There are currently three insolvency supervisory bodies in Spain, each with two main functions: supervision of the solvency of the entities falling within the scope of its responsibilities, on the one hand, and protection of depositors, investors or insured parties, as appropriate, on the other hand. In other words, the respective supervisory body oversees both the so-called ‘solvency’ regulation and regulation of ‘conduct’. This system has worked properly to date, at least in the area of solvency. In fact, a prestigious international financial journal recently praised the work done by one of Spain’s supervisory bodies.
On the international scene, there are three main types of supervisory models, with minor variations: sectorised (still in place in Spain), integrated (a mega-regulator, with the UK’s Financial Services Authority as the archetype) and functional, which is the newest. The model that the government mentioned several days ago is of that last type, with which there is less experience.
