Attention to Complaints and Enquiries by Investors 2018 Annual Report Attention to Complaints and Enquiries by Investors 2018 Annual Report Comisión Nacional del Mercado de Valores Edison, 4 28006 Madrid Passeig de Gràcia, 19 08007 Barcelona © Comisión Nacional del Mercado de Valores Reproduction of the content of this report is permitted provided that the source is acknowledged. All of the CNMV's regular reports and publications can be found on the Internet at www.cnmv.es Layout: Composiciones Rali, S.A. ISSN: 1989-2071 Table of contents Abbreviations 11 1 Introduction 17 2 Changes in the complaints handling procedure 23 2.1 Regulatory changes in 2017 23 2.2 Issues that need to be adapted 23 2.3 Reasons for non-admission 24 2.4 Duration of the procedures 25 2.5 Transitional adaptations to the procedure laid down in Order ECC/2502/2012 resulting from the obligation to adapt to Law 7/2017 25 3 Activity in 2018 29 3.1 Documents filed with the CNMV Complaints Service 29 3.2 Processing of the documents 33 3.2.1 Pre-processing stage 33 3.2.2 Processing and resolution stage 34 3.2.3 Follow-up stage 35 3.3 Complaints resolved in 2018 37 3.3.1 Pre-processing stage 37 3.3.2 Final stage 42 3.3.3 Follow-up stage 52 3.3.4 Entity rankings 54 3.4 Information provided by the entities 65 3.5 CNMV Complaints Service meetings with the heads of customer service departments 71 3.5.1 CSD location in the internal structure of the entities 71 3.5.2 Procedural Issues 71 3.5.3 Informative issues 72 3.6 International cooperation mechanisms 72 3.6.1 Financial Dispute Resolution Network (FIN-NET) 72 3.6.2 International Network of Financial Services Ombudsman Schemes (INFO Network) 74 3.6.3 Cross-border complaints 74 4 Criteria applied in the resolution of complaints 83 4.1 Marketing/simple execution 83 4.2 Investment advisory services and client portfolio management 115 4.3 Prior information 129 4.3.1 Securities 129 4.3.2 Collective investment schemes (CIS) 142 4.3.3 Discretionary portfolio management 149 4.4 Subsequent information 150 4.4.1 Securities 150 4.4.2 Collective Investment Schemes (CIS) 193 4.4.3 Discretionary portfolio management 201 4.5 Orders 202 4.5.1 Securities 203 4.5.2 Collective investment schemes (CIS) 217 4.6 Fees 223 4.6.1 Securities 223 4.6.2 Investment funds 236 5 4.6.3 Portfolio management 247 4.6.4 Advisory services 250 4.7 Wills 251 4.8 Ownership 281 4.9 Operation of the entities’ CSD 290 5 Enquiries area 297 5.1 Enquires 297 5.1.1 Enquiry volumes and channels 297 5.1.2 Subjects of enquiries 299 5.1.3 Key subjects of enquiries 300 5.1.3.1 Enquiries and complaints relating to the stock market performance of the shares of Distribuidora Internacional de Alimentación, S.A. (DIA) 300 5.1.3.2 Enquiries and queries relating to changes in the minimum trading price of certain securities in the electronic trading system (SIB), and queries relating to the implementation of minimum lot trading requirements 301 5.1.3.3 Enquiries relating to the status of shareholders of Abertis Infraestructuras, S.A. (Abertis) after the voluntary takeover bid carried out by Hochtief Aktiengesellschaft for 100% of the company’s share capital, expressing an intention to delist its shares, which were delisted on 6 August 2018 302 5.1.3.4 Enquiries relating to an heir’s wish to know where a deceased’s securities are deposited, in addition to information on acquisition dates and prices 302 5.1.3.5 Enquiries relating to the delay in the admission to listing of the capital increase carried out by Urbas Grupo Financiero, S.A. in 2015 302 6 List of figures Figure 1 Types of investors that apply to the Complaints Service 29 Figure 2 Origin of the investors that address the Complaints Service 30 Figure 3 Type of entities 30 Figure 4 Complaints against credit institutions 31 Figure 5 Complaints against investment firms and management firms 31 Figure 6 Complaints against investment firms and CIS management companies compared with credit institutions 32 Figure 7 Percentage distribution by presentation mode 32 Figure 8 Place of filing 33 Figure 9 Breakdown of PRP concluded in 2018 38 Figure 10 Reasons for requesting a petition for rectification 39 Figure 11 Response to petitions for rectification 40 Figure 12 Grounds for petitions for pleadings 41 Figure 13 Response to petitions for pleadings 42 Figure 14 Complaints concluded in 2018 42 Figure 15 Types of non-admissions 46 Figure 16 Grounds for non-admission after petition for pleadings 47 Figure 17 Reasons for non-admission not rectified after response 48 Figure 18 Time to completion by type of non-admission 48 Figure 19 Distribution of types of complaint resolution 50 Figure 20 Percentage of resolution type 50 Figure 21 Time to completion by complaint type 52 Figure 22 Follow-up actions 53 Figure 23 Replies from complainants 54 Figure 24 Percentage of decisions favourable to the complainant by entity 60 Figure 25 Percentage of acceptances/mutual agreements by entity 62 Figure 26 Subjects of enquiries 300 7 CNMV List of tables Attention to Complaints and Enquiries by Investors 2018 Annual Report Table 1 Presentation mode 32 Table 2 Complaints processed in full in 2018 37 Table 3 PRP concluded in 2018 38 Table 4 Non-admitted complaints concluded in 2018 43 Table 5 Types of non-admissions 43 Table 6 Complaints concluded in 2018 49 Table 7 Resolution of complaints concluded in 2018 49 Table 8 Reasons for complaints concluded in 2018 51 Table 9 Follow-up actions for reports favourable to the complainant 53 Table 10 Ranking of entities by number of complaints resolved 56 Table 11 Ranking of entities by timescale for reading the notification of opening complaint procedures 57 Table 12 Ranking of entities by timescale for responding to the initial petition for pleadings 58 Table 13 Ranking of entities by percentage of decisions favourable to the complainant 59 Table 14 Ranking of entities by number of acceptances and mutual agreements 61 Table 15 Ranking of entities by percentage of follow-up actions reported after a report favourable to the complainant 63 Table 16 Ranking of entities by percentage of acceptance of criteria or rectification after a report favourable to the complainant 64 Table 17 Complaints filed relating to the securities market 67 Table 18 Complaints related to the securities markets not admitted by entities in 2018 68 Table 19 Complaints relating to the securities market admitted and resolved by entities in 2018 70 Table 20 Number of enquiries by channel 298 8 List of exhibits Exhibit 1 Summary of complaints relating to simple execution/marketing 113 Exhibit 2 Summary of complaints relating to advisory services/portfolio management 127 Exhibit 3 Summary of complaints relating to information prior to the purchase of securities 141 Exhibit 4 Summary of complaints relating to information prior to the purchase of CIS 148 Exhibit 5 Summary of complaints relating to subsequent information on the securities 192 Exhibit 6 Summary of complaints relating to subsequent information on CIS 200 Exhibit 7 Summary of complaints relating to securities orders 216 Exhibit 8 Summary of complaints relating to CIS subscriptions and redemptions 222 Exhibit 9 Summary of complaints relating to securities fees 235 Exhibit 10 Summary of complaints relating to CIS fees 246 Exhibit 11 Summary of complaints on the execution of wills 279 Exhibit 12 Summary of complaints relating to ownership 289 Exhibit 13 Summary of complaints relating to the operation of the CSD or Customer Ombudsman 292 9 Abbreviations AA. PP. Public Administration Services ABS Asset-backed security ACGR Annual corporate governance report AIAF Asociación de Intermediarios de Activos Financieros (Spanish market in fixed-income securities) AIF Alternative Investment Funds ANCV Agencia Nacional de Codificación de Valores (Spain’s national numbering agency) ARDR Annual report on director remuneration ASCRI Asociación Española de Capital, Crecimiento e Inversión (Spanish association of capital, growth and investment entities) AV Agencia de valores (broker) BIS Bank for International Settlements BME Bolsas y Mercados Españoles BTA Bono de titulización de activos (asset-backed bond) BTH Bono de titulización hipotecaria (mortgage-backed bond) CADE Central de Anotaciones de Deuda del Estado (public debt book-entry trading system) CC. AA. Autonomous regions CCP Central counterparty CDS Credit default swap CDTI Centre for the Development of Industrial Technology CFD Contract for differences CNA Competent national authority CNMV Comisión Nacional del Mercado de Valores (Spain’s National Securities Market Commission) CO Customer Ombudsman CP Crowdfunding platforms CSD Central securities depository CSDR Central Securities Depositories Regulation DGSFP Dirección General de Seguros y Fondos de Pensiones (Directorate-General for Insurance and Pension Funds) EAFI Empresa de asesoramiento financiero (financial advisory firm) EBA European Banking Authority EC European Commission ECA Credit and savings institutions ECB European Central Bank ECR Entidad de capital riesgo (venture capital firm) EFAMA European Fund and Asset Management Association EICC Entidad de inversión colectiva de tipo cerrado (closed-ended collective investment entity) EIOPA European Insurance and Occupational Pensions Authority EIP Public interest entity 11 EMIR European Market Infrastructure Regulation EMU Economic and Monetary Union (euro area) ESFS European System of Financial Supervisors ESI Investment firms ESM European Stability Mechanism ESMA European Securities and Markets Authority ESRB European Systemic