Amendments to the draft bill that aims to modify the legal regime applicable to managers of credit institutions

Following the draft bill's public consultation process, the Spanish Minister of the Economy and Competition has decided to introduce a new provision for the purpose of assessing whether or not a convicted banker may be appointed as CEO or as an officer of a financial institution. The draft bill will now require the Bank of Spain (Banco de España) to request a report from the convicting court expressing its opinion on how the conviction affects the banker's required integrity and honour.

Therefore, according to the draft bill, the Bank of Spain should consult judges before deciding whether or not convicted bankers may be appointed as company officers.

In addition, the time period in which that assessment must take place has been reduced. The Bank of Spain now has two months to assess a case and if the result of the assessment process is negative, the financial institution concerned will have six months – no longer a year – to replace the convicted banker.

Draft bill on transparency, access to public information and good governance

The Spanish Government has submitted a draft bill that aims to

  • increase and enhance the transparency of public institutions;
  • recognise and guarantee the right of access to public information; and
  • establish good governance obligations to be met by public officials. 

It also sets out the consequences of a failure to comply. Along with this draft bill, the Spanish Government will also modify the Spanish Criminal Code. It will include a new provision to punish public authorities or officers who wilfully cause economic damage to a public entity either by misrepresenting its accounts, documents, information that reflects the entity's economic position, or representations that makes false information public by any means.

It is envisaged that this reform will have a positive impact with regard to reliance on and trust in Spanish public institutions.

This draft bill is currently in the process of being amended by the Spanish Parliament.