first thing that strikes the attention in the Securities Market Law passed in August last year is one such proposed conceptual changes so characteristic of the revolutionary process: the traditional figure of the "corridor" is renamed "Securities Authorized Operator."
and also highlights the final order that these characters are excluded from the good business that is compromise with the bonds of domestic government debt. But both, in reality, are merely anecdotal details about when entering the reading of the Act and the rules that has since been broadcasting the National Superintendency of Securities and, it seems, may just further bury the stock market. The recent intervention by the brokerage firms, as is known, settled on a prudent operators that looks much to fear: no one wants to appear above contrary to the decisions of the powerful Sunaval. But recorder off some examples and analysis of how even the very issuers of securities traded today on the Caracas Stock Exchange are considering the way out of circulation.
"The regulations should be reformed, and was about 20 years of operation. But the authorities opted for the destruction of the market and to demonize the entire activity," says Noris Aguirre, one of the most knowledgeable people behind the scenes of the financial sector: Aguirre was president of the Caracas Stock Exchange, the Guarantee Fund of Deposits and Banking Protection, Fogade, and the Caja Venezolana de Valores. For her, the law is "entirely discretionary, punitive and does not incorporate the market needs."
Aguirre notes that the text promulgated on August 12, 2010 (reprinted to correct errors in Official Gazette 380 760, 5 November) "eliminates the collegiate body, ended with the board of what was the National Securities Commission and left everything to the Superintendent. finished also with the need for expertise in the area to handle the agency regulator. And we all know how discretionary power in this country. "
Indeed, the review of evidence that he articulated in office of Superintendent decide on virtually all aspects of Sunaval and-literally-on care issues relating to subjects should be governed by this law, which includes companies with securities listed on the Stock Exchange. The appointment or removal of the Superintendent's presidential order and, for its part, the appointment or dismissal of officials Sunaval decided by the Superintendent.
According to Article 10 of the Act, there are only two kinds of "serious misconduct" that could make the Superintendent. No relating to misconduct or corruption. They refer simply not to punish others who have violated the Securities Exchange Act. Nothing more, for anything else, go and report to the Attorney General.
On the contrary, Article 50 has 23 paragraphs detailing the errors in variants that may be incurred by subjects of law-that is, companies and individuals whose activities are governed by this legislation-which referred to fines ranging from 5 thousand to 10 thousand tax units. Article 51 includes 10 paragraphs on offenses that are punishable by two to six years in prison. And between 52 and 55 complement the possible errors that involve punishment of three months to two years in prison, disqualifications and fines of between 10 thousand and 100 thousand tax units.
"Sanctions have nothing to do with the fact," says Aguirre, "If a broker does not send its financial statements on time can be suspended and to go to jail. There is no proportion between the offenses and penalties."
Almighty
consulted executives of financial firms have the same assessment: the end of Act to restrict the capital market. And also agree that too many powers of the Superintendent, as now occupied by Thomas Sanchez.
"may involve a broker just because it seems that there are reasons without first a statement of reasons, you can set arbitration mechanisms to resolve conflicts when it is determined in the Code of Commerce; can decide what is or is not a value, instruments or securities which are regulated by law, so a days could determine which applies in cases of real estate registration options, endorsement of invoices or bills of exchange, for example ", said a condition of off the record.
may, subject to literal interpretation of the articles, go beyond the private sphere of business. The law makes no distinction between "subjects" who governs, therefore you should assume that applies to everyone in their entirety.
So the door is open there for the Superintendent to decide, among other things, what are the requirements for internal and external audits (Article 8, paragraph 28), how to be a corporate membership for companies making public offering of shares (Article 17), how to keep their accounts regulated persons (39), how should shape their administrative boards, the representation of shareholders and the election and functions of the authorities (41) and how they should be shareholders' meetings (42).
The former National Securities Commission established the manner in which brokers / houses brokerage, should submit their financial statements and what were the levels of capital and sufficient liquidity to operate. Now the officer has the power to do the same with the issuers of securities. That, at least, is what is read.
can also punish or be magnanimous. Article 8, paragraph 19, states that the Superintendent will decide to increase or reduce the "contributions" to be paid by market players. And you can also cancel or suspend the registration on the National Register of Securities of any "duly justified cause," but the law leaves open the interpretation of what is good cause.
And can and it did- set and amend fees and financial contributions to the actors covered by the law. That, at the discretion of Aguirre, violates principles of tax law. " But in the Official Gazette of January 11, 2011 (39,591) were issued to the relevant regulations issued by Thomas Sanchez. Pay and pay
"From the economic point of view the setting of rates to cancel is not understood, are inflated rates," said Aguirre, "And that has made dealers and companies decide to stop their activity in the market ". One analyst asked
explains the details of establishing the text of the "Rules relating to fees and contributions that people must pay subject to scrutiny by the Superintendence of Securities. "
For starters, it was decided that all those authorized to make public stock offering to pay an annual contribution of 1.5% of the value of the issue. And that applies also for securities issued before the rule and now listed on the ailing stock market.
The text does not define whether it refers to the nominal value of the papers or trading on the secondary market, as usual, is higher. Assuming In the case of the face value of the title, to review the list of the Caracas stock exchange is there, for example, cases of some banks to be paid to the only large amounts Sunaval hold their shares in the ring.
It also indicates that the stock exchanges or canceled agricultural products and inputs by 1% for sales transactions are made within it. Previously, operators had to pay 0.1% for purchases and sales, so that what is expected is that the stock transfer that charge to customers. "The costs are multiplied," says the broker: "In a cross transaction of buying and selling we are talking about 1.2% when 0.2% previously."
And that 1.2% must be added 1% by way of Income Tax. Examples
draw the picture clearly. January 3 this year, the newsletter states that Banesco BVC has outstanding 25 million shares of preferred calls. The nominal value of that role is 10 Bs, so the total is 250 million Bolivars. Only those securities remain outstanding bank should cancel the Sunavan 3 million 750 thousand Bolivars.
And if we preferred shares and the "normal" annual check Sunavan Banesco to be 18 million 306 thousand Bolivars. Provincial bank will also have to pay a gross amount: 13 million 924 thousand Bolivars. And EDC would have to transfer 4 million 938 000 bolivars because although its shares are not traded and registered on the National Register Securities and listed on the board of the bag.
Against this background, the analyst says, "many issuers have announced they will withdraw from the National Registry of Securities." Something that, indeed, need the approval of the superintendent that changed the landscape in this way.
For brokerage firms, or the "Securities Authorized Operators" - was established to pay 1% of transactions "with half-values" that should never be less than one thousand units per year tax. This means that if the operator generates revenue must pay and if not, too. At an intersection, which is the normal transaction, it's up 1% to cancel the sale and 1% for the purchase. Y these costs, of course, also be transferred to the client. Among
something or not to box, just to stay active Authorized Operator is obliged to pay to the Superintendent, at least the equivalent of one thousand tax units: 76 000 bolivars today. Before this rule was the annual contribution of 100 UT.
If a company plans a release of 10 million shares, for example, with a nominal value of 10 Bs, just register it will cost 1 million 500 thousand Bolivars and an equal amount each year that these titles are in circulation but no longer will produce any direct benefit. That
, excluding new "tariff" set forth in paragraph two of the standard.
currently sell a stock generates costs 3.1% 1.1% going to the BVC, which includes 1% for Suneval, another 1% of Income Tax and another 1% commission to the operator. And we're talking about actions that the best offer 18% yield. The transaction involves buying and selling between 5 and 6% in costs.
"Before the tariffs were defined in the law and could only be modified in the National Assembly, now the Superintendent waives the fixed and who wants," argues the expert: "We have an expensive market and today is better for companies to ask money to banks. "
Is this the end securities market? It seems so.
El Universal, 30/04/2011, original source
0 comments:
Post a Comment