In the European Union legislation, financial analysis activity is regulated by the following legal instruments:
These two directives establish rules regarding the management of conflicts of interest of financial analysts, imposing, namely, their disclosure.
In this way, these Directives contribute to a greater impartiality and more demanding technical basis for investment recommendations.
The rules of Community law do not, however, impose requirements on the suitability, ethics and professional qualifications of financial analysts and investment advisers. These rules were enshrined by the Portuguese legislator in the Securities Code and by the CMVM in Regulation no. 3/2010.
In the Portuguese legislation, namely that which transposes the above mentioned European Directives, the activity of the financial analyst and investment adviser is regulated in the following legal and regulatory instruments:
Refer, in particular, to the following standards:
Article 12-A: defines what are Investment Recommendations
Article 12-B: defines the content of the Investment Recommendations
Article 12-C: regards Investment Recommendations and Conflicts of Interest
Article 33: includes investment advice among the activities covered by the mediation of conflicts in charge of the CMVM
Article 290 no. 1, al. f): classifies the investment advisory activity as an investment service
Article 291: classifies the Financial Analysis activity as an Investment Assistance Service
Article 293: Classifies investment advisory firms as financial intermediaries in the form of investment firms
Article 294: clarifies what is meant by investment advice
Article 301: subject to the exercise of investment advisory activity to be registered with the CMVM
Article 309-D: lists the duties of the financial intermediary that prepares Investment Recommendations
This CMVM Regulation is of enormous relevance to the professional activity of the financial analyst and investment adviser, insofar as it sets out the duties of conduct and professional qualification of these professionals and establishes principles of action towards the protection of investors and the efficiency of Marketplace.
In particular, consult the following standards:
Article 10: professional qualification of investment consultants