Today, the CMVM published 7 decisions regarding administrative infraction proceedings, whereof 4 were disclosed anonymously.
The CMVM decisions are based on the following:
– 1 proceeding for breach of duties in disclosing market information since information was not disclosed on the CMVM’s Information Disclosure System in a complete, clear, factual and lawful way in Consolidated Reports and Accounts and in Corporate Governance Reports. A fine of 1,000,000 euros was applied, partially suspended, a fine of 750,000 euros, one of 600,000 euros, one of 400,000 euros, one of 300,000 euros and three fines of 150,000 euros suspended for two years. The Competition, Regulation and Supervision Court confirmed the CMVM’s decision, changing the amounts of the fines imposed.
– 1 proceeding for breach of the market integrity, transparency and equity duties due to orders to buy shares admitted to trading on a regulated market, subsequently executed by a financial intermediary, which were likely to jeopardize the regularity, transparency and the credibility of the market, as they do not correspond to a true buying intention, but are intended to sustain and mark the price of such shares. Two fines of 100,000 euros were imposed, one suspended entirely and the other partially.
– 1 proceeding for intentional breach of the duty to not hold more than 50% of the bonds of the same issuer by collective investment undertakings managed by an entity, of the duty to entrust the assets that constitute the portfolio of collective investment undertakings to a single depositary, the duty to disclose complete information, the duty to communicate to the CMVM, within the legally stipulated period, reports and accounts and the respective auditor’s report concerning the activity of the first six months of each financial year and the duty to communicate to the CMVM, within the legally stipulated period, reports and accounts per annual financial year and the respective auditor’s report. A partially suspended fine 75,000 euros was applied.
– 2 proceedings concerning the breach of financial intermediary duties. One for breach of the duty of not using clients’ money in the interests of third parties is involved, of not using their activity to protect the legitimate interests of their clients, and of not giving priority to the interests of the client, both in relation to their own interests and in relation to the interests of the members of their governing bodies. The other proceeding concerned, namely, the breach of the following duties: not carrying out acts outside the scope that results from the authorisation to exercise investment consulting activity; not receiving unlawful benefits; registration of activities that may give rise to conflicts of interest; assessment of the appropriate nature of the transactions according to the client’s profile; to provide customers with due and quality information and in physical support; to establish, in writing, an internal policy that allows it to know the nature of each client, at all times, as a retail or professional investor, or eligible counterparty, and to adopt the necessary procedures to achieve it. A fine of 50,000 euros was imposed, suspended for two years, and two fines of 75,000 euros, partially suspended for two years.
– 2 proceedings for breaching auditors’ duties, such as the duty of rotation of the partner responsible for directing or direct execution of the statutory audit of the accounts of a public interest entity, with a fine of 20,000 euros, suspended for a two-year term, and two warnings.
The CMVM publishes, at least every two months on its website, under the legal terms and after the legal challenge period has elapsed, the decisions related to administrative infraction proceedings for serious or very serious infractions. This is complementary information to the quarterly publication of the administrative infraction proceeds statistics, which seeks to follow the principles of transparency with the market regarding the sanctioning activity of the CMVM.
For more details, please see the sanctions andinfractions page available on the CMVM website.
This news item was originally published by the Portuguese Securities Market Commission (CMVM PT). For more information, see the Source Link.