Today, the CMVM published 22 decisions on administrative infraction proceedings, whereof 17 were anonymised.
The CMVM’s decisions are based on:
– 11 proceedings concerning infractions for breach of auditor duties, such as the duty of rotation of the partner responsible for directing or directly carrying out the statutory audit; breach of the By-law rules The Statutory Auditors Bar Association and of different Audit and Audit Guidelines, with 10 warning notices issued and a €50,000 fines applied;
– 5 proceedings for breach of the duties of financial intermediaries, namely the duty to communicate information to the CMVM within the legally established deadlines; and for breach of the duty to provide quality information to the CMVM, two warning notices were issued and a €25,000000 fine and a €100,000 fine, suspended for a period of two years;
– 3 proceedings for breach of duties by entities responsible for the management of Collective Investment Undertakings, namely, for failure to assess the assets in the portfolio of investment funds in accordance with the envisaged regulatory criteria; for providing untruthful information to the CMVM; for breach of the duty to obtain prior authorisation from the CMVM to lease property to an entity in a controlling or group relationship with the entity responsible for managing the fund that owns the real estate; for breach of the duty to comply with and control compliance with the constitutive documents of the collective investment undertakings, the duty to send the depositary of the real estate portfolio held by the collective investment undertaking managed by said and the duty of sound management of the collective investment undertaking. A fine of €100,000 was imposed and two fines of €75,000 each, all of which were suspended for a period of two years.
– 2 proceedings one for the breach of the duties of entities responsible for the management of collective investment undertakings and the other, for the breach of the duties of financial intermediaries. Among the infractions in question are, for example, breach of the duty of sound management for exceeding the limits applicable to the indebtedness of funds, for having exceeded the limit of exposure to shares, for providing the CMVM with information on the composition of the portfolio which was not truthful, for breach of the duty to ensure compliance with the procedures adopted for the control of the limits of the investment fund portfolios under management and because the risk capital assets that were part of the portfolio were not evaluated at least every six months. In view of the infractions, a fine of €100,000 was imposed in one of the administrative infractions and in the other, four fines were imposed, one for €75,000, one for €12,500 and two for 40,000 euros. The fines imposed were suspended for a period of two years.
– 1 proceeding for intentional breach of the duty to communicate qualified holding to the CMVM, in particular, the duty to inform the CMVM, within 4 (four) trading days after the day on which the fact or knowledge became known, the holding of the qualified shareholding in the issuer’s entity and, concomitantly, exceeding the threshold for participation in the voting rights and share capital of the issuer. Two fines of €25,000 each were imposed.
Every two months at least, the CMVM will publish on its website in accordance with the law and after the period of judicial review has elapsed, decisions on the administrative offenses for serious or very serious infractions. This complements the information of the quarterly publication of the administrative infraction statistics, which seeks to follow the principles of transparency for the market regarding the CMVM’s sanctioning activity.
For more details, see the sanctions and administrative infractions page available on the CMVM website.