On November 15, the CNMV published interpretative guidelines on related party disclosure requirements for listed companies

On November 15, the CNMV published interpretative guidelines on related party disclosure requirements for listed companies
On November 15, the Spanish Securities and Exchange Commission (“CNMV”) published a set of interpretative guidelines on the requirements applicable to the disclosure of related party transactions for listed companies.
These guidelines have a Q&A format and are aimed at clarifying doubts about the application of the new related party disclosure requirements. These requirements have been in force since July 3, as a result of the amendments to the Corporate Enterprises Act (“LSC”) implemented by Act 5/2021, of April 12.
The CNMV considers important that the information disclosed by listed companies be comparable, so shareholders and investors can appropriately assess (i) the securities issuers’ financial situation and performance; and (ii) any risks attached to related party transactions.
The Q&A document discusses criteria regarding: (i) the transitional application of the new regime; (ii) the aggregate of transactions; (iii) parties related to directors; (iv) individual disclosure thresholds; (v) the relevant amounts of related party transactions; (vi) the time of disclosure; (vii) the mandatory audit committee report; and (viii) the rules on dividend distribution and other refunds of contributions. Below we highlight some of the issues discussed by the CNMV:
Finally, the CNMV warns that the Q&A document (i) is non-binding; and (ii) will be updated based on future consultations, the experience of supervisory authorities, regulatory or case law changes, or the stances of EU bodies.
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