PowerPointPrsentation - PowerPoint PPT Presentation

1 / 35
About This Presentation
Title:

PowerPointPrsentation

Description:

A Criminal Liability - Corrupt Practices. B Market Abuse in EU ... Culpable conduct - Neglect of duties of members of corporate governance. European Perspective ... – PowerPoint PPT presentation

Number of Views:51
Avg rating:3.0/5.0
Slides: 36
Provided by: andreasw9
Category:

less

Transcript and Presenter's Notes

Title: PowerPointPrsentation


1
SPECHTRechtsanwalt GmbH
Teinfaltstraße 8 A-1010 Vienna/Austria Tel. 4
3 1/219 68 69 Fax. 43 1/219 68 69
20 Email vienna_at_sboffice.at www.sboffice.at
2
Foreign Broker Foreign Securities
U.S. PerspectiveEuropean PerspectiveMoscow17
November 2007
SPECHTRechtsanwalt GmbHwww.sboffice.at
3
European Perspective
A Criminal Liability - Corrupt Practices
B Market Abuse in EUC Admission to Market
SPECHTRechtsanwalt GmbHwww.sboffice.at
4
European Perspective
A Criminal Liability - Corrupt Practices
SPECHTRechtsanwalt GmbHwww.sboffice.at
5
European Perspective Criminal Liability -
Corrupt Practices
International Framework
  • Directive 2003/6/EC
  • Council Framework Decision 2001/413/JHA
  • OECD Convention on Combating Bribery of Foreign
    Public Officials in International Business
    Transactions

Austrian Implementation
  • Austrian Act on Criminal Liability of Legal
    Entities

SPECHTRechtsanwalt GmbHwww.sboffice.at
6
European Perspective Criminal Liability -
Corrupt Practices
Austrian Act on Criminal Liability of Legal
Entities
Applicability
  • decision makers or employees of a legal entity
    commit a criminal offence which brings an
    advantage to a legal entity or was committed in
    violation of the duties of an employee or in
    violation of duties of organs of corporate
    governance of a the legal entity.

SPECHTRechtsanwalt GmbHwww.sboffice.at
7
European Perspective Criminal Liability -
Corrupt Practices
Austrian Act on Criminal Liability of Legal
Entities
  • legal entities, whether formed under of private
    and public law- limited liability
    companies- joint stock companies- savings
    banks- associations- funds- societas europea

Sanction Addressees
SPECHTRechtsanwalt GmbHwww.sboffice.at
8
a monetary fine in an amount of up to 1.8
million euros may be imposed directly against a
legal entity.
European Perspective Criminal Liability -
Corrupt Practices
Austrian Act on Criminal Liability of Legal
Entities
Sanction
SPECHTRechtsanwalt GmbHwww.sboffice.at
9
European Perspective Criminal Liability -
Corrupt Practices
Austrian Act on Criminal Liability of Legal
Entities
  • criminal action occurs through one or more
    decision makers of the legal entity
  • criminal action occurs through subordinate
    employees, who have been enabled through the
    failure of a decision maker to exercise their
    duties of care

Criminal liability imposed when
SPECHTRechtsanwalt GmbHwww.sboffice.at
10
European Perspective Criminal Liability -
Corrupt Practices
Austrian Act on Criminal Liability of Legal
Entities

Criminal liability requires
  • advantage for the legal entity
  • duties/obligations of the legal entity to be
    negelcted

Decision maker
  • managing director
  • member of supervisory board
  • person with controlling influence on
    management
  • other representative

SPECHTRechtsanwalt GmbHwww.sboffice.at
11
European Perspective Criminal Liability -
Corrupt Practices
Criminal Prosecution does not exclude Civil
Liability
Conditions of Civil Liability
- Damage- Causality- Culpable conduct- Neglect
of duties of members of corporate governance
SPECHTRechtsanwalt GmbHwww.sboffice.at
12
European Perspective Criminal Liability -
Corrupt Practices
Business Related Criminal Offenses
  • false reporting (Joint Stock Company Act Sec
    255) - market abuse (Stock Exchange Act 48b,
    48c)- unfair competition practices (Austrian
    Competition Protection Act,)

- acceptance of benefits by public
officials- bribery- fraud- forgery (of
documents)- embezzlement - business espionage
SPECHTRechtsanwalt GmbHwww.sboffice.at
13
European Perspective
B Market Abuse in the EU
SPECHTRechtsanwalt GmbHwww.sboffice.at
14
European Perspective Market Abuse in the EU
EU Directive 2003/6/EC on Market AbuseEU
Directive 2003/124/EC (Implementation) EU
Directive 2003/125/EC (Implementation)
SPECHTRechtsanwalt GmbHwww.sboffice.at
15
European Perspective Market Abuse in the EU
- persons from using inside information he/she
possesses for his own or a third party's
account to acquire or dispose of financial
instruments to which that information relates
Member States shall prohibit
- any person to engage in market manipulation
SPECHTRechtsanwalt GmbHwww.sboffice.at
16
European Perspective Market Abuse in the EU
Inside Information
Characteristics
  • precise in nature
  • not made public
  • relate to financial instruments
  • admitted to market trade
  • may influence the price if public

SPECHTRechtsanwalt GmbHwww.sboffice.at
17
European Perspective Market Abuse in the EU
  • member to an administrative or managing body
  • shareholder of the issuer
  • employee or representative of the issuer
  • engages in criminal activities to obtain inside
    information
  • any person who possesses inside information and
    knows about its nature
  • one who takes part in transaction decisions of
    legal entity
  • Person

SPECHTRechtsanwalt GmbHwww.sboffice.at
18
European Perspective Market Abuse in the EU
  • Market Manipulation
  • transactions or orders to trade which give false
    or misleading signals or secure abnormal price or
    employ fictitious devices
  • dissemination of information through the media
    giving false or misleading signals and knowing
    that information is false

SPECHTRechtsanwalt GmbHwww.sboffice.at
19
European Perspective Market Abuse in the EU
  • Scope
  • action carried out in the territory of Member
    State or abroad constituting insider trading or
    market manipulation concerning financial
    instruments admitted to trading on regulated
    markets in one Member State
  • Exemptions
  • journalists- accepted market practices

SPECHTRechtsanwalt GmbHwww.sboffice.at
20
European Perspective Market Abuse in the EU
  • Transparency
  • Requirements
  • inside information to become public
  • issuer must disclose inside information
  • publication of list of persons with access to
    inside information
  • notification to authorities of suspicious
    transactions
  • notification to authorities of manager dealings

SPECHTRechtsanwalt GmbHwww.sboffice.at
21
European Perspective
C Admission to Market
SPECHTRechtsanwalt GmbHwww.sboffice.at
22
European PerspectiveAdmission to Market
Admission of Securities
Directive 2001/34/EC Admission to Official
Stock ExchangeDirective 2003/71/EC On the
Prospectus for SecuritiesDirective
2004/34/EC MiFIDDirective 2004/109/EC Transpa
rency RequirementsImplemented in Austrian
Stock Exchange Act
SPECHTRechtsanwalt GmbHwww.sboffice.at
23
European PerspectiveAdmission to Market
Investment Firm
  • Any legal person who performs investment services
    on a professional basis (2004/39/EC MiFID)
  • Company with seat and place of administration in
    Austria performing investment services(Austrian
    Securities Supervision Act)

SPECHTRechtsanwalt GmbHwww.sboffice.at
24
European PerspectiveAdmission to Market
Investment Services(MiFID)
  • Reception and transmission of orders- execution
    of orders on behalf of clients- dealing on own
    account- portfolio management- investment
    advice- operation of MTF- underwriting/placing
    of financial instruments

SPECHTRechtsanwalt GmbHwww.sboffice.at
25
European PerspectiveAdmission to Market
  • safekeeping/administration of financial
    instruments for account of clients- granting
    loans to allow to carry out transactions- advice
    on capital structure foreign exchange
    services- investment research and
    analysis- services related to underwriting

Ancilliary Services(MiFID)
SPECHTRechtsanwalt GmbHwww.sboffice.at
26
European PerspectiveAdmission to Market
  • transferable securities- money-market
    instruments- options, futures, swaps- other
    derivatives relating to securities/commodities-
    derivative instruments for the transfer of risk

Financial Instruments(MiFID)
SPECHTRechtsanwalt GmbHwww.sboffice.at
27
European PerspectiveAdmission to Market
Austrian Operating Requirements
At least one of the following- license from
FMA- licence from Member State (Single
Passport)- banking institution
SPECHTRechtsanwalt GmbHwww.sboffice.at
28
European PerspectiveAdmission to Market
Investment Firms have to be Capital Companies
which
  • adhere to capital requirements - do not hold
    clients money or securities- adhere to
    organisational requirements (shareholders,
    directors)

SPECHTRechtsanwalt GmbHwww.sboffice.at
29
European PerspectiveAdmission to Market
Operating Requirements of Investment Firms
  • utilize Best Execution Policy- define type of
    client- provide reporting specific to type of
    client- operate with Internal Controlling
    Department- separate Compliance / Execution /
    Controlling functions

SPECHTRechtsanwalt GmbHwww.sboffice.at
30
European PerspectiveAdmission to Market
Admission of Securities
  • adhere to legislation of state of
    domicile- has market capitalization 1 Mio
    published annual accounts 3 years preceding
    application

Requirements on Issuer
SPECHTRechtsanwalt GmbHwww.sboffice.at
31
European PerspectiveAdmission to Market
Admission of Securities
  • freely negotiable- distribution of sufficient
    number- division of securities must meet market
    requirements

Requirements on Securities
If not listed in state of domicile, reason for
not being listed must not be to protect investors
Non EU Issuer
SPECHTRechtsanwalt GmbHwww.sboffice.at
32
European PerspectiveAdmission to Market
Admission of Securities
  • signature of issuer and member of stock
    exchange- details about issuer and
    securities- approved prospectus

Contents of Application
SPECHTRechtsanwalt GmbHwww.sboffice.at
33
European PerspectiveAdmission to Market
Admission of Securities
  • no requirements regarding form- specified data
    on issuer- specified data on securities- profit/
    loss assessment- Summary - risk assessment

Prospectus
Single Passport PolicyNon EU admitted if
equivalent requirements exist in countries where
originally published
SPECHTRechtsanwalt GmbHwww.sboffice.at
34
European PerspectiveAdmission to Market
Admission of Securities
  • Issuer - Management Body- Supervisory
    Body- Guarantor- Management Company (if
    any)- Scope Place of addressed Public

Persons legally responsible for content of
prospectus
SPECHTRechtsanwalt GmbHwww.sboffice.at
35
SPECHTRechtsanwalt GmbH
Vienna Teinfaltstraße 8 A-1010
Vienna/Austria Tel. 43 1 219 68 69 Fax. 43
1 219 68 69 20 Email vienna_at_sboffice.at www.sboff
ice.at
Moscow Bolshoy Afanasyevsky per, 41A 119019
Moscow Tel. 7 495 933 55 29 Fax 7 495 771 65
34 Email moscow_at_sboffice.co.ru www.sboffice.at
SPECHTRechtsanwalt GmbHwww.sboffice.at
Write a Comment
User Comments (0)
About PowerShow.com