The government approves the path for the Financial Client Defense Corporation
The Ministry of Economy is moving today toward Madrid to establish the headquarters of the new Administrative Authority for the Defense of Financial Clients. The Cabinet gave its approval last Tuesday, but a final decision still depends on the parliamentary process. The bill sets in motion the creation of a new body that aims to transform the existing public system for handling complaints against banks, insurers, and investment firms.
In its push for decentralization, the State General Administration approved an agreement for incentives by the Council of Ministers last February. Autonomous communities, councils, and town halls can bid to host the headquarters of newly created public sector organizations. The selection processes for placing the new entities are already underway, including Spain Artificial Intelligence Supervision Agency and the Spanish Space Agency.
Officials discuss the green light for the Financial Client Defense Corporation project
Still, this selection procedure does not apply to the new financial authority. The institution is treated as predesignated, meaning a venue decision is not bound by the usual bidding process. Processing began before the decree establishing venue designation was approved, and the implementation will align with the mandate as soon as it is established, according to a government minister. The Royal Decree from last March outlines the venue selection process and notes that it does not apply to entities whose creation is predetermined or authorized by law.
About 250 staff will join the new authority
The financial client ombudsman has received complaints that currently sit with the Bank of Spain, the National Securities Market Commission, and the Directorate General of Insurance and Pension Funds. These entities are mostly based in Madrid, and the expectation is that the new authority will absorb part of the regional workload. The government estimates a need for around three sectoral auditors to meet demand for public services. The first two institutions are hesitant about participating in the new body, while others see potential benefits from joining and sharing expertise. The economy ministry believes recruitment will proceed smoothly, potentially drawing professionals from existing auditing firms, and notes that a smooth transition is possible if talent comes from current auditors, according to the minister.
The deputy prime minister has urged caution regarding any fear that courts might harbor around the new authority. It was previously reported that banks could question the authority’s legitimacy, yet key aspects of the project have strong support from the Council of State and other professional bodies. The minister argues that, legally, the project is solid and will enable rapid work while respecting due process.
Proposed adjustments to the Structural Guidelines for National Tribunals
The government approved the bill without waiting for a consultation process. The General Assembly for the Judiciary had already allowed the law to proceed even if the governing body’s report was not published in time. The judiciary’s plenary session is not expected to review the issue before December, and the ministry remains open to parliament making changes during the procedure. The focus is on ensuring the legislation is clear and workable, and that the bodies involved can engage in timely discussion if adjustments are needed, as stated by the foreign minister.
The Economy Ministry also notes that the Economic and Social Council advised that the authority’s decisions are binding on any requested amount, not limited to a threshold like twenty thousand euros. The majority of complaints fall below this threshold, and officials saw a reasonable balance in that approach. The ministry did not adopt the CES recommendation to remove fines up to five hundred euros for clients who repeatedly file unfounded requests. Officials emphasize the importance of preventing strategic abuse by customers and acknowledge that practice will reveal more about the authority’s effectiveness over time.