The tragedy of dependent regulators

The Government failed the CMVM's proposal to raise supervisory fees, leaving the capital market regulator in a difficult situation, as you can read on page 15 of this edition of the JE.

The Government failed the CMVM's proposal to raise supervisory fees, leaving the capital market regulator in a difficult situation, as you can read on page 15 of this edition of the JE.
We must avoid drawing conclusions before knowing the reasons that explain this decision. After all, we must not forget that many companies are having difficulties. The crisis spares no one, including companies that pay fees to the CMVM. We could even argue that it is fair for the CMVM to share the difficulties that its supervisors are currently experiencing.

However, this situation is not an isolated phenomenon and is part of what has been a mode of action that has contributed to the weakening of the CMVM, the Competition Authority, the ASF and other regulators. I refer to the fact that these regulators need the authorization of Finance in order to move their reserves freely.

Is it possible to have truly independent regulators if they need government approval to use resources that are theirs? True independence implies the ability to say "no" to Governments, which, as we know, are rarely truly neutral in the major operations that are carried out in Portugal. But can a regulator say “no” when justified, while awaiting any authorization from Terreiro do Paço?

The most tragic of all is that the injured are always the same: the Portuguese.

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