The Executive Council has approved a Decree Law partly amending and updating the Consolidated Text of the Law governing the Catalan Institute of Finance (Institut Català de Finances), which was approved by Legislative Decree 4/2002, of 24 December. The amendments formally makes ICF subject to European regulations on financial institutions and enhances its independence vis-à-vis the Catalonia Regional Government, as required by European regulators.
The Catalonia Regional Government today approved a Decree Law to adapt the legislation governing Institut Català de Finances (ICF) to current European regulations (Directive 2013/36/EU and Regulation 575/2013 - Basel III) and domestic regulations (Law 10/2014, of 26 June, on the regulation, supervision and solvency of credit institutions, and Royal Decree 84/2015), in accordance with the requirements of the regulators in charge of financial institutions.
This Decree Law partly amends and updates the Consolidated Text of the Law governing the Catalan Institute of Finance (Institut Català de Finances), which was approved by Legislative Decree 4/2002, of 24 December.
By means of this amendment, the Regional Government formally makes ICF subject to European regulations on financial institutions and enhances its independence vis-à-vis the Catalonia Regional Government, as required by European regulators, while adapting to the actual and legal status of the institution.
The Decree Law clarifies and specifies the description of ICF's legal regime, making it "subject to the specific regulations governing credit institutions and, therefore, making it subject solely to regulations of a basic nature and to those issued by the regulatory authorities of the European Union that are applicable to it, having regard to its activity and nature". In performing its functions, the legislation specifies that is must be guided by "market principles".
Regarding governance, in line with the regulatory requirements, the amendments enshrine the institution's independence through governing bodies in which a majority of members are independent, and provide for the creation of all the commissions and committees required under the legislation governing credit institutions.
Finally, the Decree also enhances ICF's budgetary independence vis-à-vis the Catalonia Regional Government, "which may establish only its maximum level of annual indebtedness in the respective budgets".
In parallel with the adaptation to legislation, ICF has also concluded the internal process of adaptation to the regulatory requirements in order to bring itself into line with the rest of the financial sector.