Capital Markets Comparative Guide: Legal And Regulatory Framework

1. Which laws and regulations govern the capital markets in your jurisdiction?

Capital markets are, first and foremost, regulated by:

• the Financial System Act (FSA), approved by Decree-Law 32/93/M; and
• the Commercial Code, approved by Decree-Law 40/99/M.

Considering that the FSA dates from 1993 and the Commercial Code from 1999, the local regulator has issued directives to keep the local market up to speed with the latest trends. These include:

• Notices 009/B/2019-DSB/AMCM and 008/B/2021-DSB/AMCM ('Bond Directives'); and
• Notice 008/B/2022-DSB/AMCM ('Guideline on Bond Registration and Settlement').

The above are the core regulations with relevance to capital markets. Currently Macau does not have a stock market and the bond market is in its early stages, despite a significant push for its development since 2019.