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INVESTIGATION PARLIAMENTARY RITE Nr 7/X INVESTIGATION PARLIAMENTARY RITE Nr 7/X Eventual Commission survey exercÃ cio of parliamentary supervision of banking systems, capital markets and insurance whereas the effective cio exercÃ, diligent, proactive and preventive responsibilities entrusted by law to the supervision authorities of the banking systems, financial and capital markets is a good value public ado reinforcement;
Whereas the existence of serious flaws in the exercÃ heat of these responsibilities may induce a systemic risk © mico harmful is reputation and credibility enjoyed by the banking and financial system and the national stock exchange;
Whereas some of these ilÃ get denÃ instance has been public, paragraph or reached otherwise the knowledge of the authorities of supervision and that, eventually, there will have been averiguaÃ and the appropriate punishment, nor induced the reinforcement of preventive supervision procedures to prevent susceptÃ or make your repetition future;
Considering that many of these alleged ilÃ citos already will have eventually prescribed under the legislation against ordenacional applicable and that this is a perverse incentive to favorÃ is generalizaÃ of the practice of these explicit ilÃ;
2 whereas this perverse effect is boosted by the fact that currently the activity of so-called universal banking-that integrates the traditional activities of commercial banking, investment banking and insurance activity â unfold in a single global financial market, including µ s jurisdiction off-shore is the duties of an exchange of information and transparency of the squares of the national financial paÃ ses developed in which Portugal integrates;
Whereas in paÃ ses of reference, such as the United Kingdom and the United States, the occurrence of ilÃ serious, partly similar citos, triggered investigation © rites and parliamentary initiatives, not just of rating the performance of supervision, but also of the legal framework in which they operate, including their global model of supervision;
Taking into account that have been heard in Committee of budget and finance, the Governor of the Bank of Portugal, the President of the PORTUGUESE SECURITIES MARKET COMMISSION and the Minister of State and finance, in this case as well as a former Chairman of the SEC, and even Dr. Filipe Pinhal, former President of Bank Millenium/BCP and the industry cios of the existence of serious flaws in exercÃ cio responsibilities of supervision the above referenced were supported , expanded and degradated by this set of hearing µ;
Whereas, with respect to the indispensability of the legal framework review exercÃ heat of such supervision activities, as well as the remarkable ³ rias references of insuficiÃ against ordenacionais applicable-in order to better prevent and prevent the occurrence of new and relevant ilÃ citos graves, taking into account the increasing sophistication and mutaÃ of procedures and veÃ glasses used by offenders 3 Government â said he was satisfied with the current legislation and that intends to promote your review; The PSD parliamentary group comes to your excellence the President of the Assembly of the Republic, under in nea b) Nr 1 2nd article of the Law Nr 5/93, from March 1, republished after ³ s your second change introduced by law nº 15/2007, of April 3 , the conducting of a survey, as well as the Constitution of the respective parliamentary Committee survey to assess the actions of the Government and of the following of supervision banking and finance, the Bank of Portugal, the Committee Values and market Furniture and the Instituto de Seguros de Portugal, according to the subject and the following fundamentals explained.
The Parliamentary Commission survey concerns, namely: 1. Determine the accuracy with which complied with the duties of supervision of the Banco de Portugal in prevention and averiguaÃ of infringement of µ s particularly serious, as provided for in article 211Â and in other articles of the general scheme of µ s institutions of credit and financial corporations , against the majority of entities under your supervision and, in particular, the Bank Millennium BCP, forward/BCP, including odo perÃ January 1999 to December 2005;
2. Whether the supervision work properly in µ s operation to increase capital, predominantly funded by the grant of credit of the offeror to subscribers, in particular in the case of capital increases of BCP, carried out in 2000 and 2001;
4 3. Find out where µ s objective conditions the Bank of Portugal considers verified the existence of conducting fraudulent µ s of social capital;
4. Check, what was the analysis done and what were the conclusions of the extraction and its µ s legal fundamentals of banking supervision in relation to multiple complaints, including from small shareholders that if considered harmed, by such practices eventually jagged offerors and find out if they had followed up.
5. Determine the accuracy with which complied with the duties of supervision of the Banco de Portugal in prevention and averiguaÃ of µ s operation conducted by entities under your supervision and is using these veÃ culos jurisdiction financial µ s off-shore is not subject to the obligations of transparency and international cooperation recommended by the European Union and the OECD whose Constitution and start-up phase of the activity practice of infringement is serious or especially serious µ s laid down in the law;
6. measuring the fulfillment of these duties in µ s supervised institutions, particularly in the years 2000 to 2004;
7. Whether the banking supervision used properly the means in your power to identify companies veÃ culo domiciled in µ s jurisdiction off shore if required at µ s supervised institutions, and in particular to the BCP, and if performed properly in order to forestall and prevent in future the occurrence of new cases similar to those that investigated during the period of 2002 to 2004 perÃ.
5 8. Whether the banking supervision required, especially in perÃ odo in parsing, the µ s supervised institutions all the information that you should apply to the respective bodies social ³ Ã how decided the Constitution of such veÃ glasses off-shore.
9. Whether the intervention of the Governor of the Bank of Portugal, to convene for a meeting, a sub group of shareholders of reference of BCP, 21 December, to address issues µ s related to this bank General Assembly convened for January 15, constituted a precedent, if it is practical and in which situation µ s or if , for otherwise, it is incompaginÃ with the isenÃ duties and independence that regulators must have the face to µ s supervised institutions and their stakeholders, including shareholders.
10. Whether this actuaÃ of Governor hurts or not the right is equality of relevant information about listed companies that all current or potential shareholders of µ s institutions have, in accordance with the CODE say ³ furniture Values.
11. measuring in every situation µ s identified above, to the extent applicable, the actuaÃ of the SEC and the National Council of financial supervisors;
12. measuring because allegedly the SEC does not have acted in a timely manner to ensure, pursuant to CODE ³ say furniture Values rivers, the defense of the interests of small shareholders, allegedly treated differently in relation to some major shareholders, in the case of capital increases made by BCP in 2000 and 2001, which led to prejuÃ zos resulting from executing the pledge of action µ s pledged for bank credits to purchase their action µ s. 6 13. Find out why the SEC alleged, in particular in the period of 1999 to 2005 perÃ, has no verified sufficiently, with the means to your range, the µ operation of capital increases carried out through those veÃ glasses off shore, in respect of any infringement of µ s graves provided for in CODE ³ say Furniture Values.
14. measuring accuracy of the actuaÃ of the Instituto de Seguros de Portugal in detection and averiguaÃ of any ilÃ citos bass which, by law, may have been committed by µ s financial institution, in the relative is the management of the portfolio of the respective pension funds µ s, particularly in connection with activities conducted by these Scythian ilÃ veÃ glasses off shore;
15. Detect and propose legislative initiatives in future enhance the effectiveness and compliance results available to the supervision authorities which establish am corporate governance rules (corporate governance) in line with the µ s international standard reference, which clarify the nature of implicit banking ilÃ rivers and serious and very serious financial, and to increase the fines provided for in their schemes against ordenacionais so that they will be effective deterrents of these explicit ilÃ.
The Foundation of the indispensability of the Constitution of this Committee of Parliamentary survey is essentially explained in optical characterization of your subject accurately and detailed.
This explicitaÃ of the warrants another essential basis, i.e. to be confined to your subject, the Parliamentary Commission of survey ensures that interferirÃ is not in any way, in the 7 actuaÃ of supervision and of the judiciary, in the framework of averiguaÃ ¢ is currently underway, subject to duties of confidentiality in legal terms. On the other hand, to perform your object, the Parliamentary Commission of survey contribuirÃ are positively to strengthen the reputation and credibility of that currently boasts the banking system and national financial.
Potala are Balaji, February 28 2008 members of the PSD Parliamentary Group,
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