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17 August 2018
The General Framework for Credit Institutions and Financial Companies (Decree-Law 298/92) (Banking Law) establishes that the management and supervisory bodies of credit institutions in Portugal are responsible for defining, overseeing and implementing adequate governance to ensure the institutions' effective and prudent management, including the segregation of duties and the prevention of conflicts of interest.
The Banking Law further establishes that management and supervisory bodies must:
Banks should plan and apply remuneration policies correctly and must record the respective procedures and any other items required for the implementation of such policies. Further, pursuant to the Bank of Portugal's Notice 10/2011, a remuneration committee must be established to ensure that financial institutions comply with the required rules and procedures in that regard.
Further, banks must disclose information regarding the remuneration of corporate bodies and employees. This information should be included in corporate governance and internal compliance reports to be sent to the Bank of Portugal or the Single Supervisory Mechanism.
Portugal implemented the EU Capital Requirements Directive (2013/36/EU) (CRD IV) through Decree-Law 157/2014. Although the majority of CRD IV rules were already in force, the national legal framework has been further strengthened with regard to:
For more information please contact Benedita Aires, Maria Carrilho or Salvador Luz at VdA by telephone (+351 21 311 3400) or email (firstname.lastname@example.org, email@example.com or firstname.lastname@example.org). The VdA website can be accessed at www.vda.pt.
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