The National Securities Market Commission (CNMV) is a body attached to the Secretary of State for the Economy and Business Support of the Ministry of Economy and Competitiveness, founded in 1988, in charge of supervising the securities markets in Spain.
Its objective is to ensure the transparency of these markets, as well as the protection of investors. In the exercise of these powers, it receives a significant volume of information, much of which is contained in its official records and is of a public nature.
Here are some Do’s and dont´s from the CMNV to avoid financial “boot-sales” and future problems if you are a financial investor in Spain:
Nature of the entities
Verify that the entity is authorized and that the company has not been cautioned by the CNMV or other supervisors. If in doubt, consult us.
Remember that the "boot-sellers" are dangerous and try to trick you
If you suspect, ask. Adopt an active attitude. Ask questions about the characteristics of the service and the investment proposed. Get information in writing
Techniques for attracting investors
Be wary of the following frequent alarm signals and techniques:
- Unexpected calls or emails.
- Urgency of investment.
- Personal affinity.
- Entry bonuses.
- Pyramid schemes in which you are asked to attract clients.
- Psychological pressure to make an immediate decision.
- Mention or use of the CNMV logo. Remember that the CNMV would never invite you to make an investment.
Watch out for fraud through the Internet and social networks
Don’t be fooled by the sophistication of some websites. Be alert to unsolicited offers through your social network profiles. Don’t be fooled by the affinity of their social “followers”.
Be wary of high returns without risk. Be wary of complex products. Do not invest in what you do not understand.
Pay attention to commissions and expenses. Make sure that the products they offer you exist
And check the information they give you about the Price of the securities they want to sell.
Investor profile and education
We are all exposed to fraud. Be wary if you are not asked for information: authorized financial intermediaries who offer you a product must assess its suitability (experience and knowledge) and/or appropriateness (experience and knowledge, financial situation and investment objectives) by means of a profile or questionnaire.
If you don’t get your money back, do not continue to contribute. Inform the CNMV in Spain of any incident suspected of fraud. And report it to the police or relevant Spanish Courts.