The long-awaited Independent Governing Authority for the Protection of Financial Clients began its journey after a formal confirmation last Tuesday of the draft law approved by the Council of Ministers. The process now moves into several months of required legal steps to establish the new structure, designed to overhaul Spain’s framework for handling complaints against banks, investment firms, insurers, and other financial entities. The government remains confident that reforms will be implemented, aiming for a functioning authority within the 2023 horizon, according to sources cited by EL PERIÓDICO, a newspaper within the same media group.
The timeline depends on Parliament. Lawmakers will need time to refine the legislation as they review its provisions. Officials from the Ministry of Economy suggest it could take less than a year for the authority to become operational, potentially before the end of 2023. The schedule anticipates a federal election in which the project would continue into the next legislature if Parliament is dissolved before consent is reached. In sectors like finance and auditing, some observers prefer that the existing CNMV handle all claims, while others hope elections occur before the law gains parliamentary approval.
Despite opposition, the government strongly backs the creation of the new authority. Officials emphasize a private focus and a priority to resolve issues quickly as part of a plan to tackle financial exclusion. The aim is a swift, decisive intervention rather than a drawn-out process. The same approach guides plans to improve customer service, with an expedited agenda to enact commitments in the near term, subject to review by the Council of State. The initiative also aligns with measures recently requested by Nadia Calviño, the vice president of economics, to bolster support for vulnerable banking customers.
Monthly contribution
The main innovation of the new client defense authority is that its decisions will be binding for claims up to 20,000 euros. It will also be able to rule on issues beyond the remit of existing supervision, such as provisions declared in bad faith or matters involving cryptoassets. The agency arises from the 2013 European directive and comes with a promise of EU-backed reforms for the year in exchange for Community funds. Yet creating the authority is not mandatory—the European Commission would only expect to see significant progress in this direction.
The preliminary draft will now be opened to public consultation for five weeks, inviting input from interested parties such as financial service employers, firms, or consumer associations. Afterward, the General Technical Secretary of the Ministry of Economy will seek input from other institutions, including the General Judicial Council, the data protection agency, and ministries of Justice, Consumption, and Finance, with the final stage involving the State Council. The Council of Ministers plans to approve the bill in the second half of the year so Parliament can begin its examination and consider potential amendments. Some sources note that substantial changes are expected during the legislative process.
Building and headquarters
Financing for the agency will come from contributions by financial organizations, set at 250 euros per request, with initial reliance on general state budgets for startup costs. The government has yet to finalize next year’s budget discussions, and debate continues about whether to allocate specific funds to establish the new structure. Even if a new budget line is not approved in an election year, it is possible to include a line for the authority within the overall spending cap.
The administration has a clear view of the initial budget needs and future personnel costs. It plans to refine figures after consultations with stakeholders across the financial sector. The draft envisions the organization hiring external personnel for auxiliary tasks, while processing and evaluation would require approval from senior officers. It also leaves open the possibility of engaging staff for services currently provided by the Bank of Spain and the CNMV, though it remains uncertain whether those employees would transfer to the new agency.
The exact location for the agency has not been decided. A final decision will follow a government-approved competition process due at the end of March to determine where the new authority will be established. Several regional governments have submitted proposals, and officials note that Madrid would not necessarily be the decisive choice. The eventual site will depend on how the competition unfolds and where the authority can operate most effectively.