Investor complaints with the CMVM rise 10% in one year

“More than 40% of the complaints received related to shares and 34% to investment funds, both increasing year-on-year, having, in the opposite direction, decreased the claims related to debt instruments (to 9%)”, announces the regulator of markets.

The Securities Market Commission (CMVM) received 218 complaints in the first six months of 2020, an increase of 8% compared to the previous semester and of 10% compared to the same period last year, reveals the “Statistical Report on Investor Complaints - 1st semester of 2020 ”.

According to the CMVM, this growth was particularly evident in the second quarter of the year, in which the complaints received increased 75% compared to the previous three months, coinciding with the period of the Covid-19 pandemic in Portugal, marked by greater volatility in the financial markets and uncertainty about economic developments.

“More than 40% of the complaints received related to shares and 34% to investment funds, both increasing year-on-year, having, in the opposite direction, decreased the claims related to debt instruments (to 9%)”, announces the regulator of markets.

The execution of orders was the main reason for complaints, increasing compared to the same period last year, to 41% of the total, namely those related to the subscription / redemption of investment funds and orders in a regulated market. This followed the quality of the information provided to the investor (24%) and the costs associated with the services provided (19%).

According to the report, the complaints received and admitted for treatment at the CMVM targeted 26 entities, of which the majority (18) registered an increase in the number of complaints compared to the previous semester.

Most complaints were filed in the Electronic Complaints Book (62%), almost entirely by individuals, male (70%), resident in Portugal (93%) and mostly in the districts of Lisbon and Porto (52%) , reveals the CMVM.

The entity led by Gabriela Figueiredo Dias, reveals that 2020 complaints were concluded in the first half of 186, a decrease of 20% compared to the previous six months and 79% compared to the same period last year, which includes the completion of most of the complaints processes presented against Banif at the CMVM, following the resolution measure applied to that institution in December 2015.

“This evolution also reflects the impact of measures implemented by the CMVM in the context of the pandemic, such as an increase in the time limit for the complained entities to respond to requests from elements of the CMVM, within the scope of complaints handling”, says the Commission. Despite this effect, “the median time for handling complaints dropped in the first half of this year to 29 days”, he added.

The investor's claim was met in about a quarter of the completed complaints, rising in relation to the same period last year, the regulator assures.

"In 60% of the cases the CMVM concluded the complaint in an unfavorable way to the complainant and in 4% the complained entity did not comply with the complainant's claim, nor did it present elements" that, in the view of the regulatory entity, allowed to counter the ground of the complaint presented.

All the cases in these circumstances were related to complaints filed against Orey Financial, an entity that entered into liquidation in the beginning of the year.

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