The representatives of the capital market regulator, theNational Securities Commission (CNVM), say the institution ispreparing legislative changes in a bid to raise the value of fineslevied in the case of market abuse, after recent problemsfound.
"The biggest penalty we can enforce, as a ruling institution, isa fine of 5% in share capital and there are many firms with a verylow share capital. This is how we've come to fine firms registeredin tax havens, such as Belize, with a 200-dollar share capital. Astep that can be taken is for fines to be calculated as apercentage of turnover. For instance, the Competition Council canimpose penalties of as much as 10% in a company's previous yearturnover," says Bogdan Chetreanu, CNVM commissioner.
He specified the institution was working on some concretestipulations to increase the amount of fines. However, for thesestipulations to come into effect, the state's representatives haveto approve in Parliament the necessary changes related to capitalmarket legislation.
