In financial market reputation is valued very much. Especially when it is possible to lose it, so lawyers try to avoid knowing data of ir clients when y are under investigation of supervisors. But CNMV has taken a step forward in publication of dossiers and is thus equated to National Commission on Markets and Competition (CNMC). This last organism has always made public names of companies when initiating sanctioning files.More information
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Until now, CNMV only released files closed and approved by its Council. Even, in some cases, y could not be made public until resolution of resources of elevation, which delayed more than one year publication.
Sebastián Albella, president of CNMV, explains to questions in this newspaper: "We have established a series of criteria to ensure that proper and balanced use of publication of initiation of dossiers is made, which will be done when y concur Circumstances such as that are relevant cases that generate special interest of public, that suppose undue practices of special gravity on which it interests to direct a general message to market so that it does not propagate or that, being of special seriousness , relapse occurs. We believe this decision will be very useful for market. "
The regulation was amended in 2015, under mandate of Elvira Rodríguez in Commission. It was established possibility of publishing initiation of files but with limitations and eliminating some personal and confidential data. According to article 275 of Law on stock market (LMV), making public personal data is subject to a "previous weight, sufficiently reasoned, between public interest, taking into account favorable effects that, toger, generate on best Transparency and operation of stock markets and investor protection, and damage caused to offenders. "More details of sanctioned firms
In addition to making public initiation of files, CNMV has decided to give more data in sanctions resolutions.
In Official Gazette of state of July 5, two penalties imposed on company of Values Link securities were published. For first time, resolution publishes company on which infringement was made, Cellnex, period in which proceedings took place and what infringement consisted of.
Thus, it has imposed 75,000 euros of sanction to Link Securities for "carrying out practices of market manipulation with shares of Cellnex, in several sessions of market of August and September of 2015". In addition, it was punished with 15,000 euros to Link "to make short sales discovered of shares of Cellnex", in same period of 2015. In this case, it has taken two years since irregularity was committed until offender has been known.
For some experts, ambiguous wording of article 275 of LMV on "enforceability, registration and publicity of sanctions" influenced fact that no open file was made public under chairmanship of Elvira Rodríguez, who held maximum position From commission until October 2016.
As se sources point, so far this balance of which article speaks has been translated in favor of possible offender and care of his reputation. However, it has now changed its mind and new CNMV's head team considers that openings of files are an appropriate way of warning or potential investors of risks y are assuming with certain practices. If procedure is expected to be completed, which usually takes between six months or one year, or customers may end up falling into trap of an offender or using a product that carries problems. The goal is to close way to company or people who maintain irregular behaviors.
So far, CNMV has only published names of those affected in open investigations when it came to investment bars that were working without authorization and were denounced. In this case, it is a matter of closing way for those who work outside law and avoid problems that end up causing m to grow. Exceptionally, Commission has only announced to date some research to listed companies with large public repercussions. This was case of Pescanova and Gowex, and practically no more, although it was not an opening of files.
Albella has been maturing this idea for some time. In March 2017, President of Commission presented a battery of 50 objectives or measures included in his Plan of activities. "It is a tool that is re and we want to make use of it, with appropriate cautions and setting rules so that it is not an arbitrary system," he said. It has now taken step that will begin to be implemented in September.The Commission gains most of lawsuits
Now that CNMV is going to take a step forward in publishing opening of files, it is important to know what happens with sanctions that it imposes.
According to annual report of 2017 of CNMV, of 19 sentences dictated "in matters sanctioning by national hearing and central courts of contentious-administrative, 15 fully confirmed contested resolutions, two estimated appeal and They cancelled resolutions appealed, one reduced amount of one of penalties "and anor cancelled part of sanction. This last has been appealed by administration.
Only in 2017, 17 administrative resources were filed against sanctioning resolutions before Ministry of Economy: 16 were of elevation and one of replenishment. So far, six of elevation and replacement have been resolved and all have been dismissed, according to CNMV data.
In addition, Supreme Court dismissed three appeals that were brought against confirmatory sanctions, and issued two cars and five inadmissible orders for appeals. One of m was brought by administration against a judgement of national court which had cancelled a sanctioning resolution of Commission.
As regards procedures on non-sanctioning resolutions, "all resources have been resolved in a favorable manner to CNMV", annual report notes.
In addition, Commission has won four appeals against resolutions that dismissed patrimonial responsibility in relation to commercialization of preferential shares or subordinated debt by various financial institutions. The same thing happened in five procedures — all of m by withdrawal — filed against dismissal of a claim of patrimonial liability against CNMV for its performance with an investment fund.