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, constituted by Law 6/2023 of 17 March on the Securities Markets and Investment Services.
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.
