Wednesday, February 1, 2017

Providing misleading information to clients in banking will give the prison – TVI24

Money. Pixabay

The Government has come to Parliament a draft law to set up as a crime “the use of false or misleading information in the attraction of investment”, after the recent problems that have affected the banking national. Those who do not remember, for example, the in the event that BES?

when set To false or misleading information that presents “favorable situations with no correspondence in reality, or omit facts unfavorable that were to be presented”, the diploma easily associated with what happened with the Banco Espírito Santo: about 4,000 customers invested 434 million euros in commercial paper of companies belonging to the Espirito Santo Group. Commercial paper that was sold at a branch of the BES as if it were – and was not – a financial product of the bank.

recent Cases that occurred in the Portuguese financial system, some related to the practice of illicit, in addition to demonstrating the failures in regulation and supervision and financial, caused serious losses both direct and indirect, to the national economy”.

that Is precisely what is read in the proposed bill, which makes the headline today in the edition of the Daily News. The document adds that, “in most of those cases, the absence or delay in obtaining the sanction effective responsible has affected the credibility of the entities in charge of regulation and supervision of the financial sector, as well as the confidence in the judicial system”.

Who can risk arrest are the holders of management or administration of entities that issue securities (stocks or bonds) or other financial instruments and that, with a view to attracting investment, to use “information, economic, financial or legal false or misleading”. In this case, the penalty can be between one and six years in prison.

however, the punishment will be more heavily if they “are effectively underwritten or sold securities or other financial instruments obtained or investment received funding”. There the frame the criminal will of two to eight years in prison.

The draft law provides that the penalties to be reduced to half if those who violate the law “to repair fully the damage caused up to the date of the commencement of the trial”.

Providing false information or biased behavior is currently penalised by the Code of Securities, while “market manipulation”.

The Government wants to establish a crime with specific features, reviewing also the sanctions applied, which are in effect for 25 years for the securities.

The goal is to have the hand more heavy: to double the limits of the fines of the contraordenações less serious, that are now to be a minimum of 5,000 to a maximum of 1 million euros. Already the contraordenações very serious and serious are the same, up to a maximum of 2.5 million and 5 million, respectively.


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