In view of articles concerning penalties imposed by the Securities & Exchange Commission to those involved in the issue of Kyknos Portfolio Investment Co. Ltd., the SEC wishes to highlight the following:
1. CSE Regulation 30 concerning Mergers & Acquisitions refer to the following:
1. In addition to its authority derived from article 8 of the Law for the imposition of fines (to a maximum of CYP 2.000) in cases where it is confirmed that breach of regulations relating to listed titles, in accordance with section (2) of Article 60A of the Law, the SEC has authority, by a substantiated decision, to impose to those in breach of the law in accordance with the said Regulations, the following penalties:
(a) Suspension for a maximum of three years, of voting rights during general meetings of the company or
(b) Their removal, for a period of maximum five years, from the Board or from the position of Director of the company and not to allow their appointment to such positions during this time.
2. The SEC insists on the strict implementation of law and regulations by all entities involved as well as the SEC itself, acting within the framework of legislation. Therefore it is illogical that the SEC would take decisions and impose penalties outside the framework of legislation and regulations.
3. The developments concerning Kyknos prove directly one more time the deficiencies of the current legislative framework which governs the stockmarket and particularly the insufficiency of monetary penalties which the SEC can impose in order to make them a preventative measure to such actions.
4. One more time, events prove the immediate need for the passing of legislation concerning the SEC which will afford it substantial and effective powers of intervention in such instances.
1. CSE Regulation 30 concerning Mergers & Acquisitions refer to the following:
1. In addition to its authority derived from article 8 of the Law for the imposition of fines (to a maximum of CYP 2.000) in cases where it is confirmed that breach of regulations relating to listed titles, in accordance with section (2) of Article 60A of the Law, the SEC has authority, by a substantiated decision, to impose to those in breach of the law in accordance with the said Regulations, the following penalties:
(a) Suspension for a maximum of three years, of voting rights during general meetings of the company or
(b) Their removal, for a period of maximum five years, from the Board or from the position of Director of the company and not to allow their appointment to such positions during this time.
2. The SEC insists on the strict implementation of law and regulations by all entities involved as well as the SEC itself, acting within the framework of legislation. Therefore it is illogical that the SEC would take decisions and impose penalties outside the framework of legislation and regulations.
3. The developments concerning Kyknos prove directly one more time the deficiencies of the current legislative framework which governs the stockmarket and particularly the insufficiency of monetary penalties which the SEC can impose in order to make them a preventative measure to such actions.
4. One more time, events prove the immediate need for the passing of legislation concerning the SEC which will afford it substantial and effective powers of intervention in such instances.
Friday, 16 March, 2001 - 10:38