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After months of controversy over the appointment of Mário Centeno as governor of the Bank of Portugal (BdP), Parliament ended up maintaining the possibility that holders of political positions could be appointed to the regulator without the need for a period of displeasure. The deputies of the Budget and Finance Commission (COF) approved, however, this Wednesday a three-year period of disgust for people who have held positions in entities supervised by the BdP, in a law that comes into effect on 1 January. 2021.
The PAN proposed a five-year period of disgust, but the PS had submitted a proposal to reduce this period. In this way, “the people who in the three years prior to the appointment have been part of the corporate bodies, have carried out some activity or have provided services, remunerated or not, or have shares equal to or greater than 2% of the share capital, in entities subject to the supervision of the Banco de Portugal or in whose supervision the Banco de Portugal participates within the scope of the Single Supervisory Mechanism, as well as in companies or groups of companies that control or are controlled by said entities, in the referred period or in the time of appointment “, as well as in auditing or consulting companies in the referred period or at the time of appointment.
According to the amendments approved by the PS proposal, the governor and the members of the board of directors continue to be appointed after a decision of the Council of Ministers, with an indication given by the Minister of Finance, “after a reasoned opinion” of the COF, however, cannot, the nomination or nomination proposal must be made within six months prior to the end of the current legislature or between legislative elections. Therefore, the objective of the PAN’s nomination was to have the approval of a 2/3 majority.
It was also approved that during the respective mandates the members of the Board of Directors of the BoP may be appointed as governor or, in the case of directors, for the functions of lieutenant governor, “for the remainder of the initial term, and may not, in the case of of appointment for the functions of governor, this period is less than five years ”.
The members of the Board of Directors of the BdP may also be re-elected in the same body “provided that, between the dates of dismissal and appointment, the period corresponding to the period of effective exercise of functions has elapsed”.
The changes in the nomination rules also establish that the appointment of the members of the Board of Directors of the BoP must ensure a minimum representation of 40% of each sex, rounded, when necessary, to the nearest unit.
(Updated at 11:25 am)
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