The Commission of the Securities Market (CMVM), has issued on last Thursday a list of 19 answers to frequently asked questions from investors relating to the capital increase of Banco Comercial Português," recalling the given step that, despite having approved the prospectus, this act does not imply the validation generalized information provided by the BCP in the document about the new application of capital to shareholders.
"THE CMVM does not have the legal authority to approve or disapprove the increases in capital decided by the issuing entities under its supervision," explains the supervisor right at the second answer to the questions that most concern investors.
"it Should be noted that the approval of the prospect 'is the act that implies the verification of its conformity with the requirements of completeness, truthfulness, timeliness, clarity, objectivity and lawfulness of the information'", explains the Portuguese SECURITIES market commission, citing the Securities Code. "The 'approval of the prospectus and registration do not involve any warranty as to the content of information, the economic or financial situation of the offeror, of the issuer or of the guarantor, the viability of the offer or to the quality of securities' (article 118.St/7 of the Cat.VM)", he said.
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This clarification of the supervisor is especially relevant given that the BCP assumes in the long prospectus on the capital increase, the operation has progressed and will end without that the accounts of the institution are audited. In the document, the bank explains that "the financial statements" which presents in the different reports and presentations on the increase of capital "require the exercise of judgments and the use of assumptions and estimates which, if incorrect, could have a significant impact on the activity, financial situation, results, future outlook and capital ratios of the Bank".
On the issue of non-audited accounts, the BCP says that Deloitte has been appointed only in April 2016 as the statutory Auditor of the group, by which "the date of this prospectus Deloitte has not yet conducted any audit of the consolidated financial statements of the Bank, which will only be made to the accounts for the period ended 31 December 2016". In this way, Deloitte was only able to do a "review report" limited to the accounts of the bank until September last year, a revision that, however, "has a scope substantially less than an audit conducted in accordance with international standards on auditing," explains the bank.
in Addition to the question relating to the information provided by the BCP in the prospectus, the CMVM on the remaining answers to the questions that investors have raised explains in detail the deadlines and molds in the capital increase of BCP will take place, namely at the level of the operating rights to new shares of the bank and how these should be exercised, or, alternatively, sold to other interested parties.
The supervisor discusses the significance of the existence of a banking union to ensure the "underwriting" of shares that are left at the end of the capital increase – a warranty that cost BCP 35.1 million euros – and remember that the new shares of the BCP, if all goes without interruptions, will be admitted to trading on principle 9 February.