The National Securities Market Commission (CNMV) will open disciplinary actions to 9 financial groups, including Bankia and NGC, for the sale of preferred shares and subordinated debt, with a nominal value of 6,212 million euros. A total of 22 breaches of current regulations have been registered.
This was announced by the president of the stock exchange supervisor, Elvira Rodríguez, during the presentation at the Congress of the first report of the Committee to monitor the preference shares, which has a month to live.
The number of clients who hired these products after being warned that the operation was not convenient for them “was very high” As stated , the purpose of these sanctions is to create a discipline that allows it not to repeat itself in the future a problem of these characteristics because, he said, the parliamentary commission that presides has no executive tasks.
The president of the CNMV has ensured that financial institutions did not apply “the strictest rules” on advising clients in the commercialization of preferred shares.
Rodriguez has declared, as it is shown in the aforementioned report, that the number of clients who hired these products after being warned that the operation was not convenient for them “was very high”.
In addition, the percentage of customers to whom the entities have acknowledged having personally recommended the contracting of the same “is absolutely marginal” , which means that “the most stringent standards corresponding to the advisory service , basically the test of suitability, which is more demanding than the convenience, “he stressed.
Finally, he noted that, in general, “although with important exceptions”, financial institutions were able to prove compliance with information obligations to the information clientele. The report states that, “except in specific cases,” the entities complied with the regulations, but admitted that this assertion is based solely on the documentation provided and that it can not verify whether, as the clients allege, there were verbal recommendations to acquire them. .
According to the data of the report that Rodríguez has reported, until 2011 acquisitions by preferred retailers ranged between 1,626 and 4,526 million annually and purchases of subordinated debt remained between 48 and 1,943 million, while in 2012 they reached a nominal volume of 9,999 and 2,663 million, respectively.
Prices, which were around 100% of nominal, are now around 50-70% in entities that have not needed public assistance and 30-50% in the rest.
He also revealed that in 2012, there was “a sharp increase” in the claims received from investors, since there were 10,900 compared to about 2,000 in each of the previous years.
Ask for more flexibility to hire staff
On the other hand, Elvira Rodríguez has also announced her “intention” to present in the coming months to the Government a proposal for regulatory reform that will include, in addition to greater flexibility to hire staff, “a boost to the independence of the agency at all levels ”
“I firmly believe that the CNMV has a fundamental role to play in the economic recovery of our country that, in large part, goes through the recovery of confidence,” said Rodriguez, who added that if you can contribute to this goal ” we will be one step closer to solving the employment situation, which is the true common goal. ”
The president of the CNMV explained that in addition to the objectives set for this year, the Commission has assumed new powers in the last three years.
“It is necessary to increase the independence of the CNMV”
In addition, it will have to face the specific mandate of the Government in the area of corporate governance and has had to dedicate resources for participation in the Monitoring Committee of preferred shares.
“Although the CNMV has an excellent staff” , Rodríguez stressed, “we must be aware that the complexity of the environment and the difficulties of the markets complicate the task considerably”, and this in a context in which “society demands more than the performance of the institutions. ”
Therefore, he assured, “it is necessary” to increase the independence of the CNMV with respect to the Government in the matter of hiring personnel, since currently the job offers of the Commission require an approval of the Executive and must be framed in the joint public offer of annual employment of the public sector.
“What is involved is that the institution has the necessary flexibility to ensure that they have adequate resources to do their job well,” he concluded.