Portuguese Financial Regulatory Landscape: Key Considerations for Robo-Advisers, Online Lenders, and Payment Processors

Robo-Advisers

In Portugal, robo-adviser services may fall under the scope of MiFID II, subjecting them to “best execution” obligations. This requires participants to obtain the best possible result for clients.

Online Lenders

Online lending is a complex area in Portugal, with various regulatory requirements depending on the type of borrower and loan.

Authorisation Requirements

• Granting loans: Authorisation by the Bank of Portugal is required as it is deemed a banking activity.
• Peer-to-peer lending: Some forms may fall within crowdfunding regulations governed by the Securities Market Commission.

Loan Regulations

Loans are subject to specific rules based on criteria such as:

• Consumer loans:
  • Regulated by Decree-Law no. 133/2009 of 2 June (in line with Directive 2008/48/EC).
• Mortgage-backed loans:
  • Governed by Decree-Law no. 74-A/2017 of 23 June (transposing Directive 2014/17/EU).
• Micro and short-term loans:
  • Allowed for payment and e-money institutions, subject to meeting specific criteria and conditions.

Payment Processors

Payment processors facilitate cashless transactions by transferring funds from a payer to a payee. They have flexibility in selecting their preferred payment rail, but certain fixed transaction systems are established within traditional account-based payment systems.

By understanding these regulatory complexities, stakeholders can ensure responsible lending practices and adhere to the necessary requirements within the Portuguese financial sector.