The Investor Ombudsman is appointed by the Board of Directors of the Madrid Stock Exchange and has full autonomy to carry out its functions and to organise and freely dispose of the material resources and administrative services necessary for the performance of its duties.
This work has to be considered within a framework in which the public authorities exercise their protection of investment in the stock market through two channels: the regulations and the supervision and oversight of securities activities.
Regulation
The Investor Ombudsman is appointed by the Board of Directors of the Madrid Stock Exchange and has full autonomy to carry out its functions and to organise and freely dispose of the material resources and administrative services necessary for the performance of its duties.
This work has to be considered within a framework in which the public authorities exercise their protection of investment in the stock market through two channels: the regulations and the supervision and oversight of securities activities.
Regulatory power can be classified into:
- Common legislation, consisting of the Commercial, Civil and Criminal Code, in particular the Corporate Enterprises Act and other rules that consider the rights and interests of shareholders and bondholders and regulate their internal relations.
- Special legislation, namely Act 24/88 of 28 July 1988 on the Securities Market and its implementing regulations.
These rules also regulate the supervisory, oversight, inspection and disciplinary actions of the CNMV and the stock exchange's governing bodies.
Stock exchange institutions focus their protective work via a threefold approach: regulatory, informative and arbitral.
- Regulatory protection, consisting of the general and internal rules of conduct and the technical regulation of market organisation, operation and oversight, aimed at technical improvement through the Exchange's governing bodies, by means of Circulars and Operating Instructions (Self-Regulation).
- Information protection, through the opening of information and customer service offices and services.
- Arbitration protection, in a generic sense, through professionalised fast-track channels for the resolution of disputes arising from stock market transactions, which is known as the Investor Ombudsman at the Madrid Stock Exchange.
The immediate root of the Investor Ombudsman lies in these transformations in the stock market that have shaken the traditional foundations of investor security and confidence.
But it also has other, broader social and institutional reasons and foundations. The deepest and most general one has its origin and is embedded in the alarming concern about the reduction of the individual's own social space, of the person and of his or her possibilities of being listened to and heard, with evident ignorance and violation, in many cases, of his or her rights as a citizen. This is recognised in Article 51 of the Constitution.
The institutional basis for the creation of the figure of the Investor Ombudsman was the result of an effort to improve the organisation itself, in the belief that better communication with the recipients of the services would not only benefit them, but would also improve the quality of their business activities.
General rules of conduct of the Investor Ombudsman
- The procedure to be followed by the Investor Ombudsman will be governed by the principles of being free, expeditious and confidential.
- Attention to investor complaints will have a preliminary phase before being submitted to the Investor Ombudsman, who will deal with queries and complaints presented in any form, although a written record will be required if they are to be presented formally.
- If the complaint cannot be resolved in the previous instance mentioned in the preceding point, it may be submitted to the Investor Ombudsman, and its processing and resolution will be carried out in writing, without prejudice to possible mediation by the Investor Ombudsman with the parties in order to reach an agreement.
- Complaints that are subject to or are subsequently submitted to judicial or arbitration proceedings, to the National Securities Markets Commission, to the Bank of Spain's Complaints Service or to any other official or private body for the protection of consumers, users, customers, shareholders or investors are excluded.
- Neither will those that affect persons or entities other than the claimant, the Barcelona Stock Exchange or its members, or affect criminal matters, be admitted.
The regulations are contained in Circular 2/2021 of the Sociedad Rectora de la Bolsa de Valores de Bilbao, dated 26 March, Bilbao Stock Exchange Listing Bulletin on 30 March 2021.