Bank of Portugal cut Centeno cooling-off period

Portugal’s central bank allowed former governor Mário Centeno to take a role at an insurance company in Spain’s Abanca group after a six-month cooling-off period, rather than the two years normally set by its own rules. The decision matters because it shows how Portugal’s post-employment restrictions for top regulators can be shortened in specific cases.

ECO reported that the Bank of Portugal’s ethics committee, chaired by Rui Vilar, found no grounds to impose a longer restriction than the six months already set by the European Central Bank’s ethics committee. Centeno was appointed in October to Abanca Vida y Pensiones as an independent non-executive board member, one year after leaving the governorship.

According to Rui Vilar, the committee took into account that the role was non-executive and that Abanca Vida y Pensiones operates in insurance, a sector not supervised by the Bank of Portugal. It also considered that, during his term as governor from July 2020 to October 2025, Centeno “was not responsible for prudential supervision,” although he had substituted board members who held that remit.

The Bank of Portugal’s rules for current and former board members are stricter than the ECB’s and normally require a two-year gap before joining a credit institution or a group controlled by one. But the rules also allow that period to be reduced or waived following a justified request. The ethics committee concluded that, in this case, no additional restrictions were warranted.

Originally published at Eco.pt