Created in 2011, ESMA (European Supervision Markets Association) is the independent european institution that works in the investor protection regulation and the cooperation among the Securities Commision of the different countries.
The abuses occured in the financial environment has accelerated the process of delivering a stronger legal framework for the investment services in the European Union with the MIFID (Markets in Financial Instruments Directive).
The MIFID is supervised by the ESMA and requires professionalism, independency and transparency to whom operate in the countries member of the EU, giving birth to the EAFI’s (Empresas de Asesoramiento Financiero) in Spain (known as IFA’s in UK or RIA’s in United States).
The Comisión Nacional del Mercado de Valores (CNMV – Securities and Exchange Commision in Spain) is the organism in charge of the supervision and inspection of the spanish financial markets and the activities of the different actors of the sector.
The investor protection is one of it’s aims and also is the responsible for the authorisation and supervision of all the investment services firms, incluiding the EAFIs.
Therefore, since 2011 in Spain, the investment advisory activity it’s a service restricted only for duly authorised companies, as ocurrs in other european countries (France, United Kingdom, Germany, Switzerland or the nordic countries) and in the United States.
An EAFI is an financial advisory firm that requires the authorisation and registry by the Comisión Nacional del Mercado de Valores (CNMV), the spanish Securities and Exchange Commision, who supervises the sector and requires the members a proven and tested knowledge, to guarantee a higher protection for clients. Cross Capital EAFI its registred in CNMV with no. 110, after demostrating technical, human and economic resources.
The EAFI regulation has it’s origin in the EU Directives and in Spain have it’s extension in the Securities Markets Law (Ley del Mercado de Valores), in the Royal Decree 217/2018 and particularly, in the CNMV Circular 10/2008 that rules EAFIs activities.
In addition, an Internal Conduct Policy is applied to EAFIs, must also have a Customer Attention Service and colaborate with Bank of Spain in the prevention of money laundering and terrorism funding matters.
Cross Capital has a fluent comunication with the CNMV, in terms of periodical reporting and it’s audited accounts are public once registered.
In conclusion, all these requirements and obligations makes the EAFI a reliable company, transparent for the client, and supposes an extra guarantee when is hired to deliver investment or corporate advisory.
All the team members of Cross Capital have adopted the ethical code and the professional conduct rules of IEAF (Instituto Español de Analistas Financieros), being the basic principles related to: