The 'twin peaks' model to reform regulators

The 'twin peaks' model to reform regulators

The Bank of Spain would be responsible for the macroprudential supervision and solvency of banks, insurance and operators, while the CNMV to monitor the conduct and marketing of products

  The Agenda for Change includes a change in the institutional architecture of the financial regulation bodies under the 'twin peaks' model, which separates the protection of the financial client from the supervision of the solvency of the entities. And it is that many problems in the commercialization of financial products were due to the fact that those who had to protect the consumer also had to watch over the financial entities.

Therefore, the Government's proposal is to divide in two the financial supervision with a body that monitors the solvency of the banks, insurances and operators - the Bank of Spain - and another that oversees the behavior and the commercialization of the products - the CNMV- . This means rescuing the old plan proposed by the PSOE in 2016, which is already valid in many countries such as the United Kingdom.

In addition, one of the actions to reduce the inequality that includes the 85-page document presented on Friday by the Government is the adoption of measures to ensure the presence of 40% of women on the boards of companies. "In the next few months measures of law will be promoted to address the gender gap in the occupational field," says the text.