CMVM publishes questions and answers Banif – publico

                 

                         
                     

                 

 
 

The Securities Market Commission (CMVM) published today on its Internet portal a set of 18 questions and answers about the Banif situation and the impact of the resolution measured in financial instruments issued by the bank. According to the supervisor of the Portuguese market, the aim is “to provide more rapid clarification to the main issues that have been raised by investors.”

Among the various issues addressed, the CMVM said that under the credit institutions resolution procedures the law provides that Banif creditors (including shareholders) “can not bear, because of the measure of resolution, more injury than they would have supported if the bank had entered into liquidation at the time it was applied to measure resolution by the Bank of Portugal.

However, “the impact of the resolution of measure on the Banif shareholders can only be quantified after an assessment of the bank with a view to settlement of the same, evaluation which will be done by an independent body at the request of Resolution Authority (Bank of Portugal), “he stressed. Only after completion of this assessment is that may result in the eventual establishment of an amount due to shareholders and Banif creditors, according to the settlement rules. “So in graduation role of shareholders – in last place after the general creditors and subordinated creditors – They will fit, similar to what happens in a common settlement process primarily take any losses,” underlined the CMVM .

the organization led by Carlos Tavares also indicated that the Banif shares, although they were excluded from trading on a regulated market may be traded outside of this framework, but this implies that those who may acquire has not guaranteed the right to invoke a protection regime because of the implementation of the resolution. These transactions, although made out of the market, “implies the assumption of costs and commission payments, depending on the price list of each financial intermediary,” said the governor, adding that maintenance on account of these securities also entails costs related to the registration service and deposit of securities.
As for the tax treatment applicable to the ownership of the Banif actions, resolution of the target at the end of 2015 but whose exclusion from trading of its securities already happened in 2016, the CMVM said only the Tax Authority may provide information, “taking into account the circumstances of the case.”

The CMVM also advanced with a set of “questions and answers” on issues related to the Banif bondholders, differentiating immediately subordinated debt holders, which was not transferred to Banco Santander Totta, the not subordinated debt holders, which was transferred to that bank and, therefore, makes them creditors Santander Totta.