The president of the National Securities Market Commission (CNMV), Sebastián Albella, has been contrary to establishing general indications to listed companies regarding shareholder remuneration via dividend payment, although he specified that the banking situation is different because there are also reasons for supervisory "prudence".
Albella He appeared in Congress to explain the balance of 2019 in the CNMV and the markets and declared "absolutely respectful and in favor of no indication being given" "We believe that listed companies are mature enough to decide what to do”, He affirmed, making clear in any case the differential situation created in banking where the European central bank It has prevented them from distributing dividends so that they have a piggy bank and lend to the economy.
In his opinion, there is no point in extending banking restrictions to listed companies in general and he referred to the payment of dividends as natural since they are resources that also go, for example, to institutional investors such as pension funds so that they in turn pay benefits to their clients.
During his speech Albella declared himself convinced of the advantages that it represents push companies to list, since the "most securitized countries receive more investment flows" and for companies, it not only expands their financing possibilities, but also "promotes professionalism and rigor in management".
"It is a spur to grow organically and inorganically”And“ it gives prestige ”, to the extent that“ it strengthens the brand at an international level ”, he defended after noting that the capitalization of listed companies in Spain barely represents 53% of GDP compared to 11% in the United Kingdom or 170 % in United States.
Among the advantages, he stated precisely that The United States weathered the 2008-2012 financial crisis better and faster thanks to the fact that 70% of the financing of their companies is through markets or channels other than banking, on which they depend only on the remaining 30%, when in Europe the relationship is the opposite: 30% of markets, and 70% bank credit .
To encourage the IPO, he indicated that the main recommendation is "that no barriers be established" for being listed such as a greater demand for information. "That the regime of listed companies does not represent a disincentive to start trading," he clarified.
In addition to withdrawing the rules that penalize those listed for being so, he demanded that some incentive be given, such as "the deductibility of the expenses of SMEs that decide to make the jump to the Alternative Fixed Income Market (MARF)For example, in the first two years. "
At European level it considered that the relaunch of the Capital Market Union is highly justified precisely now in the face of situations such as the uncertainty of the Covid-19 and Brexit, which advise "strengthening" integration. In his opinion, more integration "does not necessarily mean more centralization," but it should address a homologation of fiscal regulation while bringing financial regulation closer.
Among other aspects, he demanded the same rules for the withholding refund regime when investing in different countries, an equivalent taxation in the distribution of products, also on venture capital or incentives for SMEs to go to markets, among others. "If we want a single European capital market, efficient indeed the fiscal component is very important"He added.
On the other hand, and asked by the shorts that the CNMV banned along with other supervisors between the past March 16 and May 18Albella explained that it was a “exceptional” situation in the face of the risk situation created by Covid-19, reiterating its wish that the CNMV "never again have to ban short positions".
As he said, the shorts provide "Good things" like helping to "deflate bubbles", to even reveal frauds as happened with Gowex, to give liquidity to the sellers or greater volume of negotiation in the markets.
. (tagsToTranslate) Albella (t) (CNMV) (t) on (t) dividends: (t) "The (t) listed (t) sufficiently (t) adults" (t) Category: All (t) Category: Market Report (t) Category: Pulses (t) Category: Pulses Europe (t) Category: Market Pulse