The Hellenic Capital Market Commission (HCMC) is Greece’s national securities regulator, responsible for supervising and enforcing laws that govern the country’s financial markets. Its role is broadly comparable to the SEC in the United States or the FCA in the UK. The HCMC’s core mandate is to ensure the stability, transparency, and integrity of the Greek capital markets, protect investors, and support the orderly functioning of exchanges and licensed firms.
It operates under the authority of the Greek Ministry of Finance but is functionally independent. As a member of the European Securities and Markets Authority (ESMA), the HCMC also works to apply and enforce EU-wide financial regulation—particularly MiFID II, MAR, Prospectus Regulation, and UCITS/AIFMD frameworks—within the Greek market.
Main Responsibilities
The HCMC’s remit covers a broad spectrum of financial market activity in Greece. Its main areas of responsibility include:
- Supervising listed companies on the Athens Stock Exchange (ATHEX), including disclosure requirements, market abuse prevention, and corporate governance compliance.
- Licensing and overseeing investment firms, asset managers, mutual funds, and financial advisors operating in Greece.
- Monitoring market transactions for insider trading, market manipulation, and other forms of misconduct.
- Approving prospectuses for public offerings of shares, bonds, and other financial instruments.
- Supervising takeovers, mergers, and tender offers, ensuring compliance with takeover laws and transparency rules.
- Collaborating with European and international regulators to align local enforcement with cross-border standards and developments.
The HCMC can impose administrative sanctions and penalties on both individuals and institutions. It also has the authority to suspend trading, withdraw licenses, and refer serious violations for criminal investigation when necessary.
Regulatory Scope
The HCMC oversees a wide range of entities and activities, including:
- Publicly traded companies on the ATHEX
- Brokerage firms and investment services providers (ISPs)
- Portfolio management companies and mutual fund managers
- Real estate investment companies
- Alternative investment fund managers (AIFMs)
- Credit rating agencies operating within Greece
- Market infrastructure providers, including clearing houses and depositories
The HCMC enforces rules on market transparency, financial reporting, conflict of interest management, and client asset protection, ensuring that investors receive fair treatment and have access to accurate information when making decisions.
Corporate Governance Oversight
The HCMC is the authority responsible for enforcing Greece’s Corporate Governance Code, especially in the context of listed companies. It checks whether firms meet required standards for board structure, shareholder rights, internal controls, and executive pay transparency. In this role, it helps improve investor confidence in Greek firms—particularly important in a market where family-owned businesses and state-influenced firms are common.
Market Abuse and Enforcement
A critical part of the HCMC’s work involves preventing and punishing market abuse. This includes:
- Insider trading – where someone trades using material non-public information
- Market manipulation – such as spreading false rumours or placing deceptive trades
- Failure to disclose material events or irregularities in financial statements
The HCMC monitors trading activity and disclosures, either directly or in cooperation with ATHEX’s market surveillance unit. It can conduct investigations, subpoena documents, and coordinate with law enforcement or other regulators when necessary.
Penalties can include fines, bans from the industry, or court proceedings. However, resource limitations and legal delays have historically been challenges in high-profile cases, which can undermine public trust if not addressed effectively.
Investor Protection and Education
One of the HCMC’s lesser-known roles is investor education. It publishes guides, alerts, and warnings—especially on high-risk investment schemes, fraudulent offerings, and unlicensed firms. It also participates in campaigns aimed at improving financial literacy and encouraging responsible investing.
In recent years, the HCMC has warned retail investors about:
- Unregulated forex and binary options brokers
- Cryptocurrency scams and fake ICOs
- Social media-driven pump-and-dump schemes
These warnings are published on the HCMC’s official site and often circulated through the media and financial institutions.
Relationship with European Regulators
As a full member of ESMA, the HCMC contributes to shaping regulatory policy at the EU level. It also enforces European directives and regulations locally. This includes handling passporting rights for EU financial firms operating in Greece, cross-border fund distribution under UCITS/AIFMD, and ensuring Greek firms meet the MiFID II requirements for client protection, trade reporting, and conduct of business.
The HCMC’s participation in pan-European regulation is particularly important for maintaining the credibility of the Greek capital market and supporting foreign investment.
Challenges and Criticism
The HCMC, like many financial regulators in smaller markets, operates with limited resources and staff. It has historically been criticised for slow enforcement, particularly in complex fraud or insider trading cases. During the Greek financial crisis, some questioned the effectiveness of oversight mechanisms, especially related to bank disclosures and public trust in listed companies.
Efforts have been made to improve transparency, speed up enforcement timelines, and invest in better technology for surveillance. However, the regulator still faces ongoing pressure to strengthen governance standards, improve market confidence, and adapt to newer risks like fintech, crypto-assets, and ESG-related disclosures.