the competent authorities of other Member States exercising the supervision of subsidiaries of such parent companies all relevant information. 6 - […]. 137-D [...] 1-[...]. 2-[...]: a) identification of the legal framework, organization and Government of the group, including all regulated entities and no PRESIDENCY of the COUNCIL of MINISTERS regulated 136 and significant branches of the group as well with the parent companies, and the competent authorities of the regulated entities in the Group; b) […]; c) […]; d) […].

145-B [...] 1-resolution measures, having regard to the purposes of the resolution set out in the previous article, seeks to ensure that: a) the credit institution's shareholders take the loss as a priority of the institution concerned; b) creditors of the credit institution assume then, and on a level playing field, the remaining losses of the institution concerned, in accordance with the ranking of priority of the various classes of creditors; c) No creditor of the credit institution may take a loss greater than the one who would take over if that institution had gone into liquidation. 2 - […]. 3-If the liquidation of the credit institution's PRESIDENCY of the COUNCIL of MINISTERS as object of resolution 137, creditors of the institution whose credits have not been transferred to another credit institution or a Bank, assumed a higher loss than the estimated amount, according to the assessment referred to in paragraph 6 of article 145-F and paragraph 4 of article 145-H that would assume if the institution had gone into liquidation procedure in time immediately before the application of the measure of resolution, have the creditors entitled to this difference of Resolution Fund. Article 145-F [...] 1-[...]. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6-for the purposes of paragraph 3 of article 145-B, the assessment referred to in the preceding paragraph must be complemented by an estimate of the level of recovery of credits of each class of creditors, according to the order of priority established in the law, in a scenario of liquidation of the credit institution immediately before the time of application of the measure of resolution. 7-Portugal Bank determines the nature and amount of the financial support to be provided by the Settlement Fund, if necessary, including in particular the provision of guarantees and loans to the credit institution or to the institution selling acquirer, in order to preserve the value of assets and liabilities and facilitate the PRESIDENCY of the COUNCIL of MINISTERS 138 implementation of disposal referred to in paragraph 1. 8-[previous paragraph 7]. 9-When the value of the liabilities disposed of is higher than the value of the assets, the amount of the financial support provided for the purpose of compensating the difference in accordance with paragraphs 7 and 8 constitute claims Resolution Fund, guarantee fund of deposits or the guarantee fund of the Mutual Agricultural Credit on the credit institution alienator. 10-[previous paragraph 9]. 11-[previous paragraph 10]. 12-[previous paragraph 11]. 13-[previous paragraph 12]. 14-[previous paragraph 13]. 15-[previous paragraph 14]. 16-[previous paragraph 15]. 17-the payment referred to in the preceding paragraph may be made through the transfer to the acquiring institution of new assets of the credit institution or money from selling the Resolution Fund, guarantee fund of deposits or the guarantee fund of the Mutual Agricultural Credit, pursuant to paragraphs 7 and 8. 18-[previous paragraph 17]. 19-in the selection of the assets, liabilities, off-balance-sheet items and assets under management to divest under this article shall apply, mutatis mutandis, the provisions of paragraph 2 of article 145-H. 145-H PRESIDENCY of the COUNCIL of MINISTERS 139 [...] 1-[...]. 2-[...]: a) The respective shareholders, whose participation at the time of transfer is equal to or greater than 2% of the share capital, the persons or entities that in the two years preceding the transfer had participation equal to or greater than 2% of the share capital, the members of the administrative or supervisory body, the statutory auditors or audit firms or people with similar status in other companies in a dominant position over the latter nor of Group with the institution; b) […]; c) […]; d) […]. 3 - […]. 4-The assets, liabilities, off-balance-sheet items and assets under management selected pursuant to paragraph 1 shall be subject to an evaluation, reported to the time of transfer, undertaken by an independent entity designated by the Bank of Portugal, on deadline set by this, at the expense of the credit institution, and the same evaluation, for the purposes of paragraph 3 of article 145-B , be PRESIDENCY of the COUNCIL of MINISTERS 140 complemented by an estimate of the level of recovery of credits of each class of creditors, according to the order of priority established in the law, in a scenario of liquidation of the credit institution originated in the moment immediately preceding the application of the measure of resolution. 5 - […].

6-the Bank of Portugal determines the nature and amount of the financial support to be granted by the Resolution Fund, if necessary, for the creation and development of the Bank's activity, in particular through the granting of loans to the Bank of transition for any purpose, the provision of the funds deemed necessary for carrying out the Bank's capital increase of transition or the provision of guarantees. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...]. 12-[...]. 13-[...]. Article 145-I [...]

PRESIDENCY Of The COUNCIL Of MINISTERS-141 1 [...]. 2 - […]. 3-[...]: a) the resolution of all amounts provided pursuant to paragraph 6 of article 145-H;


b) deposit guarantee fund or the guarantee fund of the Mutual Agricultural Credit, of all amounts provided pursuant to paragraph 7 of article 145-h. 4-[...]. 5 - […]. 6 - […]. Article 152 [...] 1-the measures provided for in this title shall be applicable, mutatis mutandis, to parent companies that have subsidiaries, on) (aceção) of paragraph 1 of Article 2A, one or more credit institutions or investment firms engaged in the activities referred to in paragraph 1 (b)) and c) of paragraph 1 of article 199.º-the subject to supervision on a consolidated basis as long as you check the legal assumptions of its application in respect of any of its subsidiaries. 2 - […]. 3 - […]. Article 153-M PRESIDENCY of the COUNCIL of MINISTERS 142 [...] 1-[...].



2-the resources made available pursuant to the preceding paragraph which are not used for the creation of the capital stock of the Bank to give the Fund a transition credit law on the participant's institution as object of a resolution on the transition or the acquiring institution, as appropriate, in the amount corresponding to those resources and benefiting of the liens provided for in paragraph 3 of article 166-a. 3-[...]. Article 155 [...] 1-[...]. 2-the Fund may also intervene in the framework of the implementation of measures for a resolution, pursuant to paragraph 8 of article 145-F and paragraph 7 of article 145-H and in accordance with the arrangements laid down in article 167-a. 3-[...]. 4 - […]. 5 - […]. 6 - […].

PRESIDENCY of the COUNCIL of MINISTERS Article 143 167 [...] 1-[...]:) [...]; (b)) the remainder up to the limit laid down in paragraph 1 of article 166, within 20 working days. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […]. 10-[...]. 11-[...]. Article 184.º branches of financial corporations branches of credit institutions in Member States of the European Union 1-the provisions of article 36, paragraph 1 of article 37 and articles 38 to 40 shall apply to the establishment in Member States of the European Union, to branches of financial companies based in Portugal, when these financial corporations, in turn, are subsidiaries of one or more of the PRESIDENCY of the COUNCIL of MINISTERS 144 credit institutions are subject to the Portuguese law , enjoy legal regime to allow them the exercise of one or more activities listed in points 2 to 12:15 of annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, and meet the following conditions: (a)) [...]; b) […]; c) […]; d) […]; e) […]; f) […]. 2-The notification referred to in paragraph 1 of article 37 shall be the amount, the composition and requirements of the own funds of the finance company. 3 - […]. Article 188 branches of branches of credit institutions from European Union countries 1-is governed by articles 44 and 46 to 56 the establishment, in Portugal, to branches of financial institutions subject to the law of other European Union Member States when these institutions having the character of credit institution branch or common branch of several credit institutions , enjoy regime which allows them to exercise one or more of the activities listed in points 2 to 12:15 of annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2103, and meet the following conditions: (a)) [...];

PRESIDENCY Of The COUNCIL Of MINISTERS 145 b) [...]; c) […]; d) […]; e) […]; f) […]. 2 - […]. 3 - […]. 4 - […]. Article 189-[...] 1-[...]. 2-the provisions of article 29, it shall apply to the establishment of the branches referred to in the preceding paragraph, when they propose to exercise in Portugal some activity of brokering financial instruments. Article 196.º prudential supervision 1-except as provided in law, is applicable to financial corporations the provisions of title VII, with the following changes: a) are not applicable to articles 116-D and 116; b) financial corporations referred to in subparagraphs vii) x)) (b) of paragraph 1 of article 6 shall not be subject to the provisions of articles 102 to 111, and purchasers of shares greater than or equal to 10% of the capital or of the voting rights of finance company PRESIDENCY of the COUNCIL of MINISTERS not covered by Title X 146-to communicate that fact to the Bank of Portugal laid down in article 104; in this situation, the Bank of Portugal may require the provision of the information referred to in paragraph 5 of article 102 and paragraph 3 of article 103 and use the powers provided for in article 106 2-When a financial institution headquartered abroad, providing services or has representative office in Portugal, the country pursues the activity of brokering financial instruments , the supervision of this activity competes also in securities market Commission. Article 199.º [...] […]: 1.º […]: a) […]; b) […]; c) […]; d) […]; e) […]; f) the underwriting and placement, with or without guarantee, financial instruments referred to in paragraph 3; g) […].

PRESIDENCY of the COUNCIL of MINISTERS 147 2 [...]; 3 [...]; 4 [Repealed]; 5: [...];

6 «holding company» investment funds, the company whose usual activity of which is the management of collective investment authorised in accordance with the legal regime of collective investment, defined in specific legislation. Article 199.º-C [...] […]: a) […]; b) […]; (c)) shall not apply the provisions of paragraph 3 of article 16; d) […]; e) [Repealed]; f) […]; g) By decision of the European Commission may be limited authorisations for the creation or acquisition of shareholdings PRESIDENCY of the COUNCIL of MINISTERS qualified 148 in investment firms dominated by collective or natural persons of third countries, or suspended applications for authorization of their respective assessments, although already presented. Article 199.º-D [...] 1-[...]:) [...]; b) […]; c) […]; d) articles 39 and 43, the reference to the operations listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, is replaced by the reference to investment services and activities and ancillary services set out in sections A and B of annex I to Directive No 2004/39/EC of the European Parliament and of the Council of 21 April 2004, and the ancillary services may only be provided together with an investment service and/or activity; e) […]; f) […]; g) […]; h) […]. 2 - […]. 3 - […].

PRESIDENCY Of The COUNCIL Of MINISTERS-149 4 [...]. 5 - […]. 6 - […]. Article 199.º-activity, in Portugal, of investment firms established in other Member States of the European Union 1-[...]:) [...]; b) […]; c) […]; d) in articles 52 and 60, the reference to the operations listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, is replaced by the reference to investment services and activities and ancillary services set out in sections A and B of annex I to Directive No 2004/39/EC of the European Parliament and of the Council of 21 April 2004, and the ancillary services may only be provided together with an investment service and/or activity; e) […]; f) […]; g) […]; h) […]; I) article 56 is only applicable to investment firms which are authorised to provide the services of the PRESIDENCY of the COUNCIL of MINISTERS 150 investment of dealing on own account and placement with a firm one or more financial instruments, in aceção, respectively, (c)) and f) of point 1 of article 199.º-a. 2-[...].

3-for the purposes of this article, as the supervisory authority of the Member State of origin that we, in the EU Member State concerned, has been designated as contact point in accordance with article 56 of Directive No. 2004/39/EC of the European Parliament and of the Council of 21 April 2004. Article 199.º-I [...] 1-the provisions of articles 35-, 42-, 43-, and 102 to 111 is also applicable to investment firms, management companies of investment funds and the taking of shares in these same companies. 2 - […]. 3 - […]. 4 - […]. 5 - […]. 6 - […]. Article 199.º-L PRESIDENCY of the COUNCIL of MINISTERS [...] 151 1-investment funds companies furniture applies the provisions of this title with the exception of point 5 of article 199.º-the articles 199.º-C 199.º-H, understanding the scope of competences of paragraph 2 of article 122, the previous article, that provided for in subparagraph (e)) of paragraph 4. 2-[...]: a) does not apply paragraph 3 of article 16; b) […]; c) By decision of the European Commission may be limited authorizations for the establishment or acquisition of qualifying holdings in an investment firm dominated by collective or natural persons of third countries, or suspended applications for authorization of their respective assessments, although already presented; d) [Repealed]; e) […]. 3 - […]: a) […]; b) […]; c) […]; d) […]; e) […]; f) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 152


g) articles 39 and 43, the reference to the operations listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, is replaced by a reference to the activity and services listed in paragraphs 2 and 3 of article 6 of Directive No. 2009/65/EC of the European Parliament and of the Council July 13, 2009; h) […]; i) […]. 4 - […]: a) […]; b) […]; c) […]; d) in articles 52 and 60, the reference to the operations listed in annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013, is replaced by a reference to the activity and services listed in paragraphs 2 and 3 of article 6 of Directive No. 2009/65/EC of the European Parliament and of the Council July 13, 2009; e) […]; f) […]; g) […]. Article 201 [...] 1-[...]: PRESIDENCY of the COUNCIL of MINISTERS the 153) [...]; b) Facts committed in foreign territory that are responsible credit institutions and financial corporations with headquarters in Portugal and which operate through branches or providing services, as well as persons who, in relation to such entities, in any of the situations referred to in paragraph 1 of article 203, or hold shares; c) […]. Article 202 responsibility for 1-contraordenações by the practice of contraordenações under this general scheme may be liable, jointly or not, individuals and collective people, even if irregularly incorporated, as well as associations without legal personality. 2-is punishable as the author of the contraordenações provided for in this general scheme everyone who, by action or omission, contributing causally to your verification. Article 203 [...] 1-people collective and similar entities referred to in the preceding article are responsible for contraordenações committed by the holders of the respective positions of administration, management, direction or leadership, in the performance of their duties, as well as by the contraordenações committed by agents, representatives or employees of the collective entity in acts performed in the name and on behalf of this.

PRESIDENCY Of The COUNCIL Of MINISTERS-154 2 [...]. 3-the invalidity or ineffectiveness of legal acts in which merges the relationship between the individual and the collective entity agent are without prejudice to the responsibility of this.

Article 204 Responsibility of individuals 1-people collective responsibility and similar entities does not exclude individual liability of their respective agents. 2-without prejudice to the individual responsibility of agents representing another circumstance of the cool type of breach require certain personal elements and these only occur in person, in entity equivalent or one of the officers involved, nor the fact that, being required to practice the fact that agent on your interest, have the agent acted in the interests of the represented. 3-the responsibility of holders of positions of management or direction of the collective people and similar entities can be especially toned down when, cumulatively, are not directly responsible for or area where it was found the practice of infringement and their liability merges only that, knowing or should know the practice of infringement, they have not adopted the appropriate measures to immediately halt. Article 205 155 PRESIDENCY of the COUNCIL of MINISTERS [...] 1-the attempt and negligence is always punishable. 2-In case of negligent infringement the maximum fine provided for the infraction is reduced to half. 3-In case of attempted the fine applicable shall be anticipated to the consummate illicit, especially toned down. 4-[Repealed]. Article 206 [...] 1-the determination of the extent of the fine and penalties do according to concrete fact, awareness of agent and the demands of prevention, taking into account the individual or collective nature. 2-in determining the unlawfulness of the fact, the agent's fault and prevention requirements, account shall be taken, inter alia, to the following circumstances:) [...]; b) […]; c) [Repealed]; d) [Repealed]; e) degree of participation of the accused in the Commission of the infraction; f) intensity of wilful misconduct or negligence; g) existence of a benefit, or intention to obtain, for themselves or others;

PRESIDENCY of the COUNCIL of MINISTERS 156 h) existence of damage caused to third for the infraction and its importance when it is determinable; I) Duration of the infraction; j) If the above consist in omission of an act because, the time elapsed since the date on which the Act should have been practiced.

3-for individuals, in determining the unlawfulness of the fact, the fault of the agent and of the demands of prevention also meets the following conditions: the) level of responsibilities, scope of functions and sphere of action in collective person concerned; b) [Repealed]; c) […]. 4-in determining the applicable sanction has into account:) [...]; b) […]; c) the existence of acts of concealment intended to impede the discovery of infringement; d) agent acts intended to, at its option, repair the damage or prevent the dangers caused by the infringement; and) the level of cooperation of the accused. 5-[Repealed].

PRESIDENCY Of The COUNCIL Of MINISTERS-157 6 [...]. Article 208 [...] 1-where a person should respond simultaneously as a crime and the above title for the practice of the same facts, the processing of contraordenações to be the Bank of Portugal and the respective decision fit always to this authority.

2-where a person should respond only by way of crime, even if the facts are also punishable under the above title, can the criminal judge to apply the penalties referred to above in question. Article 209 [...] 1-the contraordenações procedure provided for in this scheme prescribes within five years. 2-in cases where there has been concealment of the facts that are the subject of the above process, the limitation period shall run only from the knowledge, on the part of the Bank of Portugal, of these facts. 3-the term of prescription of sanctions is five years from the day they become final or made absolute decision which determined its application. 4-Notwithstanding other causes of suspension or interruption of the limitation period, the limitation period of the above procedure is suspended from the notification of the order carrying out preliminary examination from the PRESIDENCY of the COUNCIL of MINISTERS decision feature 158 apply sanction to the notification of the final decision of the appeal. 5-When the infractions are punishable with a fine up to € 1,500,000.00, the case of people, or with a fine up to € 500,000.00, in the case of natural persons, the suspension provided for in paragraph 1 may not exceed 30 months.

6-When the infractions are punishable with a fine of more than € 1,500,000.00, the case of people, or with a fine of more than € 500,000.00, in the case of natural persons, the suspension provided for in paragraph 4 may not exceed 5 years. 7-the period referred to in paragraphs 5 and 6 is elevated to double if there has been recourse to the Constitutional Court. Article 210.º [...] […]: a) […]; b) […]; c) […]; d) […]; e) […]; f) […]; g) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 159 h) [...]; i) […]; j) […]; l) violating the rules on registration of operations listed in paragraph 3 of article 118;

m) violations of mandatory precepts of this regime and the specific legislation, including the legislation of the European Union, which governs the activity of credit institutions and financial societies, not provided for in the above and in the following article, as well as the regulations issued pursuant to or for the execution of the mentioned principles. Article 211 [...]-1 Are punishable with a fine of € 10,000 to € 5 000 000 or € 4 000 to 5 000 000 €, depending on whether it applied to collective entity or natural person, the following violations: a) [...]; b) […]; c) […]; d) […]; e) […]; f) […];

PRESIDENCY Of The COUNCIL Of MINISTERS 160 g) [...]; h) failure to observe relationships and prudential limits set out in paragraph 2 of article 96, without prejudice to paragraph 3 of that article, as well as of articles 97, 101, 109, 112 and 113, or other certain on normal government General in charge of finance or the Bank of Portugal pursuant to article 99, when her serious injury or is likely to occur to the financial stability of the organization concerned; i) […]; j) […]; l) […]; m) […]; n) […]; o) […]; p) […]; q) omission of communication due to the Bank of Portugal, in accordance with paragraph 1 of article 32, as well as the omission of the measures referred to in paragraphs 3 and 6 of article 30-C and paragraph 5 of article 32; r) […]; s) […]; t) the violation of the rule on granting credit in paragraph 1 of article 118; u) […]; v) non-compliance with the obligations laid down in point (b)) of paragraph 11 of the PRESIDENCY of the COUNCIL of MINISTERS article 145-161 (F) and paragraph 10 of article 145-H; x) […]; z) […]; AA) [...]; BB) [...];


CC) communications failure due to competent authorities with regard to the acquisition, disposition and possession of qualifying holdings foreseen in articles 102, 107 and 108; DD) the acquisition of qualifying holding despite the opposition of the competent authority, in violation of article 103; EE) the omission of the information and communications due to the competent authorities referred to in paragraph 2 of article 108 of the present regime and in articles 99 and 101, in paragraph 1 of Article 394, paragraphs 1 and 2 of article 415 and in paragraph 1 of article 430.º of Regulation (EU) no 575/2013, the European Parliament and of the Council June 26, 2013, within the time limits set out, as well as the provision of incomplete or inaccurate; FF) the failure to comply with the capital adequacy ratios referred to in article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; Gg) failure to comply with the conservation plan of own funds provided for in article 138-AD or measures imposed by the Bank of Portugal pursuant to same;

PRESIDENCY of the COUNCIL of MINISTERS 162 hh) the non-compliance of national measures adopted pursuant to article 458.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; II) the omission of implementing systems of Government, in violation of article 14;

JJ) non-compliance with the duty to have repeated liquid assets adequate, in breach of article 412.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; KK) failure to comply with the limits to large exposures set out in Article 395.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; LL) exposure to the credit risk of a securitisation position, with failure to observe the conditions laid down in article under the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; mm) the omission of information disclosure or the disclosure of information is incomplete or inaccurate, in breach of paragraphs 1 to 3 of article 431.º or article 451.º, paragraph 1 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; nn) payment to holders of instruments included in the own funds of the credit institution, whenever such payments are banned, in breach of articles 138-AB to 138-AD of the PRESIDENCY of the COUNCIL of MINISTERS this scheme or 163 articles 28, 51 or 63 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; OO) permission to one or more people that settlements are not done with articles 30, 31 and 33 to become or continue to be members of the administrative or supervisory body.

2-in the case of a collective person, the maximum limit of the fine applicable shall be elevated to abstractly amount corresponding to 10% of the total annual net turnover of the financial year preceding the date of the judgment, including the gross income consists of interest and similar income, the income from shares and other variable-yield securities or fixed and commissions pursuant to article 316 of Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013, where that amount is determinable and above that limit. 3-For the collective people which are subject to an accounting framework different from what is laid down in article 316 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the calculation of the net annual turnover, referred to in the preceding paragraph, is based on data that better reflect the provisions of the said article. 4-If the collective person is an affiliate, the gross income is gross income resulting from the consolidated accounts of the parent company in the preceding financial year. Article 211-the PRESIDENCY of the COUNCIL of MINISTERS 164 [...] Without prejudice to the provisions of subparagraph (a)) of paragraph 1 of the following article, if twice the economic benefit obtained by the infringer is determinable and the ceiling of the fine applicable, this is elevated to that value.

Article 212.º [...] 1-Together with the fines provided for in articles 210.º and 211, can be applied to account for any infringement the following ancillary penalties: the) loss of economic benefit out of the infringement; b) loss of the object of the infraction and of objects owned by the agent in connection with the practice of the infraction; c) publication of the final decision or final; d) When the defendant is a natural person, the inhibition of social positions and functions of Directors, management, direction or leadership in any entities subject to the supervision of the Bank of Portugal, for a period of six months to three years, in the case of article 210.º, or from one to 10 years, in the case of article 211; e) suspension of the exercise of voting rights allocated to the holders of shares to any entities subject to the supervision of the Bank of Portugal, for a period of one to 10 years.

PRESIDENCY of the COUNCIL of MINISTERS 165 2-the publication referred to in point (c)) of the preceding paragraph is carried out in full or extract, at the expense of the infringer, in a place suitable for the fulfilment of the purposes of protection of customers and the financial system, including a national, regional or local level, depending on what in this case appears more appropriate.

Article 213 [...] 1-jurisdiction for processing the contraordenações provided for in this general scheme and the implementation of the respective sanctions belongs to the Bank of Portugal. 2 - […]. 3-in the course of the investigation or of the statement, the Bank of Portugal may request law enforcement entities and any other public services or authorities all the cooperation or assistance needed to carry out the purposes of the proceeding. Article 215 [...] 1-When necessary for the investigation or to the statement of the process can be made to any local searches and seizure of any documents and equipment, as well as determine the freezing of any values, regardless of the place or institution in which they are, and should the values be deposited in the account seized PRESIDENCY of the COUNCIL of MINISTERS order of the Banco de Portugal 166 ensuring the payment of the fine and costs in to be sentenced the defendant. 2-The search and seizure of premises are subject to court order. 3-Any persons and entities have an obligation to provide to the Bank of Portugal all explanations and information, as well as to deliver all documents, regardless of the nature of its support, objects and elements, to the extent that they are necessary for the instruction of the processes within its competence. 4-in the case of search in Office of lawyer in Audit Office or doctor's Office, this is enacted and performed, under penalty of nullity, by the examining magistrate, in accordance with specific legislation. 5-with the exception of the situations provided for in article 126, the searches and seizures conducted to entities not subject to the supervision of the Bank of Portugal are subject to authorization by the competent judicial authority. 6-where, in the course of a search, whether seized equipment or media that are likely to contain information that does not respect only to customers, operations, or information of accounting and prudential nature of the institution, are the same as presented to the competent judicial authority that authorizes or orders by order a search of the relevant elements in a computer system , performing a copy or printing these data, in autonomous support, which is next to the process. 7-in the course of inspections the entities subject to the supervision of the Bank of Portugal, are obliged to provide you with the unrestricted access to your systems and files, including data processing, where it is stored at the COUNCIL of MINISTERS PRESIDENCY information 167 on customers or operations, accounting, prudential information or other relevant information on the extent of the jurisdiction of the Banco de Portugal as well as to allow them to be drawn copies and transfers that information.



Article 216 1-precautionary measures When necessary to the effective instruction of the above process, or to protect the financial system or the interests of depositors, investors and other lenders, the Bank of Portugal may: a) Determine to impose conditions on the exercise of the activity by the defendant, namely the special duties of compliance information or of certain technical rules , or determine the requirement of prior authorization request to the Bank of Portugal to practice certain acts; b) Determine the preventive suspension of the exercise of a particular activity, occupation or position by the defendant; c) Determine the preventive closure, in whole or in part, of establishment where illegal activity is exerted. 2-the adoption of any of the measures referred to in paragraph 1 must comply with the principles of necessity, appropriateness and proportionality, being preceded by a hearing of the accused, except if this endangers the PRESIDENCY of the COUNCIL of MINISTERS 168


purpose or effectiveness of the measure. 3-The protective measures adopted pursuant to this article shall be immediately enforceable and only cease with the judicial decision that definitely the revoke, with the beginning of the fulfillment of accessory sanction effect equivalent to the precautionary measure enacted or with its express repeal decision of the Bank of Portugal.

4-When, in accordance with point (b)) of paragraph 1, be given the preventive suspension of the exercise of the activity, occupation or position by the defendant and this will be condemned, in the same process, in accessory sanction consisting of the inhibition of the exercise of the same activities, functions or offices, is discounted in the accessory sanction duration of preventive suspension. 5-Portugal Bank decisions taken under this article always feature, with immediate rise separately and with merely devolutive effect. Article 217 Form of communications and notifications 1-communications are made by registered letter, fax, email or any other means of telecommunication. 2-communications, in accordance with the general scheme of the mere social ordering illegal, contained in Decree-Law No. 433/82 of 27 October, amended by decree-laws Nos. 356/89 of 17 October, 244/95 of 14 September, and 323/2001, of 17 December, and by law No. 109/2001, PRESIDENCY of the COUNCIL of MINISTERS 169 24 December , and other cases expressly provided for in these rules, have to take the form of notification, are made by registered letter with warning of reception addressed to the notifying or, when available, to the respective proponent, or personally, if necessary through the police. 3-the notification of the procedural act formally allocate to defendant engaging in a above, as well as of the decision apply fine, penalty or accessory any injunctive relief, is addressed to the defendant and, when there, to the respective proponent. 4-When, in the situations referred to in the preceding paragraph, the defendant is not found, the notification is made by notice published in the newspapers of the location of its registered office, permanent establishment or last known residence in the country or, if there be no newspaper or the defendant not be thirsty, permanent establishment or residence in the country in one of the newspapers nationwide. 5-whenever the defendant refusing to receive the notification agent certifies that refusal, for the act as a notification. Article 218 Obligations of witnesses and experts 1-for witnesses and experts who do not attend on the day, time and place appointed for the stage of the process, nor justify the absence on the day or within five working days, or, having appeared, refuse to give evidence or unjustifiably to exercise its function, is applied by the Bank of Portugal a penalty until 10 UC. 2-the payment is made within 10 working days of notification under penalty of forced collection.

PRESIDENCY of the COUNCIL of MINISTERS Article 219(3) of Archiving 170 1-as soon as I have been collected sufficient evidence of the infraction has not, of the agent to have practiced any title or be legally unacceptable procedure, are the record filed. 2-the record are also archived if it has not been possible to obtain sufficient evidence above verification or who were its agents. 3-the process can only be reopened if new evidence arise that invalidate the pleas in law in the decision of archiving. 4-the decision is communicated to the archiving agent when post-notification procedural part that you impute to a practice made or, if earlier, when the same has already had some intervention in the process. 5-[Repealed]. 6-[Repealed]. Article 220 [...] 1-Complete the statement, the process is presented to the entity who fits act as decision, accompanied by an opinion on infractions that should be considered proven and the penalties applicable to them. 2-[Repealed.] Article 222.º [...]

PRESIDENCY of the COUNCIL of MINISTERS 171 1-the decision to apply fine contains: a) the identification of the accused; b) the description of the facts complained of; c) an indication of the evidence which established the decision; d) the indication of the legal provisions and penalties applicable; and) the penalty or penalties imposed, with indication of the elements that contributed to their determination; f) sentencing in expense and the indication of the person or persons required to your payment. 2-the notification of the decision contains: a) the warning that the fine and, if applicable, the costs must be paid within 10 working days after the decision becomes final or is made absolute, under penalty to be enforced collection; b) an indication of the terms on which a conviction can be challenged in court and become feasible; c) indicate that, on judicial review, the Court may decide by hearing or, if the accused, the Prosecutor and the Banco de Portugal oppose, upon forwarding; d) the indication that the rule not of reformatio in pejus ban. Article 223 [...] 1-the Board of Directors of the Bank of Portugal may suspend, PRESIDENCY of the COUNCIL of MINISTERS in total 172 or partially, the execution of the penalty, always conclude that are still performed in an appropriate manner and enough prevention purposes. 2-the suspension may be conditional on the fulfilment of certain obligations, in particular those considered necessary for the regularization of illegal situations, the repair of damages or the prevention of dangers.

3-the time of suspension of the penalty is fixed between two and five years, counting his start from the date on which the judgment becomes final or is made absolute. 4 - […]. 5-suspension timing elapses without the defendant have practiced any illicit criminal or mere social ordering for whose processing is competent the Bank of Portugal, and without that you violated the obligations have been imposed, it is considered the penalty which had been suspended, and, conversely, to his execution, when he reveals that the purposes that were at the bottom of the suspension could not through her, be reached. Article 224 [...] 1-In case of conviction, are due by the defendant's expense. 2-Being a number of defendants, the costs are shared by all in equal parts, only being due the value relating to defendants who are convicted.

PRESIDENCY of the COUNCIL of MINISTERS 173 3-expenses are intended to cover the costs incurred in the process, in particular with notifications and communications, recording media, and copies or extracts of the process. 4-reimbursement for costs referred to in the preceding paragraph shall be calculated at the rate of half of 1 UC in the first 100 sheets or fraction of the processed and a tenth of UC for each subsequent set of 25 sheets or fraction of processed.

Article 227.º-[...] 1-When the nature of the infraction, the intensity of guilt and the other circumstances justify it, can the Bank of Portugal, before the defendant to be charged formally in any practice and on the basis of the above facts, notify the accused of the indictment decision applying a reduced sanction, under the terms and conditions given in the following paragraphs. 2-the penalty is a reprimand or a fine whose concrete measure does not exceed five times the minimum limit laid down for the infraction or, going on various infractions, a single fine does not exceed 20 times the highest minimum limit of contraordenações in contest, and may, in any case, be equally determined to adopt a certain behavior, as well as the application of the accessory sanction publication of the decision. 3-the decision referred to in paragraph 1 contains the identification of the accused, the summary description of the facts complained of violated rules, and the rules on penalties applicable and the admonition or the fine or sanction specifically accessory applied or, if appropriate, the PRESIDENCY of the COUNCIL of MINISTERS behavior 174 determined and the deadline for their adoption as well as an indication of elements that contributed to the determination of the sanction. 4-the notification of the decision shall refer to paragraph 7 and be accompanied by a declaration of acceptance of the model decision and, in the case of the penalty be a fine, also payment Guide. 5-Received the notification, the defendant has a period of 10 working days to refer to the Bank of Portugal:


a) in the case of the penalties imposed be a reprimand, written declaration of acceptance; b) in the case of the penalty be a fine, written declaration of acceptance or proof of payment of the same. 6-If the defendant accept the decision or proceed to the payment of the fine imposed and, where appropriate, adopt the behavior given the decision of the Bank of Portugal becomes final, as judgment, the same facts may not be assessed again as above. 7-the decision is void and the above process continues under the common form, and the Banco de Portugal perform the other steps as it considers appropriate to use its and, if applicable, allocate the defendant formally the practice of any made, without which is limited by the contents of that decision, if the defendant: a) Refuse the decision; b) rule on the same within the time limit laid down, unless, having been fined, this has been paid within the period indicated;

PRESIDENCY of the COUNCIL of MINISTERS 175 c) did not adopt the behavior that has been determined; d) Require any supplementary stage. 8-decisions in the process accelerated, are indisputable. 9-in the process accelerated, not the payment of costs.

Article 227.º-B [...] 1-expiry of the judicial review, the decision to condemn the agent for one or more particularly serious infractions is disclosed on the website of the Bank of Portugal, in its entirety or extract containing at least the identity of the individual or collective and information about the type and nature of the infringement even that has been contested in court, and, in this case, express mention thereof made. 2-the Court decision to confirm, alter or revoke the condemnatory decision from the Bank of Portugal or of the District Court must be disclosed in accordance with the preceding paragraph. 3-the disclosure takes place under anonymity: a) the sanction to be imposed on a natural person and, as a result of a prior assessment, demonstrate that the publication of personal data is disproportionate in view of the gravity of the infraction; (b)) the disclosure endangers the stability of the financial markets of COUNCIL of MINISTERS PRESIDENCY 176 or compromise an ongoing criminal investigation; c) disclosure could, as much as it is possible to determine, cause disproportionate damage in view of the gravity of the infraction to credit institutions or individuals concerned. 4-If the circumstances referred to provides that in the preceding paragraph may cease within a reasonable time, the publication of the identity of the individual or collective condemned may be delayed during this period.

5-The information disclosed pursuant to the preceding paragraphs shall remain available on the website of the Bank of Portugal for five years, counted from the time when the judgment becomes final or final, and may not be indexed on the search engines of the Internet. 6-Regardless of traffic, judicial decisions relating to the crime of unlawful activity of reception of deposits and other repayable funds are disclosed by the Bank of Portugal pursuant to the preceding paragraphs. Article 228 [...] 1-[...]. 2 - […]. 3-going on several defendants, the period referred to in the preceding paragraph is counted from the expiry of the time limit to finish in last place. Article 230 ruling PRESIDENCY of the COUNCIL of MINISTERS 177 1-the judge can decide by order when you don't consider necessary the trial and hearing the accused, the Prosecutor and the Banco de Portugal not opposed this form of decision. 2-If there is any trial, hearing the Court decides based on evidence held in the audience, as well as on evidence produced in the administrative phase of the above process.

3-does not apply to the above processes initiated and decided under this scheme the principle of the prohibition of reformatio in pejus.» Article 4 supplement to the general scheme of credit institutions and financial corporations Are added to the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, articles 2A, 4A, 30A to 30-D, 31-, 32-, 33-, 81-115,-to 115-W, 116-116 H- , 121-129,-A,-B, 133-129, 138-the 138-AD, 174-A, 197-A, 200th-A, 214-219,-A, 227.º-C and 228A, read as follows: «Article 2A Definitions 1-for the purposes of this Decree-Law: (a)) ' agency ' means the branch, in the country of a credit institution or finance company with headquarters in Portugal or branch of a credit institution or financial institution with headquarters abroad;

PRESIDENCY of the COUNCIL of MINISTERS 178 b) ' authority responsible for supervision on a consolidated basis», the authority responsible for the exercise of supervision on a consolidated basis of parent credit institutions in the EU parent investment companies in the European Union and of credit institutions or investment firms controlled by a parent financial holding companies in the European Union or by parent mixed financial holding companies in the European Union;

c) ' financial holding company ' shall mean a financial institution whose subsidiaries are either exclusively or mainly credit institutions, investment firms or financial institutions, at least one of such subsidiaries being a credit institution or an investment firm, and which is not a mixed financial holding company; d) ' parent financial holding company in Portugal», a financial holding company based in Portugal who is not a subsidiary of a credit institution or investment firm, or of a financial holding company or mixed financial holding company, respectively authorized or established in Portugal; e) ' parent financial holding company in the European Union, a parent financial holding company headquartered in Portugal or in another Member State of the European Union which is not a subsidiary of a credit institution or investment firm, or of a financial holding company or mixed financial holding company, respectively authorized or established in any Member State of the European Union; f) "mixed financial holding company», a mixed financial holding company within the aceção l) (a) of article 2 of Decree-Law No. 145/2006, of July 31, as amended by Decree-Law No. 18/2013, 6 February;

PRESIDENCY of the COUNCIL of MINISTERS 179 g) "mixed financial holding company in Portugal», a mixed financial holding company headquartered in Portugal which is not a subsidiary of a credit institution or investment firm, or of a financial holding company or mixed financial holding company, respectively authorized or established in Portugal;

h) "mixed financial holding company-mother in the European Union ', a mixed financial holding company-mother based in Portugal or in another Member State of the European Union which is not a subsidiary of a credit institution or investment firm, or of a financial holding company or mixed financial holding company, respectively authorized or established in any Member State of the European Union; I) ' mixed-activity holding company ' shall mean a parent undertaking, other than a financial holding company shall mean a credit institution, an investment firm or a mixed financial holding company, whose subsidiaries include, at least, a credit institution or an investment firm; j) «top» direction, individuals who exercise executive functions in a credit institution or investment firm and that are directly accountable to the Board of Directors for the day-to-day administration of the same; k) "parent company" means the company which carries out control over another undertaking. l) «Investment Companies», companies whose usual activity include the provision of one or more investment services to third parties or the exercise of one or more investment activities and PRESIDENCY of the COUNCIL of MINISTERS 180


they are subject to the requirements laid down in paragraph 2004/39/EC of the European Parliament and of the Council of 21 April 2004, with the exception of credit institutions and of the persons or entities referred to in paragraph 1 of article 2 of the same policy; m) ' host Member State ' or ' host country ' means the Member State of the European Union in which the credit institution, the financial institution or financial companies have a branch or provide services; n) ' home Member State ' or ' country of origin ' means the Member State of the European Union in which the credit institution, the finance company or financial institution has been authorized; the) ' Subsidiary ' means a collective person for which another person, designated by the parent company, is in a relationship of control or on which the Bank of Portugal considers that the parent company exercises a dominant influence, considering that the subsidiary of a subsidiary undertaking shall also a subsidiary of the parent undertaking which both depend; p) ' credit institution ' means a company whose activity is to receive deposits or other repayable funds public and to grant credit for its own account; q) ' parent credit institution in Portugal», a credit institution which is a subsidiary of the credit institution, investment firm or financial institution, or which holds a participation in an entity of this kind, and that is not a subsidiary of another credit institution or investment firm, or of a financial holding company or mixed financial holding company, respectively authorized or established in Portugal;

PRESIDENCY of the COUNCIL of MINISTERS 181 r) ' parent credit institution in the European Union, a parent credit institution with headquarters in Portugal or in another Member State of the European Union which is not a subsidiary of a credit institution or investment firm, or of a financial holding company or mixed financial holding company, respectively authorized or established in any Member State of the European Union; s) ' financial institutions ', with the exception of credit institutions and investment firms: i) The social holding companies subject to the supervision of the Bank of Portugal, including financial holding companies and mixed financial holding companies; II) companies whose main activity consists in the exercise of one or more of the activities listed in points 2 to 12:15 of annex I of Directive No. 2013/36/EU of the European Parliament and of the Council of 26 June 2013; III) payment institutions; IV) The investment funds companies in the furniture aceção the point 6 of article 199.º; t) ' Participation ' means the rights in the capital of other undertakings, whether or not evidenced by stocks or bonds, since creating lasting connections with these and are intended to contribute to the activity of the company, always considered a participation the holding, directly or indirectly, at least 20% of the capital or of the voting rights of a company; u) ' qualifying holding ' means the direct or indirect participation representing at least 10% of the capital or of the PRESIDENCY of the COUNCIL of MINISTERS voting rights 182 of company owned or which for any reason makes it possible to exercise significant influence over the management of the subsidiary company, being applicable, for the purposes of this definition, in articles 13A and 13B; v) ' control ' or ' domain ' relationship, the relationship between a parent undertaking and a subsidiary, or between any individual or collective and a company: i) when any of the following situations: 1) stop the person or conference concerned the majority of voting rights; 2) be a member of society and have the right to appoint or dismiss more than half of the members of the Board of directors or of the supervisory organ; 3) be able to exercise dominant influence over the society, by virtue of a contract or statute of this clause; 4) membership of society and control by itself, by virtue of agreement with other members of this, the majority of the voting rights; 5) be able to exercise, or exercise effectively, dominant influence or control over the company; 6) in the case of collective person, manage the society as if both constitute a single entity; II) In aceção of accounting standards to which the institution is subject under Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002;

PRESIDENCY of the COUNCIL of MINISTERS 183 iii) for the purposes of paragraphs 1, 2 and 4))) (i)): 1) it is considered that voting rights, appointment or dismissal of the participant are the rights of any other dominant dependent society or that this is a group as well as those of any person acting in his own name but for dominant account or from any other of those companies;

2nd) there shall be deducted the rights relating to shares held on behalf of a person other than the dominant one or another of these societies, or relating to shares held in security, provided that in the latter case, such rights are exercised in accordance with the instructions received, or the ownership of the shares is a company which owns chain operation in terms of loans and the voting rights are exercised in the interests of the person providing the security. IV) for the purposes of paragraphs 1 and 4))) (i), be deducted if the total of the voting rights attaching to the share capital of the company is dependent on the voting rights related to participation held by that company, by a subsidiary or by a person acting in his own name but on behalf of any of these companies; w) ' close relationship ' or ' close relationship ' means the relationship between two or more natural or press conferences, which are linked with each other through: ii) participate, directly or indirectly, a percentage not PRESIDENCY of the COUNCIL of MINISTERS 184 below 20% in the share capital or of the voting rights of a company; or iii) Of a controlling relationship; or iv) Of a connection of all lasting the same third through a control relationship;

x) ' ancillary services ' Society, society whose main accessory nature object in relation to the principal activity of one or more credit institutions or financial corporations, in particular the holding or management of real estate or the management of computer services; y) ' about Group Companies», related companies between themselves pursuant to the commercial companies Code characterizes this type of relationship, regardless of the respective head offices are located in Portugal or abroad; z) «financial corporations ' businesses, with the exception of credit institutions whose main activity consists of exercising at least one of the activities permitted to banks, with the exception of receiving deposits or other repayable funds from the public, including investment firms and financial institutions referred to in point (ii) (a) s)); AA) ' Branch ' of a company without legal personality and that perform directly, in whole or in part, operations inherent to the activity of the part;

PRESIDENCY of the COUNCIL of MINISTERS 185 2-for the purposes of the present law are also applicable to the definitions in paragraph 1 of article 4 of the Commission Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013. Article 4-the types of investment companies 1-Are investment firms: the financial brokerage companies); b) brokers; c) asset management companies of estates; d) mediating companies monetary or foreign exchange markets; and) the investment advice; f) asset management companies of multilateral trading systems; g) other companies, corresponding to the definition of investment firms, as such are qualified by law. 2-Notwithstanding the previous paragraph, investment advice companies and fund managers of multilateral trading systems are not subject to the provisions of this general scheme. Article 30-the assessment by credit institutions 1-credit check institutions, first and foremost, that all members of the management and supervisory bodies have adequacy requirements are necessary for the exercise of their functions. 2-the general meeting of each credit institution must adopt a policy of selection and evaluation of the fitness of the members of the PRESIDENCY of the COUNCIL of MINISTERS and supervisory administration of 186 containing at least the identification of those responsible in the credit institution for assessing the fitness evaluation procedures adopted, the requirements of fitness required the rules on prevention, communication and curing of conflicts of interest and the professional training facilities available.


3-people to designate to the management and supervisory bodies should be submitted to the credit institution in accordance with the provisions of paragraph 5, prior to designation, a written declaration with all relevant information needed for the assessment of their suitability, including those which are required in the process of authorisation of the Bank of Portugal. 4-The persons designated shall inform the credit institution any facts which the designation or authorization to alter the contents of the Declaration referred to in the preceding paragraph. 5-When the post should be filled by election, the Declaration referred to in paragraph 3 is submitted to the Chairman of the general meeting of the credit institution, responsible for making it available to shareholders within the framework of preparatory information of the General Assembly and informing shareholders of the adequacy requirements of the elect, and in other cases, the Declaration presented to the Board of Directors. 6-If the credit institution concludes that people evaluate not meet the requirements of fitness required for the performance of the Office, these cannot be appointed or, in the case of a reassessment prompted by PRESIDENCY of the COUNCIL of MINISTERS 187 facts arising should be adopted the necessary measures with a view to curing a lack of requirements detected, the suspension of functions or to the dismissal of the persons concerned except in any of the cases if these people are authorised by the Bank of Portugal under the procedure laid down in the following article. 7-the results of any evaluation or re-evaluation performed by the credit institution must appear on a report that, in the case of people for elective office, must be made available to the General Assembly within the framework of respective preparatory information. 8-the credit institution shall review the adequacy of the persons designated to the management and supervisory bodies where, along the respective mandate, supervening circumstances occur that may determine the non completion of requirements. 9-the evaluation report of the members of the management and supervisory bodies must accompany the application for authorization addressed to the Bank of Portugal or, in the case of re-evaluation, be provided as soon as completed. Article 30-B Evaluation by the Bank of Portugal 1-the fitness of the members of the management and supervisory bodies of credit institutions is the subject of evaluation by the Bank of Portugal, in the process of authorisation of the credit institution. 2-where there is change in the members of the management and supervisory bodies, must be requested by the credit institution to the Bank of Portugal the respective authorization for the exercise of functions. 3-the credit institution, or any interested party may request the Bank PRESIDENCY of the COUNCIL of MINISTERS of Portugal 188 authorization for the exercise of functions prior to the appointment of members of the management and supervisory bodies, getting senile this prior authorisation within 60 days of its issuance if no registration in accordance with article 69 and following. 4-authorization for the exercise of functions of the members of the management and supervisory bodies by the Bank of Portugal is a necessary condition for the start of the exercise of their functions.

5-When the application or the documentation submitted contain shortcomings or irregularities that may be provided by the interested parties, these are notified to the meet in a reasonable period of time, otherwise, not be refused permission. 6-the evaluation of the Bank of Portugal is based on the information provided by the person evaluated and by the credit institution, in enquiries directly promoted and, where appropriate, in a personal interview with the applicant. 7-amendments to the members of the management and supervisory bodies, as well as renewals of mandates, shall be deemed to be authorised if the Bank of Portugal is not a decision within 30 days from the date of receiving the respective request properly instructed, or if you have requested further information, not to say within 30 days after receiving these. 8-without prejudice to the provisions of the preceding paragraph, the definitive registration of designation of Member of the administrative or supervisory bodies with the commercial registry depends on the authorization of the Bank of PRESIDENCY of the COUNCIL of MINISTERS of Portugal 189 functions. 9-the preceding paragraphs shall apply, mutatis mutandis, the managers of the branches and representative offices provided for in article 45 10-for the purposes of this article, the Bank of Portugal may exchange information with the securities market Commission and the Instituto de Seguros de Portugal as the supervisory authorities referred to in article 18-11 when the activity of the credit institution understand the activity of intermediation in financial instruments, consulting the securities market Commission referred to in the preceding paragraph is mandatory. 12-Banco de Portugal may, by regulation, make the exercise of essential functions to its holders permission. Article 30-C refusal and withdrawal of authorisation 1-lack of professional qualification, independence, integrity or availability of the members of the management and supervisory bodies is grounds for refusal of authorization for the exercise of their functions. 2-the refusal of the authorisation on the grounds of lack of some of the requirements mentioned in the preceding paragraph is reported by the Bank of Portugal, to interested parties and to the credit institution. 3-If the mandate of the Member concerned has already started, the refusal of authorization for the exercise of its functions has the effect of termination of that mandate, the lending institution to promote the registration of the PRESIDENCY of the COUNCIL of MINISTERS 190 termination of duties of the Member concerned with the commercial registry. 4-authorization for the exercise of functions can be revoked at any time in the light of supervening circumstances, likely to determine the nonfulfillment of the requirements for the authorization. 5-the authorization is revoked when it was obtained by means of false declarations or other illegal files, without prejudice to the penalties that the case will fit. 6-the revocation of the authorization for the exercise of functions has the effect of immediate cessation of functions of the Member concerned, and the Bank of Portugal to communicate this to the person and to the credit institution, which adopts appropriate measures to ensure that that termination occurs immediately, and should promote the registration of termination of duties of the Member concerned with the commercial registry. 7-the preceding paragraphs shall apply, mutatis mutandis, the managers of the branches and representative offices provided for in article 45 article 30-D 1-Integrity in assessing the suitability must take into account the way in which the person habitually manages the business, personal or professional, or carries on profession, especially in aspects revealing its ability to decide so carefully weighted and , or its tendency to fulfil promptly its obligations or to have behaviors consistent with preserving market confidence, taking into account COUNCIL of MINISTERS PRESIDENCY 191 all circumstances to assess the professional behavior to the functions concerned. 2-the assessment of the reputation is effected on the basis of objective nature, based as much as possible full information about the functions passed to the interested professional, the salient features of their behavior and the context in which decisions were taken. 3-in the assessment referred to in the preceding paragraphs, it should be noted, at least, the following circumstances, depending on their severity: a) evidence that the Member of the administrative or supervisory body not acted transparently or cooperative in its relations with any supervisory authorities or national or international regulation; b) refusal, revocation, cancellation or suspension of registration, license or permit, admission to the exercise of a commercial, business or professional activity, by the supervisory authority, professional or body with similar functions, or dismissal of a charge by public authority; c) the reasons for which a dismissal, termination of a link or the dismissal of a charge that requires a special relationship of trust; d) prohibition on judicial authority, supervisory authority, professional or body with similar functions, act as administrator or Manager of a civil or commercial company or to perform functions; and Inclusion of indications of non-compliance) in the PRESIDENCY of the COUNCIL of MINISTERS 192


responsibilities of credit or any other records of similar nature, on the part of the competent authority for the purpose; f) results obtained, from a financial point of view or for business entities managed by the person concerned or where this has been or is in possession of a qualifying holding, taking into account in particular any recovery procedures, insolvency or liquidation, and how it contributed to the situation that led to such processes; g) Insolvency, regardless of their personal qualifications; h) civil, administrative and criminal cases, as well as any other circumstances, the case may have a significant impact on the financial health of the person concerned. 4-value judgment, the Bank of Portugal shall take into consideration, in the light of preventive purposes of this article, in addition to the facts set out in the preceding paragraph or other similar nature, any condition whose knowledge is legally accessible and that, by the severity, frequency or any other cogent characteristics, may establish a judgment of prognosis on guarantees that the person concerned offers in relation to the sound and prudent management of the institution of credit. 5-for the purposes of the preceding paragraph, shall be taken into account at least the following situations, depending on their severity: a) the insolvency, declared in Portugal or abroad, of the interested person or company for you dominated or has been administrator, Director or Manager, in law or in fact, or member of the COUNCIL of MINISTERS PRESIDENCY 193 of the supervisory organ; b) the prosecution, the pronunciation or the conviction, in Portugal or abroad, for crimes against property, crimes of forgery and falsehood, offences against the achievement of Justice, crimes committed in the exercise of public functions, tax crimes, crimes specifically related to the exercise of financial and insurance companies and activities with the use of means of payment and crimes provided for in the commercial companies code;

c) the prosecution or the conviction, in Portugal or abroad, for infractions of the rules governing the activity of credit institutions, finance companies and management companies, pension funds and the rules governing the securities market and the insurer or reinsurer, including insurance or reinsurance mediation; d) disciplinary rules violations, ethics or professional conduct, within the framework of regulated professional activities; and Facts which have determined the) dismissal, judicial or judicial confirmation of dismissal for cause, of members of the management and supervisory bodies of any commercial company; f) Facts practised in quality of administrator, Director or Manager of any commercial company that have determined the condemnation for damages caused to the company, the shareholders, the creditors of the company or to third parties. 6-the condemnation, yet definitive, for offences of a criminal nature, PRESIDENCY of the COUNCIL of MINISTERS for administrative offences or other 194 does not have the effect required the loss of fitness for the exercise of functions in credit institutions, and their relevance to be considered, among other factors, depending on the nature of the tort committed and their connection to the financial activity , your occasional or repeated and the level of personal involvement of the person concerned, the benefit obtained by this or by people with her directly related, of the injury caused to the institutions, its clients, its creditors or to the financial system and the possible violation of duties relating to the supervision of the Bank of Portugal.

7-the Bank of Portugal, for the purposes of this article, Exchange information with the Instituto de Seguros de Portugal and with the securities market Commission, as well as with the supervisory authorities referred to in article 18. 8-Banco de Portugal database query of sanctions of the European banking authority for the purposes of the assessment of suitability. 9-it is considered verified the suitability of the members of the management and supervisory bodies of credit institutions which are registered with the securities market Commission, the Instituto de Seguros de Portugal or EU supervisory authorities, when such a register is subject to control requirements as to the qualifications, unless facts which lead the Bank of Portugal to decide to the contrary. Article 31-1-independence the independence requirement is to prevent the risk of entry of the PRESIDENCY of the COUNCIL of MINISTERS 195 members of the management and supervisory bodies to the undue influence of other persons or entities, promoting conditions that enable the performance of their duties with impartiality. 2-in the assessment are taken into account all situations likely to affect the independence, in particular the following: (a) the person concerned pursues Positions) or has exercised in the credit institution in question or another credit institution;

b) or similar kinship relationships, as well as professional relationships or economic nature to keep with other members of the Supervisory Board of the credit institution, its parent company or its subsidiaries; c) or similar kinship relationships, as well as professional relationships or economic nature that the person hold with person holding qualifying holdings in the credit institution in its parent company or its subsidiaries. 3-The supervisory organs shall have a majority of independent members, on aceção of paragraph 5 of Article 414 of the code of commercial companies. Article 32-the provisional Suspension of functions 1-in case of justified urgency and to prevent the risk of serious damage to the sound and prudent management of a credit institution or to the stability of the financial system, the Bank of Portugal may determine the PRESIDENCY of the COUNCIL of MINISTERS 196 provisional suspension of the functions of any member of their respective administrative or supervisory bodies. 2-communication to be carried out by the Bank of Portugal to the credit institution and the holder of the Office concerned, following the decision taken pursuant to the preceding paragraph, shall contain a statement to the effect that the provisional suspension of functions is preventive in nature. 3-the provisional suspension ceases its effects: a) by decision of the Bank of Portugal that determine;

b) because of the withdrawal of authorisation for the exercise of functions of the person suspended; c) as a result of the adoption of the measures provided for in paragraph 4 of the preceding article; d) For 30 days of the date of the suspension, without installation procedure with a view to adopting any of the decisions provided for in paragraph 1 (b)) and (c)), from whose home must be notified to the credit institution and the holder of the Office concerned. Article 33-the holders of essential functions 1-credit institutions shall identify the positions whose holders, not belonging to the management bodies or supervision, exercising functions that give them significant influence over the management of the credit institution. 2-the positions referred to in the preceding paragraph comprise, at least, those responsible for the functions of compliance, internal audit, control and risk management of the credit institution, as well as other functions such as PRESIDENCY of the COUNCIL of MINISTERS will be considered by 197 credit institution or defined through regulation by the Bank of Portugal. 3-the adequacy, for the exercise of their functions, of the holders of essential functions of credit institutions is subject to evaluation, applying, mutatis mutandis, the arrangements provided for in articles 30, 30A, 30-D and 31 to 32-. 4-Fit check credit institutions previously filling the requirements of good repute, professional qualification and availability of holders of essential functions and the results of this evaluation must be included in the report referred to in paragraph 7 of Article 30A. 5-Banco de Portugal may, at any time, carry out a new assessment of the adequacy of the holders of essential functions of credit institutions on the basis of circumstances already noted at the time of its designation or other, should understand that such circumstances have been the subject of a manifestly deficient appreciation by the credit institution , or on the basis of any supervening circumstances. 6-in the situation provided for in the preceding paragraph, the Bank of Portugal applies, with any necessary adaptations, the measures provided for in paragraph 4 of article 32 or fixed term credit institutions to take the appropriate measures, and in any event to communicate its decision to the persons concerned and the credit institution. Article 81-1 accounts database-the Bank of Portugal organizes and manages a database on deposit accounts, payments, loans and financial instruments, called database of accounts domiciled in the national territory in PRESIDENCY of the COUNCIL of MINISTERS 198


credit institutions, financial companies or payment institutions, hereinafter referred to as participating entities. 2-account database contains the following information: a) identification of the account and of the participating entity where it is domiciled; b) identification of respective holders and persons authorised to move them, including attorneys, agents or other representatives; (c)) date of opening and closing of the account.

3-The participating entities send to the Bank of Portugal the information referred to in the previous paragraph with the periodicity defined in regulations of the Bank of Portugal. 4-the information contained in the database of accounts can be reported to any judicial authority in criminal proceedings, as well as the Attorney General of the Republic, or who carries out the respective powers by delegation, and to the financial intelligence unit, within the framework of the tasks entrusted to them by the law No. 25/2008 of 5 June as amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, of 6 February. 5-the information from the database of accounts concerning the identification of the entities participating in the accounts are domiciled may also be transmitted, preferably by via Electronics: a) to the tax authority and customs within the respective PRESIDENCY of the COUNCIL of MINISTERS 199 assignments relating to debt collection and even in situations where the same determine, in legal terms , the derogation of banking secrecy; (b)) to the Office of financial management of Social Security, IP, within their respective responsibilities relating to debt collection and provision of socio-economic support; c) To enforcement agents, in accordance with legally prescribed, as well as judicial officials when exercising functions equivalent to those in Executive proceedings for payment of a certain amount. 6-the preceding paragraphs shall not affect the right of the holder to access your personal data, pursuant to law No. 67/98 of 26 October. 7-the information contained in the database of accounts can be used by the Bank of Portugal, as part of its mission. 8-the responsibility for the information contained in the database is the participating entities that report, fitting them in exclusive rectify it or change it, on its own initiative or at the request of its customers, always occurring errors or omissions. 9-the Bank of Portugal you can access the information contained in the tax identification database, managed by the Tax and Customs Authority, for verification of the accuracy of the name and tax identification number of the holders and persons authorised to move bills transmitted by participating entities, in accordance with the protocol concluded between the Bank of Portugal and the Tax and Customs Authority. 10-the Bank of Portugal regulates aspects necessary for the execution of the PRESIDENCY of the COUNCIL of MINISTERS 200 this article, in particular with regard to access to information and centralized reporting of participating entities. Article 115-1 Government systems-the Board of Directors of credit institutions sets, supervises and is responsible for the implementation of systems of Government to ensure effective and prudent management of the same, including the separation of functions within the organisation and the prevention of conflicts of interest.

2-it is the Board of Directors in defining government systems: a) take responsibility for the credit institution, approve and oversee the implementation of the strategic objectives of the strategy and of the internal Government of the same; b) Ensure the integrity of the accounting and financial reporting systems, including the financial and operational control and compliance with the laws and regulations applicable to the credit institution; c) Supervise the disclosure process and the duties of information to the Bank of Portugal; d) monitor and control the activity of the Board. 3-the Board of Directors periodically assess the effectiveness of the systems of the credit institution and take appropriate measures to correct any deficiencies detected. Article 115-B PRESIDENCY of the COUNCIL of MINISTERS 201 Nomination Committee 1-credit institutions, given their size, internal organisation, nature, scope and complexity of its activities, can create a nomination Committee, composed of members of the administrative organ that does not perform executive functions or by members of the supervisory organ. 2-Are powers of the Nomination Committee in respect of management and supervisory bodies: a) to identify and recommend candidates for positions in those organs, assess the composition of the same in terms of knowledge, skills, diversity and experience, prepare a description of the roles and qualifications for the positions in question and assess the time to devote to the exercise of the function; b) set a goal for the representation of men and women in those organs and devise a policy to increase the number of people under-represented gender in order to achieve these objectives; c) Assess, at least annually, the structure, the size, the composition and performance of those organs and make recommendations to them with a view to possible amendments; d) Evaluate, with a minimum annual periodicity, the knowledge, skills and experience of each Member of those organs and bodies together, and communicate them to the respective results;

PRESIDENCY of the COUNCIL of MINISTERS and 202) periodically review the policy of the Board of Directors in matters of selection and appointment of the direction and formulate recommendations to them. 3-in the performance of their duties, the Nomination Committee must ensure that the decision making of the Board is dominated by any one individual or small group of individuals to the detriment of the interests of the credit institution as a whole. 4-the Nomination Committee may use any means which it considers necessary, including the use of external consultants, and use the funds for this purpose. 5-the purpose and policy of the underrepresented gender representation referred to in subparagraph (b)) of paragraph 2 of article 435.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, as well as the respective application, are published in accordance with subparagraph (c)) of paragraph 2 of that article. Article 115-C 1-compensation policy credit institutions define the applicable remuneration policy, including discretionary pension benefits at the level of the group, the parent company and the subsidiaries. 2-the remuneration policy covers the following categories of employees: a) the members of the administrative and supervision; b) the direction of top; c) responsible for risk-taking; d) the operators control functions;

PRESIDENCY of the COUNCIL of MINISTERS and 203) employees whose total remuneration the place in the same pay grade as that laid down for the categories referred to in (a)), b) or (c)), provided that the respective professional activities have a material impact on the risk profile of the credit institution. 3-the remuneration policy of credit institutions must respect, in a way appropriate to its size and internal organisation and the nature, scope and complexity of its activities, the following requirements: a) Promote and be consistent with a sound and prudent risk management and does not encourage risk-taking beyond the level of risk tolerated by the credit institution; b) Be compatible with the business strategy of the credit institution, its objectives, values and long-term interests and include measures to avoid conflicts of interest; c) provide for the independence of employees exercising functions of control and risk management in relation to the structure units that control, assigning them the adequate powers and remuneration on the basis of the achievement of the objectives associated with their functions and independently of the performance of the respective units of structure; d) provide that the remuneration of employees performing functions of risk management and control is enforced directly by the remunerations Committee or, failing that, by the Supervisory Board; and) Distinguish clearly the criteria for the fixing of the PRESIDENCY of the COUNCIL of MINISTERS component 204 fixed remuneration, based mainly on relevant professional experience and organizational responsibility of Developer's functions, and the criteria for the variable component of remuneration, based on sustainable performance and adapted to the risk of the credit institution, as well as in the fulfillment of the tasks of the employee beyond the required. 4-the Board of Directors submits for approval by the General Assembly annually the remuneration policy in respect of employees referred to in point (a)) of paragraph 2.


5-the Board of Directors approves and periodically reviews the remuneration policy in respect of employees referred to in points (b))) of paragraph 2. 6-the implementation of the remuneration policy should be subject to a centralized internal analysis and independent, with a minimum annual periodicity, to be performed by the remuneration Committee, if any, for non-executive members of the Board of directors or by the members of the supervisory organ, having as purpose the verification of the compliance of the remuneration policies and procedures adopted by the competent corporate body. Article 115-D Remuneration on credit institutions benefiting from exceptionally located State intervention When credit institutions benefit from an intervention is exceptionally located in the State, the respective remuneration policy is still subject to the following requirements during the intervention period: PRESIDENCY of the COUNCIL of MINISTERS 205 a) must not be assigned to members of the Board of Directors any variable remuneration component , unless there are objective reasons which justify compelling; b) remuneration should be restructured in a way consistent with a sound risk management and long-term growth of the credit institution, including the setting of limits on the compensation of the members of the Board of Directors;

(c) the variable remuneration component) of the employees of the credit institution shall be limited to a percentage of the profits where this is necessary to maintain a solid capital base and for the timely termination of the intervention is exceptionally located in the State. Article 115-and variable Component of remuneration 1-in the definition of the variable component of the remuneration of employees referred to in paragraph 2 of article 115 C, credit institutions shall ensure that component does not limit the ability of the credit institution to strengthen its capital base and that in his concession are taken into consideration all types of risks , current and future. 2-for the purposes of the preceding paragraph, where remuneration depends on the performance of the developer: a) the definition of the total value of the variable component of remuneration should take place through the combination of the appraisal of the performance of MINISTERS PRESIDENCY 206, which should consider criteria for financial and non-financial nature, and the structure of that unit's performance with the overall results of the credit institution; (b)) the assessment must be carried out in a multi-annual framework, ensuring that the evaluation process is based on the long-term performance and that the payment of his compensation dependent components is distributed over a period that takes account of the underlying economic cycle of the credit institution and its business risks;

c) performance measurement used to calculate the variable component of the remuneration adjustments should be considering the various types of risks, current and future, as well as the cost of capital and the necessary liquidity to the credit institution. 3-with regard to variable remuneration component, at least half of the amount, whether that component is delayed or not, should be a suitable balance between: a) in the case of credit institutions, issuers of shares or, as the form of the institution, equivalent instruments admitted to trading on a regulated market, shares or equivalent instruments issued by the same, and in other cases indexed instruments to the actions or equivalent instruments not denominated in cash; and (b)) When possible, other instruments on aceção articles 52 or 63 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, or other instruments that PRESIDENCY of the COUNCIL of MINISTERS can be fully converted into 207 own funds instruments main 1 level or whose value can be reduced to the extent that reflect adequately the quality of the lending credit institution and are appropriate for the purposes of the component the variable remuneration. 4-the Bank of Portugal may, by regulation, impose restrictions on the types and characteristics of the instruments referred to in the preceding paragraph or to prohibit the use of some of these instruments.



5-Notwithstanding the provisions of paragraph 6, the instruments referred to in paragraph 3 shall be subject to a retention policy by the credit institution, i.e. a suitable period of unavailability by deduction by the credit institution, in order to reconcile the incentives with the long-term interests of the credit institution. 6-the variable component of the remuneration, including the deferred part of that remuneration, should only be an acquired right or be paid if it is sustainable in the light of the financial situation of the credit institution and justified in the light of the performance of same, structure unit concerned and the employee in question. 7-A substantial part of the variable component of the remuneration should be deferred for a minimum of three to five years, and such a component and the duration of the period of deferment be fixed depending on the economic cycle, the nature of the activity of the credit institution, the PRESIDENCY of the COUNCIL of MINISTERS its risks and 208 of the developer's activity in question the following should be observed: at least 40%) of the variable remuneration component is delayed, being this high amount to at least 60% when the variable component of the remuneration is of particularly high value; (b)) the right to payment of the variable component of remuneration subject to deferment should be allocated on a pro rata basis over the period of deferral.

8-without prejudice to the civil and employment law applicable, the variable component of the remuneration shall be amended in accordance with the following paragraphs if the credit institution performance backward or is negative, taking into account both the current remuneration as the reductions in payment of sums whose entitlement to receipt has already formed. 9-the entire variable component of remuneration should be subject to reduction mechanisms ("malus") and rollback ("clawback"), and the credit institution set specific criteria for its application, ensuring that they are, in particular, considered the situations in which the developer: a) Participated or was responsible for an act that resulted in significant losses to the credit institution; b) left to fulfill criteria of appropriateness and suitability. 10-for the purposes of the preceding paragraph: the reduction mechanism) is the system by which the institution will be able PRESIDENCY of the COUNCIL of MINISTERS 209 total or partially reduce the amount of the variable remuneration that has been object of deferral and the payment still is not grandfathered; b) rollback Mechanism, is the scheme through which the institution retains the amount of variable compensation and the payment of which is grandfathered. 11-payments related to the early termination of Developer's functions should reflect the performance verified along the same so as not to encourage inappropriate behaviors.

12-the remuneration Envisioning the new employees compensation for termination of previous functions must take into consideration the long-term interests of the credit institution, including the application of the rules regarding performance, unavailability by deduction by the credit institution, deferral and reversion. 13-cannot be granted guaranteed variable compensation, except when hiring new employees, just in the first year of activity and if there is a solid capital base and strong in the credit institution. 14-the policy on discretionary pension benefits must be compatible with the business strategy, objectives, values and long-term interests of the credit institution, and such benefits take the form of the instruments referred to in paragraph 3, conducting the following: a) If termination of developer activity occurs before retirement, the discretionary benefits of holding PRESIDENCY of the COUNCIL of MINISTERS are 210 held by the credit institution for a period of five years, after which is grandfathered from the developer to the reception of the respective payment by the credit institution. (b)) When the employee reaches the retirement, the discretionary benefits of holding and whose right to respective payment has already been purchased are retained by the credit institution for a period of five years, after which are delivered to the developer.


15-the rules resulting from this article cannot be removed, in particular through the use of any mechanism of risk coverage in order to mitigate the effects of alignment with the risk inherent in the methods of payment or through the payment of the variable component of remuneration through special purpose vehicles or other methods with equivalent effect. Article 115-F ratio between fixed and variable components of remuneration 1-credit institutions shall establish appropriate ratios between the fixed and variable components of total remuneration of employees referred to in paragraph 2 of article 115 C, representing the fixed component a sufficiently high proportion of the total remuneration, in order to allow the implementation of a fully flexible policy on the variable component of the remuneration , including the possibility of non-payment of the same. 2-Notwithstanding the provisions of paragraphs 3 and 4, the variable component of the PRESIDENCY of the COUNCIL of MINISTERS 211 remuneration may not exceed the value of the fixed component of the remuneration for each employee. 3-credit institutions may approve a higher maximum level for the variable component of the total remuneration than those set out in the preceding paragraph, provided that the variable component of remuneration not be exceeding twice the fixed component of the remuneration for each employee. 4-the approval of a higher ratio in accordance with the provisions of the preceding paragraph, follows the steps below: a) the credit institution shall submit to the General Assembly, on the date of the summons, a detailed proposal on the approval of a higher maximum level of the variable component of the remuneration, which indicate the maximum ratio proposed, the fundamentals and the scope of the proposal, including the number of employees affected , its functions and the demonstration that the proposed ratio is compatible with the obligations of the credit institution, in particular for the purpose of maintaining a solid capital base; (b)) the general meeting shall act on the proposal in accordance with the preceding paragraph by a two-thirds majority of the votes cast, provided they are present or represented holders of half of the shares representing the share capital or, if not, by three-fourths majority vote of the shareholders present or represented; c) employees directly affected by maximum levels over PRESIDENCY of the COUNCIL of MINISTERS high variable component 212 of remuneration are not allowed to directly or indirectly exercise any voting rights as shareholders. 5-the credit institution informs the Bank of Portugal, of the proposal to the shareholders and the resolution that has been adopted, and the Bank of Portugal to use the information received regarding the resolution adopted to assess the respective practices in this matter and transmit this information to the European banking authority.

6-in the definition of the ratio between the fixed and variable components of total remuneration, credit institutions may apply a discount rate, calculated in accordance with the guidelines defined by the European banking authority pursuant to the second subparagraph of point (iii)) (g)) of paragraph 1 of article 94 paragraph policy 2013/36/EU of the European Parliament and of the Council June 26, 2013, to a maximum of one quarter of the variable component of the remuneration, provided that the same is paid in deferred instruments for a period of not less than five years. Article 115-G communication and disclosure of remuneration policy 1-Portugal Bank collects the information disclosed in accordance with the criteria set out in article 3(g) disclosure), h) and (i)) of paragraph 1 of article 450.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, and comparatively analyzes trends and compensation practices.

PRESIDENCY of the COUNCIL of MINISTERS 213 2-credit institutions shall notify the Bank of Portugal the number of employees who earn annual revenues equal to or greater than € 1 000 000, by fiscal year, at intervals of remuneration of € 1 000 000, including the professional responsibilities involved, the business area involved and the main components of the fixed remuneration and variable and even contributions to pension discretionary benefits. 3-the Bank of Portugal can set through regulation: a) The rules relating to remuneration policies of the institutions subject to its supervision;

b) Duties of information to the Bank of Portugal concerning the remuneration policy. 4-the Bank of Portugal shall communicate the information referred to in paragraphs 1 and 2 to the European banking authority. Article 115-H 1 Remuneration Committee-credit institutions significant in terms of size, internal organisation and the nature, scope and complexity of the respective activities should create a compensation Committee, composed of members of the administrative organ that does not perform executive functions or by members of the supervisory organ. 2-it is the remuneration Committee to formulate informed and independent judgements about policy and remuneration practices and about the incentives created for the purpose of risk management, capital and liquidity. 3-the remuneration Committee is responsible for the preparation of the PRESIDENCY of the COUNCIL of MINISTERS decisions 214 concerning the remuneration, including decisions with implications in terms of risks and risk management of the credit institution in question, which must be taken by the competent social organ. 4-within the framework of its activity, the remuneration Committee must observe the long-term interests of the shareholders, investors and other interested parties on the credit institution, as well as the public interest.



Article 115-(I) Duty of disclosure on the website 1-credit institutions and financial corporations that maintain a website should make the record the same information that exposes the compliance with the standards laid down in articles 115-to 115-W, as well as that norms have on policy related to the requirements of good repute, professional qualification, availability and independence of the members of the administrative and supervision. 2-the Bank of Portugal regulates the content, level of detail and form of presentation of information to disclose in accordance with the preceding paragraph. Article 115-J self-evaluation Process of internal capital adequacy 1-credit institutions should have strategies and solid, effective and comprehensive processes to assess and maintain on a permanent basis the amounts, types and distribution of internal capital that they consider suitable PRESIDENCY of the COUNCIL of MINISTERS 215 to cover the nature and level of risks to which they are or might be exposed. 2-credit institutions periodically analyze the strategies and processes, in order to ensure their completeness and their proportionality in relation to the nature, scale and complexity of their activities. Article 115-K 1 risk Treatment-it is the Board of Directors of the credit institution: a) Approve and periodically review the strategies and policies related to assumption, management, control and reduction of the risks to which the credit institution is or may be subject, including those resulting from the macro-economic environment in which it operates, given the stage of the economic cycle; b) allocate resources suitable for management of risks regulated in this general scheme and Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; c) Affect enough time to analyse the risk issues; d) Participate actively in the valuation of assets and the use of external credit ratings and internal models related to these risks. 2-for the purposes of the proper exercise of the tasks referred to in the preceding paragraph, credit institutions implement internal communication procedures with the Board of Directors.

PRESIDENCY of the COUNCIL of MINISTERS Article 115-216 L 1-risk Committee credit institutions significant in terms of size, internal organisation and the nature, scope and complexity of their activities must constitute a risk Committee composed of members of the administrative organ that does not perform executive functions and who possess appropriate knowledge, skills and experience in order to fully understand and monitor the risk strategy and risk appetite of the credit institution.


2-credit institutions not covered by the preceding paragraph, the risk Committee's functions can be performed by the Supervisory Board and the respective members possess the knowledge, skills and experience necessary for the exercise of those functions. 3-Notwithstanding the provisions of paragraph 1 of article 115-K, the risk Committee, namely: a) Advise the Board of Directors about the appetite for risk and the General risk strategy, current and future, of the credit institution; b) assist the Board of Directors in overseeing the implementation of the strategy of risk of the credit institution by the direction of top; c) examine whether the conditions of the products and services offered to customers take into account the business model and the strategy of risk of the credit institution and submit to the Board of directors a plan of correction, when that analysis showing that those conditions do not reflect adequately the risks;

PRESIDENCY of the COUNCIL of MINISTERS 217 d) examine whether the incentives set out in the remuneration policy of the credit institution take into account risk, capital, liquidity and expectations as to the results, including the dates of the recipes. 4-the Supervisory Board and the risk Committee, when it has been constituted, have access to information on the situation of the credit institution's risk and, if necessary and appropriate, the risk management function of the credit institution and the external expert advice, fitting them to determine the nature, quantity, the format and frequency of information about the risks that they should receive.

Article 115-M risk management Unit 1-credit institutions shall establish a risk management unit independent of the operational functions and provided with adequate resources to function autonomously, and is responsible for: a) ensure that all material risks of the credit institution are identified, assessed and reported properly; b) Participate in the definition of the strategy of risk of the credit institution; c) Participate in decisions concerning the management of risk materials. 2-responsible for risk management unit carries out functions independently and exclusively, and must belong to the top direction, except where the nature, scale and complexity of the activities of the credit institution warrant it, in this case the function performed by a Senior Executive of the credit institution, safeguarding themselves no PRESIDENCY of the COUNCIL of MINISTERS 218 of conflict of interest. 3-responsible for risk management unit reports directly to the Supervisory Board and cannot be relieved of his duties without prior approval of the same. Article 115-No Credit Risk and counterparty risk 1-approval process, amendment, extension or refinancing of credit is established clearly and is based on solid and defined criteria.

2-credit institutions shall have procedures and internal procedures that permit, without exclusive dependence or of external credit ratings assess the credit risk of exposures to individual borrowers, securities or securitisation positions as well as the credit risk of the portfolio level. 3-If the capital requirements based on a notation by a credit rating agency or in fact not be available a notation for a given exposure, the credit institution is required to consider additional relevant information to assess affectation of internal capital. 4-credit institutions to implement effective systems for the management and the continuous control of the various portfolios with credit risk and exposures, in particular to identify and manage credit problems, perform the necessary value corrections and provide appropriate provisions.

PRESIDENCY of the COUNCIL of MINISTERS 219 5-credit institutions ensure adequate diversification of their credit portfolios, considering the target markets and global credit strategy. Article 115-the residual risk credit institutions implement internal policies and procedures, set out in writing, to ensure control of the residual risk of recognised techniques adopted for the reduction of the credit risk to be less effective than anticipated.

Article 115-P concentration risk, credit institutions shall ensure that the concentration risk arising from exposures to each counterparty individually considered, including central counterparties, sets of interconnected and counterparties counterparties operating in the same economic sector or in the same geographic region, or arising out of the same activity or merchandise, or the application of techniques of credit risk mitigation in particular the risk associated with large indirect risks, is treated and controlled, in particular by means of defined policies and procedures in writing. Article 115-Q 1-securitisation Risk the risks arising from securitisation transactions in relation to which the credit institutions are investors, originators or sponsors, PRESIDENCY of the COUNCIL of MINISTERS, including 220 reputation risks, in particular those that emerge in the context of structures or complex products, are subject to evaluation and treatment in accordance with proper policies and procedures in order to ensure that the economic reality of operations is fully considered in the risk assessment and management decisions. 2-credit institutions Transferors of securitisation operations, which is a clause relating to the early repayment, have liquidity plans that provide for the impact of the upcoming and anticipated repayments within the framework of those operations.

Article 115-R 1-market-risk credit institutions shall establish and implement policies and procedures for the identification, assessment and management of all sources and significant effects of market risks. 2-credit institutions adopt measures safeguarding the risk of lack of liquidity of the instruments when the maturity of a short position before the long position. 3-credit institutions must have adequate internal capital to significant market risks are not subject to a capital requirement. 4-credit institutions must also have a suitable internal capital market risks: a) To calculate the capital requirements for positions at risk, PRESIDENCY of the COUNCIL of MINISTERS in accordance with article 221 326 to 350.º to Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 and to offset their positions in one or more of the equities constituting a stock index with one or more positions in futures contracts on an index of shares or other derivative instrument of this index, cover the risk of losses resulting from the possible difference between the evolution of the value of such futures contract or other derivative instrument and the capital securities that make up that index; b) inverse Positions in contracts of stock index futures whose maturity or composition are not identical;

c) coverage of the risk of loss which exists between the date of the underwriting commitment and the following working day, in the case of the underwriting of debt instruments and equity in which the credit institution apply for calculation of capital requirements, article 345.º of Regulation (EU) no 575/2013, the European Parliament and of the Council June 26, 2013. Article 115-S interest rate risk resulting from activities not included in the trading book credit institutions implement systems to identify, assess and manage the risk resulting from a possible change in interest rates likely to affect activities excluded from its trading portfolio. Article 115-T operational risk PRESIDENCY of the COUNCIL of MINISTERS 222 1-credit institutions to establish and implement policies and procedures to assess and manage operational risk to which they are subject, fitting them to define the respective concept of operational risk, including events of low frequency but high impact. 2-credit institutions implement contingency plans and business continuity to ensure its ability to operate on an ongoing basis and contain losses if a serious disturbance in the respective activity.



Article 115-U 1-liquidity risk credit institutions should have strategies, policies, procedures, and robust systems to identify, measure, manage and monitor the liquidity risk taking by reference a set of time horizons, including the intraday, in order to ensure that they maintain adequate levels of liquidity. 2-for the purposes of the preceding paragraph, the strategies, policies, procedures and systems must: a) Be designed as business areas, coins, branches and entities and include appropriate mechanisms for allocation of costs, benefits and risks relating to liquidity;

PRESIDENCY Of The COUNCIL Of MINISTERS 223


b) be proportionate to the complexity, risk profile, the type of operation and risk tolerance set by the Board of Directors of the credit institution; c) Reflect the importance of the credit institution in each Member State of the European Union exerts its activity. 3-credit institutions communicate to all business areas considered relevant to risk tolerance set. 4-credit institutions shall, taking into account the nature, scale and complexity of their activities, adopt a liquidity risk profile suitable for the proper functioning and solidity of your system.

5-in the definition and implementation of strategies, policies, procedures and systems referred to in the preceding paragraphs credit institutions shall, in particular: a) develop methodologies to identify, measure, manage and monitor their financing, which encompass significant cash flows, current and planned, in the assets, liabilities, off-balance-sheet items, including contingent liabilities, and arising therefrom, and the potential impact of the risk of reputation; b) Discriminate the assets encumbered and the assets free of charge or charges are available at any time, especially in emergency situations, provide the ID of the entity which owns the assets, the country in which the assets are registered or deposited and their availability, controlling the way in which the assets can be deployed in good time;

PRESIDENCY of the COUNCIL of MINISTERS 224 c) Consider the legal, regulatory and operational limitations relating to potential liquidity and asset transfers free of charge or charges between entities within and outside the European economic area; d) Consider different instruments to reduce liquidity risk, including a system of limits and liquidity reservations, that allows to respond to adverse conditions to be identified; and) have a properly diversified funding structure and access to sources of financing, and these mechanisms be reviewed periodically;

f) Consider, at least annually, alternative scenarios on liquidity position and reduce the risk factors and examine the principles underlying the decisions concerning funding, and such alternative scenarios include, in particular, off-balance sheet and contingent liabilities, including those of organizations with specific object of securitisation or other entities with specific object provided for in Commission Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013, for which the credit institution acts as sponsor or pay significant liquidity support; g) Consider the potential impact of alternative scenarios, and idiosyncratic combination of alternative scenarios, taking into account the various time horizons and varying levels of adverse conditions;

PRESIDENCY of the COUNCIL of MINISTERS 225 h) Adjust their strategies, internal policies and limits of liquidity risk, whenever this is necessary on the basis of the analysis of alternative scenarios referred to in points (a) to (f)) and (g)). 6-credit institutions shall draw up contingency plans, which are subject to the approval of the Board of Directors. 7-The liquidity contingency plans should: a) Set appropriate strategies and implementing appropriate measures to deal with possible liquidity deficit, including in respect of branches established in other Member States of the European Union; b) consider the alternative scenarios referred to in points (a) to (g)) and h) of paragraph 5; (c)) be subject to tests at least annually and updated based on the results of the alternative scenarios referred to in points (a) to (g)) and h) of paragraph 5. 8-the policies and procedures referred to in paragraphs 1 and 2 must be adjusted to updates of the liquidity contingency plans that will be carried out in accordance with subparagraph (c)) of the preceding paragraph. 9-credit institutions must take in advance the operational measures required to ensure that the liquidity contingency plans can be immediately executed, in particular: (a)) the ownership of assets of securities immediately eligible for financing by the central bank; b) if necessary, the ownership of assets of the guarantee on the coins of another European Union Member State or third country in which the PRESIDENCY of the COUNCIL of MINISTERS 226 credit institution has exposures; c) if necessary the operating point of view, the ownership of guarantee assets in the territory of a Member State or of a third country whose currency has an exposure. 10-it is the Bank of Portugal under the monitoring of the liquidity risk of credit institutions: a) Check the evolution of liquidity risk profiles, in particular the design and the volume of products, risk management, financing policies and funding concentrations; b) take the necessary measures, if the evolution of liquidity risk profiles, indicated in the preceding paragraph, can generate instability in a credit institution or systemic instability; c) Inform the European banking authority of the measures taken under the preceding paragraph. Article 115-V risk of excessive leverage 1-credit institutions have policies and procedures to identify, manage and control the risk of excessive leverage. 2-The risk of excessive leverage indicators include the leverage ratio determined in accordance with the rules applicable and the mismatch between assets and liabilities. 3-credit institutions treat prudently the risk of excessive leverage, considering their potential increases resulting from reductions in own funds of the credit institution and the ability to respond to adverse situations.

PRESIDENCY of the COUNCIL of MINISTERS Article 115-W 227 comparative analysis of internal methods of calculation of capital requirements 1-credit institutions permitted to use internal methods for the calculation of risk‐weighted exposure amounts or of capital requirements, except for operational risk, communicate annually to the Bank of Portugal the results of calculations of its internal methods for risk positions or positions included in the specified reference portfolios paragraph 8 of article 78 of the Directive n° 2013/36/EU of the European Parliament and of the Council of 26 June 2013, along with an explanation of the methodologies used for those purposes.

2-the results referred to in the preceding paragraph shall also be communicated to the European banking authority, according to a model to be drawn up by the same. 3-in the case of the Banco de Portugal specify reference portfolios other than those mentioned in paragraph 1, shall consult the European banking authority and ensure that credit institutions shall communicate the results of the calculations which alludes that number separately for the wallets of reference specified under paragraph 8 of article 78 of the Directive n° 2013/36/EU of the European Parliament and of the Council of 26 June 2013, and by the Bank of Portugal. 4-on the basis of the information submitted by credit institutions in accordance with paragraph 1, the Bank of Portugal monitors the cast of risk‐weighted exposure amounts or of capital requirements, as the case may be, except for operational risk exposures for the PRESIDENCY of the COUNCIL of MINISTERS 228 or transactions included in the reference portfolio arising from the application of internal methods of each credit institution. 5-the Bank of Portugal annually evaluates the quality of the methods applied by credit institutions, analysing, in particular: a) the methods showing significant differences in capital requirements for the same position at risk; b) methods in which a particularly high diversity or reduced, and also a significant and systematic underestimation of capital requirements.

6-it is up to the Bank of Portugal, in the case of some credit institutions differ significantly from most credit institutions or in lack of uniformity of methods that lead to a wide range of results, investigate the causes of this and, if it is possible to determine with accuracy that the credit institution's method leads to an underestimation of requirements that cannot be attributed to differences in the underlying risks of exposures or positions , adopt corrective measures which are appropriate. 7-in accordance with the preceding paragraph, the Bank of Portugal ensures that corrective measures to adopt maintains the objectives of an internal method:) do not lead to a standardisation or the preferred methods; b) not create wrong incentives; PRESIDENCY of the COUNCIL of MINISTERS or 229 c) don't encourage other institutions to adopt similar methods. Article 116-H participation of infractions to the Bank of Portugal 1-Any person who has knowledge of serious evidence of infringements the duties provided for in this procedure or the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, can make a contribution to the Bank of Portugal. 2-is guaranteed the protection of the personal data of the complainant and the suspect of the practice of the infraction.


3-is also guaranteed confidentiality regarding the identity of the complainant at any time or until such time as this information is required to safeguard the rights of defence of covered by the complaint, within the scope of the investigation to which it gives rise or lawsuits. 4-the shares made under the preceding paragraphs may not, by itself, serve as a foundation to the establishment by the credit institution of any disciplinary procedure, civil or criminal in respect to the author of the contribution, except if they are deliberate and manifestly unfounded. 5-the Bank of Portugal may adopt regulations necessary to ensure the implementation of the guarantees provided for in the preceding paragraphs. Article 116-I PRESIDENCY of the COUNCIL of MINISTERS 230 supervisory activities plan 1-the Bank of Portugal adopts, at least annually, a plan of activities for the supervision of credit institutions, which takes into account the process of analysis and assessment provided for in article 116-and includes: a) an indication of the way in which it intends to carry out its tasks and affect their resources; b) identification of credit institutions shall be subject to enhanced supervision and steps taken to such supervision in accordance with paragraph 3; c) a plan for the inspections at the premises of the credit institutions, including the respective branches and subsidiaries established in other Member States of the European Union. 2-the plan of supervisory activities should cover credit institutions: a) found the respective stress tests referred to in points (a)) and g) of paragraph 1 of article 116-B and article 116-J, or outcomes of the process of analysis and assessment under article 116, which indicate significant risks to its financial soundness or infractions of the provisions contained in this scheme and of Regulation (EU) no 575/ 2013, the European Parliament and of the Council of 26 June 2013; b) Represent systemic risk to the financial system; c) Banco de Portugal considers necessary to include. 3-if considered appropriate under article 116-A, are taken, PRESIDENCY of the COUNCIL of MINISTERS 231 in particular, the following measures: a) increase in the number or the frequency of on-site inspections of credit institution; b) permanent presence of the Banco de Portugal in the credit institution; c) additional reporting or more often by the credit institution; (d) additional or more frequent) review of operational, strategic plans or business of the credit institution; and thematic control Inspections) specific risks of occurrence likely.

4-the adoption of a plan of activities of supervision by the Bank of Portugal shall not prevent the competent authorities of the host Member States proceed, on a case by case basis, to on-the-spot checks and inspections of the activities carried out by branches of credit institutions based in Portugal. Article 116-J stress tests 1-Portugal Bank performs at intervals, and at least annually, stress tests credit institutions, to facilitate the process of analysis and assessment in accordance with article 116-a. 2-the results of the stress tests may be subject to publication.

PRESIDENCY of the COUNCIL of MINISTERS Article 116-232 K continuous Review of the authorization for use of internal methods 1-the Bank of Portugal to see regularly, and at least every three years, compliance by credit institutions of the requirements concerning the methods that require your authorization prior to use for the calculation of capital requirements according to the applicable regulations. 2-for the purposes of the preceding paragraph, the Bank of Portugal takes into account, in particular, the changes in the activity of credit institutions and the application of these methods to new products.



3-whenever significant deficiencies are identified in the risk capture by an internal method of a credit institution, the Bank of Portugal must ensure that these deficiencies are corrected, or take appropriate measures to mitigate its consequences, in particular by imposing multiplication factors or higher capital requirements, or adopting other appropriate and effective measures. 4-the Bank of Portugal analyzes and assesses in particular if a credit institution uses techniques and well developed and up-to-date practices for these methods. 5-If, in relation to an internal market risk model, a large number of excess referred to in the rules indicate that PRESIDENCY of the COUNCIL of MINISTERS 233 the model is not sufficiently accurate, the Bank of Portugal revokes permission for use of the internal model or impose appropriate measures to ensure that the model is improved promptly. 6-where a credit institution has obtained authorisation to apply a method for the calculation of capital requirements which requires the prior authorisation of the Bank of Portugal, in accordance with the applicable regulations, but no longer meet the requirements for the application of this method, the Bank of Portugal shall require the institution to demonstrate that non-compliance has a irrelevant , or alternatively submit a plan to restore compliance with the requirements on time and set a time-limit for completion, and should require improvements of this plan if it is unlikely that it will provide full compliance or if the deadline is not suitable.

7-if it is not likely that the credit institution can restore compliance within an appropriate period of time and, where applicable, the credit institution has demonstrated satisfactorily that the non-compliance has a irrelevant, the permission to use the method is revoked or limited to conforming or areas in which compliance can be achieved within an appropriate period. 8-the Bank of Portugal must take into account the European banking Authority guidance relevant to the review of commitments in accordance with the preceding paragraphs. 9-the Bank of Portugal encourages credit institutions, with a PRESIDENCY of the COUNCIL of MINISTERS 234 consideration their size, internal organisation and the nature, scale and complexity of its activities: the) to develop internal evaluation capabilities of credit risk and to increase the use of the internal ratings-based method for the calculation of capital requirements for credit risk coverage given the absolute relevance of their exposures and the existence of a large number of significant counterparts, and without prejudice to compliance with the criteria laid down in articles 102 to 106 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, concerning the requirements for the trading book;



b) holding specific exposures that are significant in absolute terms and when there is a high number of significant positions in debt instruments from different issuers, to develop internal evaluation capabilities of the risk and increase the use of internal models for the calculation of capital requirements for specific risk of debt instruments in the trading book along with internal models for the calculation of capital requirements for incremental default and migration risks, without prejudice to compliance with the criteria laid down in articles 362.º to 377.º of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June PRESIDENCY of the COUNCIL of MINISTERS 235 of 2013, relating to the use of internal models for the calculation of capital requirements for market risk. 10-the Bank of Portugal, in view of the nature, scale and complexity of the activities of credit institutions, these monitors do not depend on only and to external credit ratings to assess the credit quality of an entity or financial instrument. Article 116-L application of supervisory measures to credit institutions with similar risk profiles 1-If the Bank of Portugal to determine, in accordance with article 116, which credit institutions with similar risk profiles, in particular business models or similar geographical location of their exposures, are or may be exposed to similar risks or pose risks to the financial system You can apply the process of analysis and assessment referred to in the said article to these credit institutions of similar or identical. 2-for the purposes of the preceding paragraph, the Bank of Portugal may impose credit institutions ' requirements that govern your activity in a similar way or similar, namely, the exercise of supervisory powers laid down in articles 116-C, M-116 and 116-n. 3-credit institutions referred to in the preceding paragraphs may be determined in particular, in accordance with the criteria referred to in point j) of paragraph 1 of article 116-b. 4-Portugal bank notifies the European banking authority whenever you apply the preceding paragraphs. Article 116-M PRESIDENCY of the COUNCIL of MINISTERS 236


1 liquidity-specific requirements for the determination of the appropriate level of liquidity requirements based on the analysis and assessment carried out in accordance with this section, the Bank of Portugal will evaluate the need to impose a specific requirement to capture liquidity risks liquidity which the credit institution is or might be exposed, whereas : a) the respective business model; (b)) the provisions, procedures and mechanisms of the credit institution as referred to in article 115-U; c) the results of the analysis and assessment carried out in accordance with article 116; d) systemic risk of liquidity that threatens the integrity of the national financial system and, where applicable, the Member State of the European Union concerned.

2-the Bank of Portugal shall consider the need to apply sanctions or other administrative measures, namely prudential requirements, whose level is in General related to the disparity between the actual position of the credit institution's liquidity and liquidity requirements and stable financing laid down at national level or from the European Union. Article 116-no specific requirements of publication 1-the Bank of Portugal may establish, by regulation, credit institutions: PRESIDENCY of the COUNCIL of MINISTERS to 237) to publish the information referred to in articles 431.º to 455.º of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 at intervals of less than one year by setting the respective deadlines for publication; b) Using Media and specific locations for the publication of information, except through the financial statements. 2-the Bank of Portugal may require that the parent companies to publish annually, fully or by reference to equivalent information, a description of the legal structure and Government of society and of the organisational structure of the group. Article 116-the consistency of reviews, evaluations and supervisory measures the Bank of Portugal shall inform the European banking authority: a) the functioning of the process of analysis and assessment provided for in article 116;

b) the methodology used as the basis of the decisions referred to in articles 116-B, 116-C, 116-J, K-116 and 116-M on the process referred to in the preceding paragraph. Article 121-the branches of third countries 1-branches of credit institutions based in third countries permitted to exercise activity in Portugal are subject to the prudential supervision of the Bank of Portugal by applying them, mutatis mutandis, the conditions of credit institutions authorized in Portugal.

PRESIDENCY of the COUNCIL of MINISTERS 238 2-Portugal Bank may issue regulations to implement the provisions of the preceding paragraph. Article 129-the level of implementation of the process of self-assessment of the adequacy of the internal capital 1-credit institutions to comply with the obligations laid down in article 115-J on individual basis, except those which are subsidiaries in Portugal, parent companies or credit institutions included in the supervision on a consolidated basis. 2-when the Bank of Portugal dismiss the application of capital requirements on a consolidated basis pursuant to article 15 of Commission Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the obligations laid down in article 115-J shall apply on individual basis. 3-parent credit institutions in Portugal comply with the obligations laid down in article 115-J on a consolidated basis.

4-credit institutions controlled by a parent financial holding company or a mixed financial holding company-Mama based in Portugal or in another Member State of the European Union, in the latter case where the competence for supervision on a consolidated basis to be assigned to the Bank of Portugal, comply with the obligations laid down in article 115-J on the basis of the consolidated financial situation of these companies or mixed financial holding companies. 5-When several credit institutions are controlled by a PRESIDENCY of the COUNCIL of MINISTERS 239 parent financial holding company or mixed financial holding partner in Portugal, the preceding paragraph applies only to credit institutions subject to supervision on a consolidated basis, the Bank of Portugal. 6-the provisions of this article shall apply on the basis of both credit institutions which are subsidiaries, if those credit institutions or the respective parent company, where a financial holding company or a mixed financial holding company, have a parent credit institution, an investment firm, a financial institution or a securities funds aceção, in paragraph 6 of article 199.º-A, as a subsidiary in a third country, or hold a participation.



Article 129-B Application with regard to the processing of risks and process and supervisory measures 1-credit institutions to comply with the obligations laid down in chapter II (C) of title VII and paragraphs 9 and 10 of article 116-K, on individual basis, unless waiver by the Bank of Portugal from the application of prudential requirements on individual basis, in accordance with article 7 of the Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013. 2-credit institutions, financial companies and companies PRESIDENCY of the COUNCIL of MINISTERS mixed financial 240 subject to the supervision of the Bank of Portugal which are parent companies or subsidiaries, apply the provisions of the preceding paragraph in a consolidated or sub-consolidated basis, as applicable. 3-the parent companies and subsidiaries referred to in the preceding paragraph shall apply the obligations identified in paragraph 1 of its subsidiaries that are not covered by this regime, ensuring that they provide relevant information on the fulfilment of those obligations, unless the branch are from a third country in which the observance of these obligations constitutes a violation of the law of that country. 4-the obligations laid down in articles 116, 116-116-C and 116-(I) 116-are met in non-consolidated or consolidated basis, in accordance with articles 6 to 88 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013.

5-when the Bank of Portugal renounce the application of capital requirements on a consolidated basis provided for groups of investment firms in article 15 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the obligations laid down in article 116-to apply to investment firms on individual basis. Article 133-the supervision of mixed financial holding companies 1-When a mixed financial holding company be object of PRESIDENCY of the COUNCIL of MINISTERS 241 equivalent under this scheme and of Decree-Law No. 145/2006, of July 31, as amended by Decree-Law No. 18/2013, of 6 February on the supervision of financial conglomerates, particularly in terms of risk-based supervision the Bank of Portugal may, after consulting the other competent authorities responsible for supervision of subsidiaries, apply only the regime of Decree-Law No. 145/2006, of July 31, as amended by Decree-Law No. 18/2013, of 6 February, this mixed financial holding company. 2-When a mixed financial holding company be object of equivalent provisions under this scheme and the Directive No. 2009/138/EC of the European Parliament and of the Council of 25 November 2009, particularly in terms of risk-based supervision, the authority responsible for supervision on a consolidated basis may, in accordance with the supervisor of the group in the insurance sector apply the mixed financial holding company that only the provisions of these conditions of employment concerning the most significant financial sector, on aceção the point i)) (b) of paragraph 2 of article 3 of Decree-Law No. 145/2006, of July 31, as amended by Decree-Law No. 18/2013, of 6 February. 3-the Bank of Portugal shall inform the European banking authority and the European insurance and occupational pensions authority decisions taken under paragraphs 1 and 2. Article 138-the competent authority 1-the Bank of Portugal is the competent authority to apply: a) The requirements for capital reserves specified in sections III to V of this title;

PRESIDENCY Of The COUNCIL Of MINISTERS 242


b) the derogation referred to in paragraph 2 of article 138-C; c) article 458.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013. 2-for the purposes of the preceding paragraph, the Bank of Portugal operates in the national macro-prudential authority, under subparagraph (c)) of article 12 of law No. 5/98 of 31 January, as amended by decree-laws Nos. 118/2001, of 17 April, 50/2004, of March 10, 39/2007, of February 20, 31-A/2012 , February 10, and 142/2013, of October 18, and article 2 of Decree-Law No. 228/2000, of September 23, amended by decree-laws Nos. 211-A/2008, of 3 November, and 143/2013, 18 October. Article 138-B Definitions relating to capital reserves 1-for the purposes of this title the following capital reserves: the ' Conservation Reserve '), the own funds required for a credit institution under article 138-D; b) ' countercyclical Buffer credit institution-specific, the own funds required for a credit institution in accordance with Article 138e; c) ' Reservation for global systemic importance ' or ' G-reserve SII», the own funds required pursuant to paragraphs 1 and 2 of article 138-P; d) ' reservation to other institutions of systemic importance ' or ' O-IBS ' own funds that may be required in the PRESIDENCY of the COUNCIL of MINISTERS 243 under paragraph 1 of article 138-R; and systemic risk reserve) «», the own funds that may be required for a credit institution, pursuant to articles 138-U the 138-y. 2-for the purposes of this title, by: a) ' institution of systemic importance ' or ' O-IBS ' means a credit institution, a parent credit institution in the European Union or in Portugal, a parent financial holding company in the European Union or in Portugal , a mixed financial holding company or parent in Portugal, whose insolvency or financial imbalance can lead to a systemic risk and that as such has been identified pursuant to article 138-Q; b) ' institution of global systemic importance ' or ' G-IBS ' means a parent credit institution in the European Union, a parent financial holding company or a mixed financial holding company-mother in the European Union, whose insolvency or financial imbalance can lead to a systemic risk and as such has been identified pursuant to article 138-N; c) ' total exposure ', the total amount of the exposures calculated under paragraph 3 of article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; d) ' countercyclical ' reserve Percentage, the percentage that credit institutions have to apply to calculate the countercyclical buffer credit institution-specific, determined in accordance with articles 138-(F) 138-J or a PRESIDENCY of the COUNCIL of MINISTERS competent 244 of a third country, as appropriate; and Percentage of countercyclical buffer) ' specific credit institution ', the percentage calculated in accordance with paragraph 1 of article 138-L; f) ' Booking Reference ', the benchmarking of countercyclical reserve calculated in accordance with article 138-F; g) «Requirement» reserves combined, the total amount of own funds 1 level needed for major to fulfill the requirement of conservation reserve, plus, as the case may be, of: i) countercyclical Buffer of credit institution; II) reserve of G-SII; III) O-SII; and iv) reserve for systemic risk.



Article 138-C 1-scope the provisions of this title shall not apply to investment firms which are authorised to provide the services and investment activities of dealing on own account and from underwriting or placement with a guarantee of financial instruments, in aceção, respectively, (c)) and f) of point 1 of article 199.º- , PRESIDENCY of the COUNCIL of MINISTERS in particular 245 investment firms referred to in paragraph 1 (b)) (a) to (d)) of Article 4bis *. 2-Banco de Portugal may exempt, inform, investment firms to which this title applies and which are considered small and medium-sized enterprises within the meaning of Recommendation 2003/361 number/CE, of the European Commission of 6 May 2003 , the requirements set out in articles 138 D and 138e, provided that this exemption does not constitute a threat to the stability of the national financial system. 3-the Bank of Portugal shall communicate the decision to discharge to the European Commission, the European systemic risk Board, the European banking authority and the competent authorities of the Member States concerned. Article 138-D 1-Conservation Reserve credit institutions maintain a conservation reserve consisting of main own funds 1 level of 2.5% of the total amount of the exposures, in individual and consolidated basis, as applicable.

2-the capital buffer required under the preceding paragraph is cumulative with the requirements set out in article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, and the requirements imposed in accordance with subparagraph (a)) of paragraph 2 of article 116-c. 3-failure to comply with the provisions of paragraph 1 credit institutions subject to the restrictions provided for in paragraphs 2 to 4 of article 138-AA.

PRESIDENCY of the COUNCIL of MINISTERS 246 Article 138e countercyclical Buffer 1-credit institutions maintain a countercyclical buffer credit institution-specific, consisting of major capital 1 level, individual and consolidated basis, as applicable, equivalent to the total amount of the exposures of the countercyclical buffer percentage multiplied by the computed pursuant to articles 138-L and 138-m. 2-the capital buffer required under the preceding paragraph is cumulative with requirements laid down in article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 and article 138 D and requirements imposed in accordance with subparagraph (a)) of paragraph 2 of article 116-c. 3-failure to comply with the provisions of paragraph 1 credit institutions subject to the restrictions provided for in paragraphs 2 to 4 of article 138-AA.



Article 138-F 1-Booking Reference the Bank of Portugal estimates, for each quarter, benchmark for reserve which serves as the basis for determining the percentage of countercyclical reservation pursuant to paragraph 1 of the following article. 2-in the determination of benchmark for the Bank of Portugal reserve must observe the following principles: PRESIDENCY of the COUNCIL of MINISTERS the 247) Reflect properly the credit cycle and the risks of excessive credit growth in Portugal; b) Consider the specificities of the national economy; c) be based on the credit ratio deviation in relation to the gross domestic product as to its long-term trend, taking into account, in particular: i) an indicator of growth of credit levels in Portugal and, in particular, an indicator that reflects the changes in the ratio of loans granted in Portugal in relation to gross domestic product; II) the General guidelines issued by the European systemic risk Board relating to the measurement and the calculation of the deviation of the long-term trends of credit ratios in relation to gross domestic product and the calculation of benchmarks.



Article 138-G determining the percentage of countercyclical buffer 1-Portugal Bank assesses and determines the percentage of quarterly countercyclical buffer for Portugal, whereas, for this purpose, the following elements: a) the benchmark for recently calculated in accordance with the previous article;

PRESIDENCY of the COUNCIL of MINISTERS 248 b) the guidelines in force issued by the European systemic risk Board on: i) The principles to guide the designated authorities in the assessment of the percentage of adequate countercyclical buffer, to ensure that they adopt a robust approach for the evaluation of relevant macroeconomic cycles and to promote solid and coherent decision-making in the various Member States of the European Union; II) the variables that indicate the existence of a systemic risk associated with periods of excessive growth of credit in the financial system, in particular the relevant credit ratio in relation to gross domestic product and its deviation from the long-term trend, and on other relevant factors, including the treatment of economic developments in each of the economic sectors in which should be based on decisions on the percentage of adequate countercyclical buffer; III) variables, including qualitative criteria, relating to the indication of maintenance, reduction or cancellation of countercyclical buffer;

c) Any other elements that the Banco de Portugal considers relevant to tackle systemic risk cyclical. 2-the percentage of countercyclical buffer is determined between 0% and 2.5% of the total amount of the exposures in Portugal, at intervals of 0.25%, or multiples of this value. 3-where appropriate, and taking into account the particulars referred to in paragraph 1, the PRESIDENCY of the COUNCIL of MINISTERS 249


of Portugal can determine a percentage of countercyclical buffer exceeding 2.5% of the total amount of the exposures. Article 138-H Period for implementation of countercyclical buffer 1-when the Bank of Portugal to determine, for the first time, the percentage of countercyclical buffer above zero or, subsequently, the increase, the same is applicable for the purpose of calculating the countercyclical buffer specific credit institution 12 months after the date of disclosure provided for in the following article, unless the Bank of Portugal to determine that the same applies to previous date on the basis of exceptional circumstances duly substantiated. 2-In case of reduction of the percentage of countercyclical buffer in place, the Bank of Portugal also reports on the initial period during which it is expected an increase in the percentage of countercyclical buffer. Article 138-I Disclosures concerning the countercyclical buffer 1-Portugal bank discloses quarterly percentage of countercyclical buffer through the respective publication on its Internet Web site, including, inter alia, the following elements: a) the percentage of countercyclical buffer applicable; (b)) the ratio of loans granted in relation to the relevant gross domestic product and its deviation from the long-term trend; c) the benchmark for reserve calculated in accordance with article 138-F; d) the justification for the determination of the percentage of countercyclical buffer;

PRESIDENCY of the COUNCIL of MINISTERS and 250) in the event of an increase in the percentage of countercyclical buffer, the date from which it is applicable to credit institutions for the purpose of calculating the countercyclical buffer of credit institution; f) if the date referred to in the preceding paragraph is less than the period of 12 months after the date of disclosure provided for in this paragraph, the reference to exceptional circumstances which justify the reduction of that period; g) in the event of a reduction in the percentage of countercyclical buffer, the initial period during which it is expected an increase in the percentage of countercyclical buffer, as well as the respective grounds. 2-the Bank of Portugal takes all reasonable measures to coordinate the date of disclosure referred to in the preceding paragraph to the designated authorities of the other Member States of the European Union. 3-the Bank of Portugal shall forward to the European systemic risk Board quarterly decisions relating to the determination of the percentage of countercyclical buffer and the information referred to in paragraph 1.



Article 138-J recognition of countercyclical buffer percentage 1-Banco de Portugal may recognize a percentage of countercyclical buffer exceeds 2.5% of its total exposures, PRESIDENCY of the COUNCIL of MINISTERS 251 established by a designated authority in a Member State of the European Union responsible for determining this percentage or by a competent authority in a third country with the responsibility , for the purpose of calculating the countercyclical buffer credit institution-specific. 2-for the purposes of the preceding paragraph, the percentage of countercyclical buffer exceeds 2.5% of its total exposures is disclosed by the Bank of Portugal on your website, including, inter alia, the following elements: a) the percentage of countercyclical buffer applicable; b) the Member State of the European Union or third country to which it applies; c) in the event of an increase in the percentage of countercyclical buffer, the date from which it applies the new value; d) if the date referred to in the preceding paragraph is less than the period of 12 months after the date of disclosure provided for in this paragraph, the reference to exceptional circumstances which justify the reduction of that period.

Article 138-K decision on percentages of countercyclical buffer of third countries 1-Portugal Bank can determine the percentage of countercyclical buffer applicable to credit institutions for the purpose of calculating the countercyclical buffer specific relation to respective exposures to a third country if the PRESIDENCY of the COUNCIL of MINISTERS authority 252 competent third country : a) determine and disclose a countercyclical buffer percentage applicable to that country; b) Determine and disclose a countercyclical buffer percentage applicable to that country, but the Bank of Portugal has reasonable grounds to believe that the same is not enough to protect properly the credit institutions of the risks of excessive growth of credit in this country, in which case determines and discloses a different percentage. 2-For the purposes of point (b)) of the preceding paragraph, the Bank of Portugal cannot fix a percentage of countercyclical buffer below the level fixed by the competent authority of the third country, except if this reservation percentage exceeds 2.5% of its total exposures credit institutions with positions at risk in that third country. 3-When, pursuant to the preceding paragraphs, the Bank of Portugal to increase the percentage of countercyclical buffer, the same is applicable for the purpose of calculating the countercyclical buffer specific credit institution 12 months after the date of disclosure provided for in the following paragraph, unless the Bank of Portugal to determine that the same applies to previous date on the basis of exceptional circumstances duly substantiated. 4-the Bank of Portugal discloses all the percentages of countercyclical buffer certain to third countries in accordance with this article on your website, including, inter alia, the following elements: a) the percentage of countercyclical buffer and the third country to which the PRESIDENCY of the COUNCIL of MINISTERS 253 applicable; b) the justification for the determination of the percentage of countercyclical buffer; c) where the percentage of countercyclical buffer is determined, for the first time, above zero or subsequently is increased, an indication of the date from which it is applicable to credit institutions for the purpose of calculating the countercyclical buffer of credit institution; d) if the date referred to in the preceding paragraph is less than the period of 12 months after the date of disclosure provided for in this paragraph, the reference to exceptional circumstances which justify the reduction of that period. Article 138-L calculating the percentage of countercyclical buffer credit institution-specific 1-percentage of countercyclical buffer credit institution-specific is the weighted average of the percentages of countercyclical buffer that are applicable in the jurisdictions in which the relevant credit risk positions of the credit institution is situated, or that are applied for the purposes of this article under paragraphs 1 and 2 of the previous article.



2-for the purposes of calculating the weighted average referred to in the preceding paragraph, credit institutions multiply each percentage of countercyclical buffer applicable by the total of your capital requirements for PRESIDENCY of the COUNCIL of MINISTERS 254 credit risk calculated in accordance with the provisions of titles II and IV of part III of the Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013, concerning relevant credit risk positions in the legal system in question, divided by the total of your capital requirements for credit risk relating to all your relevant credit exposures. 3-If a designated authority of a Member State of the European Union or an authority of a third country give me a percentage of countercyclical buffer exceeds 2.5% of its total exposures, is applied to the relevant credit exposures located, respectively, in that Member State of the European Union or in that third country, in particular, for the purposes of calculating on a consolidated basis , the percentage of countercyclical buffer provided for in the following paragraph. 4-for the purposes of the preceding paragraph, if the Bank of Portugal has recognised the countercyclical buffer percentage in accordance with article 138-J, applies this percentage set by the respective designated authority; otherwise, applies a percentage of countercyclical buffer of 2.5% of the total amount of the exposures. 5-The relevant credit exposures include all classes, except those mentioned in (a)) f) of article 112 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, which are subject: a) The capital requirements for credit risk provided for in title II of part III of the regulation; b) if exposure is held in the trading book, the PRESIDENCY of the COUNCIL of MINISTERS 255


capital requirements for specific risk provided for in Chapter 2 of title IV of part three of that regulation or to additional risks of default and migration provided for in Chapter 5 of title IV of part III of the regulation; c) If the exposure is a securitisation, capital requirements provided for in Chapter 5 of title II of part III of the Regulation. 6-credit institutions shall indicate the geographic location of positions in relevant credit risk. Article 138-M date of application of the percentage of countercyclical buffer credit institution-specific 1-in the event of an increase in the percentage of countercyclical buffer determined by the Bank of Portugal or designated authorities of other Member States of the European Union, the same shall apply from the date released by the Bank of Portugal or by those authorities in the respective Internet sites. 2-in the event of an increase, the percentages of countercyclical buffer to third countries shall apply 12 months after the date on which it has been disclosed a change in the percentage of that recently by the authorities of the countries concerned, without prejudice to those authorities require that the amendments apply to credit institutions established in the respective countries in a shorter period.

PRESIDENCY of the COUNCIL of MINISTERS 256 3-for the purposes of the preceding paragraph to change the percentage of countercyclical buffer to a third country is considered as disclosed on the date on which it is published under the authority of the third country concerned, in accordance with the applicable national regulations. 4-If the Bank of Portugal to determine or recognize the percentage of countercyclical buffer to a third country pursuant to article 138 or article 138 K-J, resulting in an increase of the same, this percentage shall apply from the date referred to in point (c)) of paragraph 4 of article 138-K or in subparagraph (c)) of paragraph 2 of article 138-j. 5-in the event of a reduction in the percentage of countercyclical buffer , it is immediately applicable. Article 138-no identification of G-1 SII-it is the Bank of Portugal to identify, on a consolidated basis, the G-IBS. 2-The G-SII are identified according to a methodology based on the following criteria: the Size of the Group); b) group Interconetividade with the financial system; c) substitutability or financial infrastructure services provided by the Group; d) Complexity of the Group; and cross-border Activity of the Group). 3-for the purposes of the preceding paragraph, the criteria are weighted equally and consist of measurable indicators.

PRESIDENCY of the COUNCIL of MINISTERS 257 4-the methodology results in a global quantitative weighting for each entity listed in subparagraph (b)) of paragraph 2 of article 138-B, which is evaluated in order to allow to identify the G-SII and affect them to one of the subcategories referred to in the following article. Article 138-the subcategories of G-SII-SII G-1 are affected five subcategories that comply with the following criteria: a) the lower limit and the boundaries between each two sub-categories are determined by the scores obtained through the methodology of identification; b) scores boundary between adjacent sub-categories are defined clearly and respect the principle that there is constant linear increase of systemic importance among two sub-categories which results in a linear increase of the G-SII, with exception of the highest subcategory. 2-for the purposes of the preceding paragraph, the systemic importance reflects the expected impact on world financial markets in case of hardships of G-IBS. 3-the Bank of Portugal can courts, in the exercise of its supervisory powers, decide:) Reafetar G-IBS to a subcategory;

b) Reafetar an entity listed in subparagraph (b)) of paragraph 2 of article 138-B that has a global score lower than the limit score: PRESIDENCY of the COUNCIL of MINISTERS the lowest sub-category 258, that same subcategory or a superior identifying subcategory-thereby as G-IBS. 4-the decision taken in accordance with point (b)) of the previous number is communicated to the European banking authority. Article 138-P G-reserve 1-Each G SII-SII maintains, on a consolidated basis, a G-SII consisting of main level 1 own funds corresponding to the subcategory that is affects, in accordance with the following: a) on the lowest sub-category is required a reservation of 1% of the total amount of the exposures; (b)) to the fourth subcategory, including capital reserve required every subcategory subsequent increases in intervals of 0.5% of the total amount of the exposures; (c)) in the highest subcategory is required a capital reserve of 3.5% of the total amount of the exposures. 2-G-SII reservation required under the preceding paragraph is cumulative with the requirements set out in article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, article 138 D and 138e, and with the requirements referred to in point (a)) of paragraph 2 of article 116-C.

Article 138-Q PRESIDENCY of the COUNCIL of MINISTERS the ID 259-SII 1-it is the Bank of Portugal to identify, as applicable, on an individual or subconsolidated basis, consolidated, the O-IBS. 2-The the-SII are identified according to an assessment based, at least one of the following criteria: a) dimension; b) Importance to the economy of the European Union or national; c) importance of cross-border activities; d) Interconnectivity of the credit institution or of the group, as applicable, with the financial system. Article 138-R O-SII 1-the Bank of Portugal may require at the-SII to maintain, in a consolidated, sub-consolidated basis or individual, as applicable, an O-SII consisting of main level 1 equity of up to 2% of the total amount of exposure, taking into account the criteria for the identification of the-IBS. 2-whenever you require maintaining a reserve of the-SII, the Bank of Portugal annually revises this requirement and ensures that it does not involve disproportionate adverse effects for the whole or part of the financial system of other Member States, or of the European Union, which constitute or create an obstacle to the functioning of the internal market. 3-O-SII, if required pursuant to paragraph 1, is cumulative with the requirements set out in article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the PRESIDENCY of the COUNCIL of MINISTERS article 260 138-D and Article 138e, and with the requirements referred to in point (a)) of paragraph 2 of article 116 – article 138-S contest booking requirements G-IBS and IBS-1-Without prejudice to the provisions of paragraph 1 of article 138-R and in article 138-X, if a the-SII is subsidiary of a G-SII-SII or whatever a parent credit institution in the European Union, a parent financial holding company or a mixed financial holding company-mother in the European Union subject to a reservation of the-IBS on a consolidated basis capital reserve applicable to O-SII individual branch or a sub-consolidated should be less than 1% of the total amount of the exposures or the percentage of G-SII-SII or group the consolidated level, according to the highest. 2-If a group on a consolidated basis, is subject to a reservation of G-SII and the reserve-SII, applies the higher capital reserve. Article 138-T Notification, review and disclosure relating to G-IBS and IBS-1-Portugal bank notifies the European Commission, the European systemic risk Board and the European banking authority of the business name of G-SII and the-SII and the subcategory that is affects every G-SII pursuant to article 138, and discloses this information on the Internet.

PRESIDENCY of the COUNCIL of MINISTERS 261 2-Portugal bank notifies the European Commission, the European systemic risk Board, the European banking authority and the competent authorities designated by the Member States and interested parties with a notice of one month in relation to the publication of its decision to require the maintenance of a reserve of the-SII, and describe: a) The reasons for the effectiveness and proportionality of the O-SII to mitigate the risk; b) on the basis of the available information, the assessment of the likely impact positive or negative of the SII-internal market; (c)) the percentage that you want to determine for your O-IBS. 3-the Bank of Portugal to review annually the identification of G-SII-SII and, pursuant to articles 138-N and 138-Q and the affectation of G-SII to respective subcategories, pursuant to article 138.4-the Bank of Portugal shall communicate the outcome of the annual review referred to in the preceding paragraph to G-SII-SII and concerned, the European Commission , the European systemic risk Board and the European banking authority and disseminates updated information pursuant to paragraph 1.



Article 138-U Recently for systemic risk COUNCIL of MINISTERS PRESIDENCY 262


1-in order to prevent or reduce systemic risks or non-prudential long term cyclic not covered by the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, constituting a risk of disruption of the financial system susceptible to have serious adverse consequences for the financial system and the national economy, the Bank of Portugal can determine credit institutions subject to its supervision , or to one or more subsets of these institutions, the application of a systemic risk Board composed of main own funds 1 level, on individual basis, consolidated and sub-consolidated basis. 2-When determined by the Bank of Portugal and without prejudice to the provisions of the following articles, the reservation for systemic risk is at least 1% of the exposures to the reservation for systemic risk applies in accordance with the following paragraph. 3-the reservation for systemic risk can be applied to exposures located in Portugal, in third countries and other Member States of the European Union, in the latter case without prejudice to the provisions of paragraph 3 of article 138-V and in paragraphs 1 and 3 of article 138-w. 4-the reservation for systemic risk is determined at intervals of gradual adjustment or 0.5% accelerated and may introduce different requirements for different subsets of credit institutions. 5-To require the maintenance of a reserve for systemic risk, the Bank of Portugal respect the following conditions: a) the reservation to systemic risk may not entail disproportionate adverse effects for the whole or part of the PRESIDENCY of the COUNCIL of MINISTERS financial 263 from other Member States, or of the European Union as a whole, constituting or creating an obstacle to the functioning of the internal market; b) reservation for systemic risk is reviewed at least twice a year. 6-capital reserve required pursuant to paragraph 3 is cumulative with the requirements set out in article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, article 138 D and 138e, and with the requirements referred to in point (a)) of paragraph 2 of article 116-c. 7-failure to comply with the provisions of paragraph 1 credit institutions subject to restrictions provided for in paragraphs 2 to 4 of article 138-AA. 8 the application of the restrictions referred to in the preceding paragraph lead to insufficient improvement of main level 1 own funds of the credit institution, in the light of systemic risk, the Bank of Portugal can take additional measures in terms of their supervisory powers either through contraordenacionais procedures. Article 138-V mere notification and procedure of obtaining of opinion concerning the reserve for systemic risk 1-If the Bank of Portugal to determine a percentage of reservation for systemic risk of up to 3%, shall notify, to the advance of one month in relation to the publication of its decision, the European Commission, the European systemic risk Board, the European banking authority the competent authorities designated by the Member States and interested and the supervisory authorities of the third countries concerned. 2-On the Bank of Portugal notification specifies: PRESIDENCY of the COUNCIL of MINISTERS the 264) systemic risk or macro-prudential in Portugal; b) the reasons why systemic risk and macro-prudential dimension constitutes a threat to the stability of the national financial system that justifies the percentage of reservation for systemic risk; c) the reasons why it considers that the reservation for systemic risk is effective and proportional to mitigate the risk; d) the assessment of the likely positive or negative impact of the reserve for systemic risk on the internal market, on the basis of the information at its disposal; and) The reasons why none of the measures contained in the applicable laws or regulations, with the exception of articles 458.º and 459.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, individually or together, is enough to make macro-prudential or systemic risks identified, taking into account the relative effectiveness of these measures; f) the percentage of the buffer for systemic risk that intends to impose. 3-when the Bank of Portugal to determine the buffer for systemic risk to the 3% limit pursuant to paragraph 1, indicating also the determines based on exposures in other Member States of the European Union, in which case the said reservation is set at the same level for all positions at risk located in the European Union.

4-the Bank of Portugal may, from 1 January 2015, determine a PRESIDENCY of the COUNCIL of MINISTERS 265 reserve percentage for systemic risk of up to 5%, following the procedure laid down in paragraphs 1 and 2, applicable to exposures situated in Portugal and that may also be applicable to exposures in third countries. 5-If the Bank of Portugal to determine, in accordance with the provisions of the preceding paragraph, a percentage of reservation for systemic risk between 3% and 5%, must comply with the following procedure: a) the Bank of Portugal shall notify the Commission and awaits its opinion before adopting the measure in question, and must substantiate if that opinion is negative and the Bank of Portugal chooses not the answer; b) including in the credit institutions to whom the requirement is imposed under this article a subsidiary whose parent company is established in another Member State of the European Union, the Bank of Portugal: i) Notifies the authorities of that Member State, the European Commission and the European systemic risk Board; II) Waits for a period of one month for the recommendation of the European Commission and the European systemic risk Board; III) In case of disagreement on the part of the authorities of that Member State and in the event of a negative opinion of the European Commission and the European systemic risk Board, the Bank of Portugal may refer the matter to the European banking authority and request their assistance in accordance with article 19 of Regulation (EU) no 1093/2010 of the European Parliament and of the Council November 24, 2010; IV) suspends the decision to establish the reservation for the PRESIDENCY of the COUNCIL of MINISTERS 266 exposures until the European banking authority shall decide. Article 138-W authorisation procedure concerning the reserve for systemic risk 1-Without prejudice to paragraphs 4 and 5 of the preceding article, if the Bank of Portugal to determine a percentage of reservation for systemic risk more than 3%, shall notify the European Commission, the European systemic risk Board, the European banking authority, the competent authorities designated by the Member States and interested and the supervisory authorities of the third countries concerned in the latter case if the booking apply to exposures located in these countries. 2-in the notification the Bank of Portugal is in conformity with the provisions of paragraph 2 of article 138-v. 3-Portugal Bank implements the percentage of reservation for systemic risk two months after the notification referred to in paragraph 1, unless the European Commission does not comment or not authorize ended this period. 4-the procedures set out in the preceding paragraphs shall apply from 1 January 2015, whenever the Bank of Portugal to determine a percentage of reservation for systemic risk more than 5%, applicable to exposures located in Portugal, being also applicable to exposures in third countries.

Article 138-X 267 COUNCIL of MINISTERS PRESIDENCY Contest reserves requirements G-IBS and IBS-and for systemic risk 1-applies the higher capital reserve, in the following cases: a) If a group on a consolidated basis, is simultaneously subject to a reservation of G-SII, the a O-IBS and a reserve for systemic risk under this section; b) If a credit institution or a group are subject, on an individual or sub-consolidated basis, both an O-SII pursuant to the previous section and a reserve for systemic risk under this section. 2-Notwithstanding the provisions of paragraph 2 of article 138-S and in the preceding paragraph, if the buffer for systemic risk is applied only to all exposures located in Portugal, to deal with the macro-prudential risk, reservation for systemic risk is cumulative with the reservation of G-SII-SII or applied in accordance with the previous section. 3-if applicable the provisions of paragraph 2 of article 138-S and in paragraphs 1 and 2 and a credit institution belonging to a group identified as G-IBS or group or subgroup identified as O-SII, such cannot imply that such credit institution is, on individual basis, subject to a combined requirement of capital reserves lower than the sum of the conservation reserve , the reserve and the reserve higher countercyclical between the O-SII and the buffer for systemic risk that apply to that entity on individual basis.

4-if applicable the provisions of the preceding paragraph and a credit institution belonging to a group identified as G-IBS or group or sub-group PRESIDENCY of the COUNCIL of MINISTERS 268


identified as O-SII, such cannot imply that this institution is, on individual basis, subject to a combined requirement of capital reserves lower than the sum of the conservation reserve, the countercyclical buffer and the sum of the SII and reservation-systemic risk that apply to that entity on individual basis. Article 138-Y Dissemination of the systemic risk the Bank of Portugal publishes the reserve for systemic risk on your website, including the following information: a) the percentage of the buffer for systemic risk; b) credit institutions to which the relevant reserve for systemic risk; c) the justification for the reservation to systemic risk, unless the same endangers the stability of the financial system; d) the date from which it is applicable to credit institutions the reservation for systemic risk; and) countries where exposures are recognised in reserves for systemic risk.



Article 138-Z recognition of the percentage of a systemic risk COUNCIL of MINISTERS PRESIDENCY 269 1-Banco de Portugal may recognize the percentage of reservation for systemic risk determined by another Member State of the European Union, taking into account the information submitted by the same in its notification, and determine the application of that percentage to the credit institutions in relation to exposures situated in that Member State. 2-if it is made the recognition in accordance with the preceding paragraph, the Bank of Portugal shall notify the European Commission, the European systemic risk Board, the European banking authority and the European Union Member State that has given this percentage to the buffer for systemic risk. 3-the Bank of Portugal may request the European systemic risk Board to issue a recommendation addressed to one or more Member States of the European Union, so that they recognise the percentage of reservation for systemic risk determined in accordance with this section. Article 138-AA restrictions on distributions 1-credit institutions which meet the combined requirement of capital reserve cannot make major capital-related distributions of 1 level leading to a decrease of these own funds to a level where the combined reserve requirement is no longer complied with.

2-credit institutions which do not comply with the requirement of capital reserve combined calculate the maximum amount available under article 138-AC and communicate that value to the Bank of Portugal.

PRESIDENCY of the COUNCIL of MINISTERS-270 3 To calculate the maximum amount available, credit institutions covered by the preceding paragraph shall not conduct any of the following acts: a) equity-related major Distributions of 1 level; b) lodging of variable compensation payment obligation or of discretionary pension benefits or payment of variable remuneration, if the obligation to pay has been taken at a time when the credit institution did not fulfil the requirement combined capital reserve; c) payments for the additional equity instruments 1 level. 4-If a credit institution fails to comply with its requirement of own funds combined, should not make distributions exceeding the maximum amount available, calculated in accordance with article 138 BC, through any act referred to in the preceding paragraph. 5-restrictions on distributions apply only to payments that result in the reduction of major capital 1 level or a reduction of profit, and when the suspension or non-payment does not constitute a situation of non-compliance or foundation of a process under the insolvency law applicable to the credit institution.

6-for the purposes of paragraphs 1 and 3, shall be deemed to be related with distribution main level 1 own funds, in particular the following acts: PRESIDENCY of the COUNCIL of MINISTERS the 271) the payment of dividends in cash; b) the attribution of variable compensation in the form of fully or partially paid shares or other equity instruments referred to in point (a)) of paragraph 1 of article 26 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013; c) the acquisition or repurchase by a credit institution to own shares or other equity instruments referred to in point (a)) of paragraph 1 of article 26 of the regulation; d) the refund of amounts paid in connection with the own funds instruments referred to in point (a)) of paragraph 1 of article 26 of the regulation; and) the distribution of elements referred to in subparagraphs (a) (b))) of paragraph 1 of article 26 of the Regulation. Article 138-AB calculation of distributable maximum amount 1-credit institutions calculating the maximum amount available is accomplished by multiplying the calculated sum in terms of the number following by the factor determined in accordance with paragraph 3, and should that amount be reduced as a result of any of the actions referred to in paragraph 3 of article 138-AA.

2-the amount to multiply for the purposes of the preceding paragraph shall consist of the following elements: a) interim profits not included in the main capital of PRESIDENCY of the COUNCIL of MINISTERS level 1 272 pursuant to paragraph 2 of article 26 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, which have been obtained since the last deliberation about distribution of profits or of any of the acts referred to in paragraph Article 138 3-AA; b) year-end profits not included in main level 1 own funds under paragraph 2 of article 26 of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, which have been obtained since the last deliberation about distribution of profits or of any of the acts referred to in paragraph 3 of article 138-AA; c) Excluding the amounts that could be paid for tax if the elements referred to above were not distributed. 3-the factor referred to in paragraph 1 shall be determined considering the quartile of the combined requirement of capital reserve in which are located the main level 1 own funds held by the credit institution used to meet the capital requirement referred to in subparagraph (c)) of paragraph 1 of article 92 of the Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013, as a percentage of the total amount of exposure, as follows: a) the factor is 0 standing on first, and lower quartile of the combined requirement of own funds; b) factor is 0.2 standing in the second quartile of the combined requirement of own funds; c) is 0.4 factor standing in the third quartile of the PRESIDENCY of the COUNCIL of MINISTERS requirement 273 combined capital reserve; d) factor is 0.6 standing in the room, and higher, quartile combined requirement of capital reserve.

4-the lower and upper bounds of each quartile of reserve requirement is calculated as follows: a)  1 4 n *  combined reserves Requirement lower bound of quartile   Q b) * 4 no reserve Requirement combined upper limit of quartile Q  nQ indicates the number of quartile concerned. Article 138-BC communication to the Bank of Portugal with distribution restrictions 1-credit institutions which do not comply with the requirement combined capital reserve shall communicate to the Bank of Portugal intend to distribute any of its distributable profits or to perform any act referred to in paragraph 3 of article 138-AA, together with the following information : a) the amount of capital held by the credit institution, subdivided as follows: i) main level 1 own funds; II) 1 level additional own funds; III) own funds 2 level; b) the amount of its interim profits and end of the financial year;

PRESIDENCY of the COUNCIL of MINISTERS 274 c) the maximum amount available; d) the amount of the distributable profits which it intends to affect: i) Payments of dividends; II) acquisition of own shares; III) payments for additional own funds instruments 1 level; IV) payment of remuneration or variables of discretionary pension benefits, either by creating new obligations for payment, whether as a result of payment obligations created at a time when the credit institution does not meet the combined requirements of capital reserve. 2-credit institutions maintain procedures to ensure the rigorous calculation of the amount of distributable profits and the maximum amount available, including the demonstration of this rigor at the request of the Bank of Portugal. Article 138-AD capital conservation plan 1-the credit institution that does not comply with the requirement combined reserves presents a capital conservation plan to the Bank of Portugal within five working days from the date of check failure of this requirement. 2-the Bank of Portugal may extend the period referred to in paragraph 1 to a maximum of 10 working days considering the specific situation of the credit institution and in accordance with the scale and complexity of its activities.


PRESIDENCY of the COUNCIL of MINISTERS 275 3-own funds conservation plan includes the following information: a) Estimates of revenue and expenditure and a forecast balance sheet; b) measures to increase the ratios of own funds of the credit institution; c) a program scheduled for the increase of own funds, in order to comply fully with the combined requirement of reservations; d) other information which the Banco de Portugal considers necessary to carry out the assessment required by the next number. 4-the Portugal bench evaluates the conservation plan of own funds and approves it if it considers that its implementation allows, with a reasonable likelihood, to maintain or obtain sufficient own funds for the credit institution to satisfy the combined requirement within appropriate reserves. 5-If the Bank of Portugal do not approve the plan for the maintenance of own funds, should require, alternative or cumulatively, the following measures: a) increase of the own funds of the credit institution to levels and according to a certain timetable; b) imposition of more stringent distribution restrictions than those provided for by the articles of this section, under the powers provided for in article 116 – article 174-the system of financial corporations 1-title II shall apply mutatis mutandis to financial companies based in Portugal with the exception of subparagraph (b)) and of the last PRESIDENCY of the COUNCIL of MINISTERS (d) 276) of paragraph 1 of article 14 , of paragraph 3 of article 16, paragraph 3 of article 22 and paragraph 2 of article 23. 2-[Repealed]. Article 197-the capital reserves of the Bank of Portugal can determine, by regulation, the terms on which financial companies subject to the requirements of title VII. 200th article-1-disobedience Who refuses to abide by the orders or orders of the legitimate Bank of Portugal, issued in the context of their functions, or create in any way, obstacles to their implementation for the penalty incurred the crime of qualified disobedience, if the Bank of Portugal or employee has made the warning that making provision. 2-the same penalty who do not comply, incurs hinder or defraud the implementation of additional sanctions or measures applied in the process of being made.

Article 214-the Secret of Justice 1-the above process is subject to secrecy of justice until it is given administrative decision.

PRESIDENCY of the COUNCIL of MINISTERS-277 2 as soon as it is notified to exercise his right of defence, the defendant can: a) watch the procedural acts taking place and concerning him; b) Consult the record and get copies, extracts and extracts of any parts of them. 3-are applicable to the above process, mutatis mutandis, the exceptions provided for in the code of criminal procedure to the security grading of Justice. Article 219-the charging of violations and 1 defense-Gathered enough evidence above and check who were its agents, the defendant and, where appropriate, his Defender, are notified to, wanting to submit a written defense and offer evidence, and, for this purpose, set by the Bank of Portugal a period between 10:30 working days. 2-the procedural act which impute to defendant an above indicates, the offender, the facts imputed to him, the respective circumstances of time and place, as well as the law that prohibits and punishes.

3-the defendant cannot display more than three witnesses for each infraction, not more than a total of 12, and discriminate against those who just have to testify about their economic situation and their conduct before and after the facts, which cannot exceed the number of two.

PRESIDENCY of the COUNCIL of MINISTERS 278 4-the limits provided for in the preceding paragraph may be exceeded, on request, duly substantiated, the defendant, provided that this appears essential to the discovery of truth, particularly due to the complexity of the process is exceptionally located. 5-the Bank of Portugal must inform the defendant or his advocate, where there is, the additional steps proves that, on its own initiative, take place after the presentation of the defense, giving deadline for wanting, to comment on those representations. Article 227.º-C communication of sanctions the Bank of Portugal inform the European banking authority sanctions applied by the practice of the contraordenações provided for in (a)), b), r) and cc) ll) article 211 and by violating the rules of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June, the situation and the result of the decisions that apply resources. Article 228-the Effect of the resource the resource challenge of judgments given by the Bank of Portugal only has suspensive effect if the applicant provide warranty, in the praxo of 20 days, amounting to half the fine imposed, unless they demonstrate, in the same period, which cannot be provided, in whole or in part, by insufficient means.» Article 5 amendment to the systematic organization of the general scheme of credit institutions and financial corporations 1-change the following legends of the General Regime for credit institutions and PRESIDENCY of the COUNCIL of MINISTERS approved 279 financial corporations, by Decree-Law No. 298/92 of 31 December: a) the title of chapter III of title II shall be replaced by the following : «Fitness of the members of the management and supervisory bodies and the holders of essential functions in credit institutions '; (b)) the title of section I of chapter II of title IV shall be replaced by the following: ' freedom of establishment in Portugal '; (c)) the title of section II of chapter II of title IV shall be replaced by the following: ' third countries '. 2-Are added to Title VII of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, the following chapters: chapter II-A), with the title ' Government ', which comprises articles 115-to 115-I; b) chapter II-B, with the title ' internal ' Capital, which includes article 115-J; c) chapter II-C, with the title «Risk», which comprises articles 115-115 K-w. 3-title VII-is added to the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the heading ' Capital Reserves ', comprising the following sections: section I, with) headed ' General provisions» , comprising articles 138-the 138-C; b) section II, with the heading ' Conservation Reserve ', comprising the article 138-D;

PRESIDENCY of the COUNCIL of MINISTERS 280 c) Section III, headed ' countercyclical ' institutions ' specific Reserve, comprising articles 138 and 138-M; d) section IV, with the heading ' Bookings for systemic importance ', comprising articles 138-N 138-T; e) section V, with the title "' systemic risk ' reservation, comprising articles 138-U the 138 AA; f) section VI, with the heading ' capital conservation measures ', comprising articles 138-AA a 138-AD. Article 6 amendment to the securities code article 363 of the securities code, approved by Decree-Law No. 486/99, of 13 November, shall be replaced by the following:% quot% article 363 [...] 1 - […]. 2-prudential supervision is guided by the following principles: a) [...]; b) […];

c) control of the suitability of the holders of the management, the people who run the activity and of the holders of qualifying holdings, according to the criteria set out in article 30 D of the general scheme of credit institutions and Financial societies, mutatis mutandis;

PRESIDENCY of the COUNCIL of MINISTERS 281 d) control of other requirements for the holders of management bodies and the people who run the activity, in particular the professional qualification and availability, that are required in accordance with the respective legislation. 3 - […]. 4 - […].» Article 7 amendment of law n° 25/June 5, 2008 in articles 54 and 55 of law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013, February 6 , are replaced by the following: ' article 54 [...] The contraordenações provided for in the preceding article are punishable as follows: (a)) when the offense is committed within the framework of the activity of a credit institution or investment firm: i) from € 50 000 to € 5 000 000, if the agent is a collective person; II) With fine of € 25 000 to 5 000 000 euro, if the agent is a natural person; (b)) When the offense is committed within the framework of the activity of another financial entity: PRESIDENCY of the COUNCIL of MINISTERS 282


I) With fine of € 25 000 to 2 500 000 euro, if the agent is a collective person; II) With fine of € 12 500 1 250 000 €, if the agent is a natural person; c) When the offense is committed within the framework of the activity of a non-financial entity, with the exception of those for solicitors and barristers: i) With fine of € 5 000 to 500 000 euro, if the agent is a collective person; II) With fine of € 2 500 to 250 000 €, if the agent is a natural person. Article 55 [...] 1-Together with the fines, can be applied to the person in charge for any of the contraordenações provided for in article 53 the following penalties, depending on the seriousness of the infraction and the agent's fault:) [...]; b) […]; c) publication of the final decision or final.

2-the publication referred to in point (c)) of the preceding paragraph is carried out in full or extract, at the expense of the infringer, on a national, regional or local newspaper, as, in this case appears more appropriate.» Article 8 PRESIDENCY of the COUNCIL of MINISTERS 283 addition to law No. 25/2008 of 5 June are added to law No. 25/2008 of 5 June, amended by Decree-Law No. 317/2009, of 30 October, by law No. 46/2011, June 24, and by decree-laws Nos. 242/2012, 7 November, and 18/2013 , February 6, articles 54-, 55-, 55-57, with the following wording: «article 54-to Increase the limits of fines 1-whenever the amount corresponding to twice the resulting economic benefit of the infringements referred to in article 53 is determinable and above the upper limit of fines applicable, this limit is increased to that amount. 2-in the specific case of collective persons which are credit institutions or investment firms, the maximum levels of fines referred to in point (i))) (a) and (i))) (b) of the preceding article are high for the amount corresponding to 10% of the total annual net turnover of the financial year prior to the date of judgment , where that amount is determinable and exceeding those limits.

3-for the purposes of the preceding paragraph: a) the net annual turnover of previous financial year must include the gross income consists of interest and similar income, the income from shares and other PRESIDENCY of the COUNCIL of MINISTERS 284 variable yield instruments or fixed and commissions received in accordance with article 316 of Regulation (EU) no 575/2013 of the European Parliament and of the Council of 26 June 2013. (b)) For the collective people which are subject to an accounting framework different from what is laid down in article 316 of the same Regulation, the calculation of the net annual turnover is based on the data that best reflect the provisions of that article; c) where the financial entity is a subsidiary, the gross income is the result of consolidated account of the parent company in the preceding financial year. 4-When are about people who are financial institutions conferences and the maximum levels of fines provided for in the preceding article are, at the same time, susceptible of worsening under paragraphs 1 and 2, prevails as the higher ceiling. Article 55-the graduate of the sanction 1-the determination of the extent of the fine and penalties do according to concrete fact, awareness of agent and the demands of prevention, taking into account the individual or collective nature.

2-in determining the unlawfulness of the fact, the agent's fault and prevention requirements, account shall be taken, inter alia, to the following circumstances: a) duration of the infringement;

PRESIDENCY of the COUNCIL of MINISTERS 285 b) degree of participation of the accused in the Commission of the infraction; c) obtaining a benefit, or intention to obtain, for themselves or others; d) existence of damage caused to third for the infraction and its importance when it is determinable; and Potential systemic consequences of infringement); f) occasional or repeated infringement; g) intensity of intent or negligence; h) If the above consist in omission of an act because, the time elapsed since the date on which the Act should have been practiced; I) level of responsibilities of the individual, its functions and its sphere of action in collective person concerned; j) Special duty of the individual not to commit the infringement. 3-in determining the applicable sanction has into account: the economic situation of the accused); (b) the previous conduct of the accused); c) the existence of acts of concealment intended to impede the discovery of infringement; d) agent acts intended to, at its option, repair the damage or prevent the dangers caused by the infringement; and) the level of cooperation of the accused with the competent administrative authority. 4-the fine shall exceed the economic benefit obtained by the defendant or PRESIDENCY of the COUNCIL of MINISTERS 286 person its purpose benefit, to the extent that that is determinable. Article 55-B dissemination of decision 1-in the case of offences committed within the framework of the activity of credit institutions or investment firms within judicial review, the judgment is published on the Internet site of the competent management authority, in its entirety or extract containing at least the identity of the individual or collective and information about the type and nature of the infringement even if you have been required to its judicial review, and, in this case, express mention thereof made. 2-the Court decision to confirm, alter or revoke the judgment of the competent administrative authority or the District Court must be disclosed in accordance with the preceding paragraph. 3-the disclosure takes place under anonymity: a) the sanction to be imposed on a natural person and, as a result of a prior assessment, demonstrate that the publication of personal data would be disproportionate in view of the gravity of the infraction; (b)) the publication could undermine the stability of financial markets or compromise an ongoing criminal investigation;

c) publication can, as far as can be determined, cause disproportionate damage to the institutions or persons concerned. 4-If provides that the circumstances provided for in the preceding paragraph may PRESIDENCY of the COUNCIL of MINISTERS 287 cease within a reasonable time, the publication of the identity of the individual or collective condemned may be delayed during this period. 5-The information disclosed pursuant to the preceding paragraphs shall remain available on the website of the competent administrative authority for five years, counted from the time when the judgment becomes final or final, and cannot be indexed the Internet search engines. Article 57-the communication of sanctions in the case of sanctions imposed in the context of the activity of a credit institution or investment firm, the competent administrative authority shall forward to the European banking authority sanctions, as well as the situation and the result of the decisions that apply resources.» Article 9 amendment to law No. 28/2009, June 19 article 2 of law No. 28/2009, of 19 June, shall be replaced by the following: ' article 2 [...] 1 - […]. 2 - […]. 3 - […]. 4-credit institutions and financial corporations are subject to the rules concerning the remuneration policy established in the general scheme of credit institutions and financial corporations, approved by the PRESIDENCY of the COUNCIL of MINISTERS 288 Decree-Law No. 298/92 of 31 December.» Article 10 amendment to Decree-Law No. 260/94, of October 22 articles 1 and 4 of the Decree-Law No. 260/94, of October 22 are replaced by the following: ' article 1 [...] The investment companies are financial corporations which have the exclusive object the carrying out of financial operations and the provision of associated services defined in this Decree. Article 4 [...] [...]: a) bond issue of any kind, in accordance with the conditions laid down in the law, raising the limits laid down in the code of commercial companies to the Quad of your equity, as well as commercial paper; b) […]; c) financing by credit institutions, particularly in the context of the interbank market, in accordance with the legislation applicable to this market, as well as by financial institutions; d) […].» Article 11 amendment to Decree-Law No. 72/95, of 15 April PRESIDENCY of the COUNCIL of MINISTERS 289


Articles 1 and 5 of Decree-Law No. 72/95, of 15 April, as amended by decree-laws Nos. 285/2001, of 3 November, and 186/2002, of August 21, are replaced by the following: ' article 1 [...] 1-leasing companies are financial corporations which have the main object the exercise of leasing activity. 2 - […]. Article 5 [...] [...]: a) bond issue of any kind, in accordance with the conditions laid down in the law, raising the limits laid down in the code of commercial companies to the Quad of your equity, as well as commercial paper; b) financing by credit institutions, particularly in the context of the interbank market, if the regulations applicable in this market not to ban, as well as by financial institutions; c) […].»

Article 12 amendment to Decree-Law No. 171/95, of 19 July, PRESIDENCY of the COUNCIL of MINISTERS 290 articles 2 to 5 of Decree-Law No. 171/95, of 19 July, amended by Decree-Law No. 186/2002, of August 21, are replaced by the following: ' article 2 [...] 1 - […]. 2-Include in factoring activity complementary actions of collaboration between the entities empowered to exercise the activity of factoring in accordance with the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, and their customers, namely study of credit risks and legal, commercial and accounting support to the good management of claims transacted. Article 3 [...] [...]:) «Factor» or «transferee» means the entities empowered to exercise the activity of factoring in accordance with the general scheme of credit institutions and financial corporations; b) […]; c) […]. Article 4 [...] 1-[...]. 2-the designations ' society of factoring», «financial leasing company» or any other which suggest this activity can only be used by the PRESIDENCY of the COUNCIL of MINISTERS qualified entities to engage in 291 activity of factoring in accordance with the general scheme of credit institutions and financial corporations. Article 5 [...] [...]: a) bond issue of any kind, in accordance with the conditions laid down in the law, raising the limits laid down in the code of commercial companies to the Quad of your equity, as well as commercial paper; b) financing by credit institutions, particularly in the context of the interbank market, if the regulations applicable in this market not to ban, as well as by international financial institutions; c) […].» Article 13 amendment to Decree-Law No. 211/98, of July 16 articles 1 and 8 of Decree-Law No. 211/98, of July 16, as amended by decree-laws Nos. 19/2001 of 30 January, and 309-A/2007, September 7, shall be replaced by the following: ' article 1 [...]

PRESIDENCY of the COUNCIL of MINISTERS 292 garantee societies are financial corporations which have the exclusive object the carrying out of financial operations and the provision of related services provided for in this Decree in favour of micro, small and medium-sized enterprises, or other people, whatever their legal nature, in particular associations and groups of companies as well as individuals in particular, students and researchers conducting the provisions of this law and the relevant provisions of the General Regime for credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December. Article 8 [...] Mutual guarantee societies can only fund your activity with own funds and through the following features: a) financing by credit institutions or financial institutions, domestic or foreign; b) […]; c) bond issue of any kind, in accordance with the conditions laid down in the law, raising the limits laid down in the code of commercial companies to the Quad of your own capital.»



Article 14 amendment to Decree-Law No. 357-B/31 October 2007, PRESIDENCY of the COUNCIL of MINISTERS 293 article 6 of Decree-Law No. 357-B/2007, of October 31, as amended by Decree-Law No. 52/2010 of 26 June, shall be replaced by the following:% quot% article 6 1-[...]. 2-the assessment, by the CMVM, the requirements of good repute and professional qualification shall apply, mutatis mutandis, articles 30 and 31 of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December. 3 - […]. 4 - […].» Article 15 amendment to Decree-Law No. 357-C/2007, of October 31 article 16 of Decree-Law No. 357-C/2007, of October 31, as amended by decree-laws Nos. 52/2010, from June 26, 18/2013, February 6, and 40/2014, of 18 March, shall be replaced by the following: ' article 16 1-[...]. 2-the assessment of suitability requirements, qualifications and availability are applicable mutatis mutandis articles 30-D, 31 and paragraphs 1, 2 and 11 of article 33 of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December. 3 - […]. 4 - […].

PRESIDENCY Of The COUNCIL Of MINISTERS 294 5-[...].» Article 16 amendment to Decree-Law No. 317/2009, of October 30 article 7 of Decree-Law No. 317/2009, of 30 October, amended by Decree-Law No 242/2012, November 7, shall be replaced by the following: ' article 7 [...] 1 - […]: a) […]; b) […]; c) […]; d) finance companies based in Portugal whose object understands the exercise of this activity, in accordance with the legal provisions and regulations; e) [Former subparagraph (d))]; f) [previous article)]; g) [previous subparagraph (f))]; h) [previous subparagraph (g))]; I) [previous paragraph (h))]; j) [previous subparagraph (i))]. 2 - […]. 3 - […].

PRESIDENCY Of The COUNCIL Of MINISTERS 295 4-[...]. 5 - […].» Article 17 amendment to Decree-Law No. 40/2014, March 18 article 9 of the annex to Decree-Law No. 40/2014, of 18 March, shall be replaced by the following: ' article 9 Fitness, professional qualification, independence and availability 1-the assessment of the requirements of good repute, professional qualification, independence and availability of the holders of the administrative and supervisory organs of central counterparties are applicable mutatis mutandis articles 30, 31, 31-A and paragraphs 1, 2 and 11 of article 33 of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December. 2 - […]. 3-for the purposes of this article, it is considered verified the suitability, qualifications, independence and availability of the members of the administrative and supervisory bodies that are registered with the Bank of Portugal or of the Instituto de Seguros de Portugal, when this record is subject to conditions of good repute, unless facts arising at the date of the referenced record leading the SEC to comment.

4-the PORTUGUESE SECURITIES MARKET COMMISSION communicates to the Bank of Portugal or the Instituto de Seguros de Portugal, as applicable, any decision of the PRESIDENCY of the COUNCIL of MINISTERS no 296 verification of suitability, qualifications, independence and availability of the members of the administrative and supervisory bodies that are registered with these supervisory authorities.» Article 18 regulatory Provision 1-Banco de Portugal may subject, by regulation, financial corporations which does not apply the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013 to requirements in the field of prudential supervision and in particular behavioral subjecting them to the provisions of that regulation on the adjustments to understand relevant and the behavioral supervision requirements. 2-until the entry into force of the Act delegate of the European Commission provided for in article 460.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the Bank of Portugal may establish, by regulation, specific rules with regard to liquidity requirements for credit institutions and investment firms. 3-until they are adopted at EU level binding minimum standards for stable funding requirements under paragraph 3 of article 413.º and paragraph 3 of article 510.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the Bank of Portugal may establish, by regulation, specific rules in terms of funding requirements stable for credit institutions and investment firms.

4-In compliance with the provisions of paragraph 3 of article 493.º of Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, PRESIDENCY of the COUNCIL of MINISTERS 297


the field of large exposures, the Bank of Portugal may waive, in whole or in part, by regulation, credit institutions and investment firms from the application of paragraph 1 of Article 395.º the exposures referred to in paragraph 2 of article 400th, both of that regulation. Article 19 Exemptions in accordance with the amendments introduced by this regulation in the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, for a period of one year, credit financial institutions wishing to proceed with the amendment of its typology for credit Finance Corporation benefit from a simplified procedure of mere notification to the Bank of Portugal , the amendment in question. Article 20 the 1-savings banks savings banks whose assets are below € 50 000 000 are not subject to the application of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013, the Bank of Portugal, by regulation, subject to the same provisions of that regulation on the adjustments to understand relevant. 2-the Bank of Portugal may, in accordance with criteria of proportionality, determining the application of title VII of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the wording by the present diploma at savings banks referred to in the preceding paragraph.

3-the savings banks referred to in paragraph 1 are not subject to the provisions of title VII-the PRESIDENCY of the COUNCIL of MINISTERS 298 under the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the wording by the present law. Article 21 applicable to Schemes 1-financial corporations financial corporations referred to in (i)) v)) (b) of paragraph 1 of article 6 of the General rules of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the wording for this law remain subject to the rules of nature applicable tax and credit institutions shall be subject in the same way that credit institutions, to all legal and regulatory provisions relating to credit operations for whose exercise are legally entitled and the provisions of the following legal acts: the) Law No. 58/2012, 9 November; b) Decree-Law No. 349/98, of 11 November; c) Decree-Law No. 279/2000 of 10 November; d) Decree-Law No. 158/2002, of July 2, as amended by Decree-Law No. 125/2009, of 22 May and by laws Nos. 57/November 9, 2012, and 2013, 44/3 July; e) Decree-Law No. 240/2006 of 22 December; f) Decree-Law No. 51/2007, of March 7, amended by decree-laws Nos. 88/2008, of 29 may, 192/2009, of 17 August, and 226/2012, 18 October; g) Decree-Law No. 171/2008, 26 August; h) Decree-Law No. 133/2009, of 2 June, amended by decree-laws Nos. 72-A/2010 of 18 June, and 42/2013, of 28 March; I) Decree-Law No. 144/2009, of 17 June;

PRESIDENCY of the COUNCIL of MINISTERS 299 j) Decree-Law No. 222/2009, of 11 September; k) Decree-Law No. 317/2009, of 30 October, amended by Decree-Law No 242/2012, 7 November; l) Decree-Law No. 3/2010, to January 5; m) Decree-Law No. 227/2012, of 25 October. 2-the Bank of Portugal can determine through regulation, according to criteria of proportionality, the application of the relevant provisions of Regulation (EU) no 575/2013, of Parliament and of the Council of 26 June 2013, the types of financial companies that are not included in the scope of Article 4bis *. Article 22 References references made in other qualifications for specific articles of the general scheme of credit institutions and financial corporations approved by Decree-Law No. 298/92 of 31 December, shall be deemed to be made, mutatis mutandis, to the corresponding provisions or for the new relevant provisions of such arrangements with the wording by the present law. Article 23 transitional provisions 1-Without prejudice to the provisions of paragraph 4, between 1 January and 31 December 2016 2018 the requirements under articles 138 D and 138e of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the amended by this decree-law shall be governed by the provisions laid down in paragraphs 2 to 4.

2-For the period between 1 January and 31 December 2016 2016: PRESIDENCY of the COUNCIL of MINISTERS the 300) the conservation reserve is composed of main level 1 own funds corresponding to 0.625% of the total risk‐weighted exposure amounts, calculated in accordance with paragraph 3 of article 92 of the Regulation (EU) no 575/2013 Parliament and of the Council of 26 June 2013; (b)) the specific institution countercyclical buffer may not exceed 0.625% of the total risk‐weighted exposure amounts, calculated pursuant to pursuant to paragraph 3 of article 92 of the Regulation (EU) no 575/2013, of Parliament and of the Council of 26 June 2013. 3-For the period between 1 January and 31 December 2017 2017: a) the conservation reserve is composed of main level 1 own funds corresponding to 1.25% of the total risk‐weighted exposure amounts, calculated in accordance with paragraph 3 of article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council June 26, 2013; (b)) the specific institution countercyclical buffer may not exceed 1.25% of the total risk‐weighted exposure amounts, calculated in accordance with paragraph 3 of article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013. 4-For the period between 1 January and 31 December 2018 2018: a) the conservation reserve is composed of main level 1 own funds corresponding to 1.875% of the total risk‐weighted exposure amounts, calculated in accordance with paragraph 3 article 92 of Regulation (EU) no 575/2013, the European Parliament and of the Council June 26, 2013;

(b)) the specific institution countercyclical buffer may not exceed 1.875% of the PRESIDENCY of the COUNCIL of MINISTERS 301 total risk‐weighted exposure amounts, calculated in accordance with paragraph 3 of article 92 of the Regulation (EU) no 575/2013, the European Parliament and of the Council of 26 June 2013. 5-the requirement for a conservation plan and restrictions on distributions, referred to in articles 138-AA a 138-AD of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with wording by the present law, shall apply during the transitional period between 1 January and 31 December 2016 2018 If the institutions do not meet the combined requirement of own funds taking into account the limits laid down in paragraphs 2 to 4. 6-the Bank of Portugal may impose a transition period shorter than that laid down in paragraphs 1 to 4 and require the application of conservation and countercyclical buffer from the date of entry into force of this decree-law, informing the European Commission, the European systemic risk Board, the European banking authority and When applicable, the colleges of supervisors. 7 the Bank of Portugal imposes a shorter transition period to the countercyclical buffer, under the preceding paragraph, that period applies only for the purpose of calculating the countercyclical buffer specific institutions authorized in Portugal. 8-If the provisions of paragraph 6 shall apply, mutatis mutandis, in other Member States of the European Union, the Bank of Portugal can apply this shorter transition period, by notifying its decision to the European Commission, the European systemic risk Board, the European banking authority and, where applicable, to colleges of supervisors.

9-compliance with Article 2A shall be required from 1 January 2015, PRESIDENCY of the COUNCIL of MINISTERS 302


except the information listed in (a)) (c)) of the same article concerning the fiscal year of 2014, that must be disclosed by the credit institution or investment firm in the respective Internet Web site on the date of entry into force of this decree-law. Article 24 shall be repealed: the set Standard) paragraph 2 of article 1, article 2, points (e)) j) of article 3, article 5, subparagraphs (a) (c)) j) of paragraph 1 of article 6, article 13, paragraph 1 (b)) and c) of paragraph 2 of article 14, paragraphs 2 and 4 to 6 of article 16 Article 23-A, paragraphs 2, 3, 5 to 7 and 9 of article 69, paragraphs 1 to 3 and 5 to 7 of article 70, paragraph 3 of article 79, article 100, paragraph 4 of article 118, paragraph 2 of article 130, paragraph 5 of article 132, article 174 Articles 175 to 179, 181 to 183, article 197, paragraph 4 of the article 199.º, paragraph 1 of the article 199.º-(B), point (e)) of article 199.º-C, d) (a) of paragraph 2 of article 199.º-L, paragraph 4 of article 205, paragraph c) and d) of paragraph 2 and subparagraph (b)) paragraph 3 , and paragraph 5 of article 206, paragraphs 5 and 6 of article 219, paragraph 2 of article 220 of the Treaty and article 227.º of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December; b) Decree-Law No. 166/95, of 15 July; c) Decree-Law No. 206/95, of 14 August; d) Decree-Law No. 103/2007, of April 3, amended by decree-laws Nos. 45/2010 of 6 may, and 88/2011, 20 July; e) Decree-Law No. 104/2007, of April 3, amended by decree-laws Nos. 45/2010 of 6 may, 140-A/2010, of 30 December, 88/2011, from July 20, and 18/2013, 6 February;

PRESIDENCY of the COUNCIL of MINISTERS 303 f) article 6 of Decree-Law No. 88/2011, July 20. Article 25 Republication is republished, annexed to this decree-law, which is an integral part, the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the current wording. Article 26 entry into force 1-Without prejudice to the following paragraphs, the present law shall enter into force 30 days after its publication. 2-title VII-the General scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the wording by the present law, it shall apply from 1 January 2016, except the section V, which shall apply from the entry into force of this decree-law. 3-internal policy of selection and evaluation of the adequacy of the holders of essential functions is approved by the first general meeting to be held after the date of entry into force of this decree-law, being applicable from the date of its adoption. 4-the provisions of paragraphs 2 to 6 of article 115-F of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the wording by the present law, shall apply to the remuneration granted by performance or services from 1 January 2014, even though it is due under mandate commenced or contracts concluded before the entry into force of this decree-law.

PRESIDENCY of the COUNCIL of MINISTERS 304 5-article 138-P the general scheme of the Credit societies and financial institutions under the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, with the wording by the present law, it shall apply from 1 January 2016 as follows : the 25% reserve) G-SII, in 2016; b) 50% of the G-SII, in 2017; c) 75% of the G-SII, in 2018; and (d)) 100% of G-SII, in 2019. 6-Without prejudice to the application of the provisions on the good repute, professional qualification and independence of the members of the management and supervisory bodies to members of these organs in the renewals of mandates and new designations or appointments occurring after the date of entry into force of this decree-law, the provisions concerning the availability referred to in article 33 of the general scheme of credit institutions and financial corporations approved by Decree-Law No. 298/92 of 31 December, with the amended by this decree-law shall apply to the terms of the management and supervisory bodies under way at the date of entry into force of this decree-law pursuant to paragraphs 1 and 4 to 9 of article 32 of the said regime. 7-the necessary updates of remuneration policies adopted by credit institutions shall be approved by the first general meeting to be held after the date of entry into force of this decree-law.

PRESIDENCY of the COUNCIL of MINISTERS 305 ANNEX (referred to in article 25) Republication of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December

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