Analysis of the current state of the Panamanian capital market, including the confidence threatened by various financial setbacks, and the opportunities to make the much needed structural changes.
Martesfinanciero.com reviews three episodes which have shocked the Panamanian financial market in recent weeks: "These events have shaken the financial system and put market players on alert.
In Panama reports state that $15 million in assets have been recovered in the process of forced liquidation of the brokerage firm Financial Pacific, an amount which covers only 70% of the total invested by customers.
Problems in the Panamanian stock market continue, and now it is the Liquidating Board of brokerage firm Pacific Financial which is giving the bad news to customers of the company. The assets recovered only cover 70% of the funds registered in the bank accounts of the clients who invested in the entity.
The Superintendency of Securities in Panama has issued a fine of more than $300,000 for violations and administrative misconduct in the public offering of securities.
The highest fine recorded in the history of the Superintendency of Securities in Panama has generated high expectations, as now they are starting to resolve investigations which were pending and which may also lead to the possibility of criminal investigations.
After two years of allegations, suspensions and interventions, the Securities Market Regulator has ordered the liquidation of the brokerage firm.
From a statement issued by the Securities Regulator (VPS):
The Superintendencia del Mercado de Valores (SMV), wishes to communicate to investors and the general public its resolution SMV No.358-14 of August 11, 2014, on the Compulsory Settlement (Administrative) of Casa de Valores Financial Pacific Inc.. which is ordered, under the provisions of Article 302 of the Consolidated Text of the Law on Securities Market.
More than a year after investigations were started into alleged irregularities and after having been suspended from operating in the country, the stock exchange has annulled its contract with the firm.
From a statement issued by the Panama Stock Exchange:
Although the Superintendent of the Stock Exchange in Panama has lifted the suspension of the brokerage firm Financial Pacific the Stock Exchange has not approved its integration.
According to the president of the board of the Stock Exchange, Felipe Chapman, "there are still many unanswered questions", relating to this organization. Questions such as "How was the loss recovered, what were the terms of the sale, who are the buyers and what is their interest in the business?," said the official.
A court ruling states that the complaint filed against the financial company was untimely, considering that the SMV learned about the facts deemed irregular from information that was received, and not when it was analyzed.
From a statement by the Superintendency of Securities (VPS):
PUBLIC NOTICE
For the respect that the general public deserves, especially the investing public, the Superintendency of Securities (hereinafter SMV), the regulator and supervisor of the Panamanian stock market, believes it is necessary to make a statement on some news that has recently taken up important space in various media concerning the Complaint filed by this SMV and which was sent to the Public Prosecutor Office of the First Judicial Circuit of Panama against the brokerage firm Financial Pacific Inc., its former directors and any others that may be linked to it.
Following approval of the sale of the shares to Brazilian group Mendo Sampaio and the withdrawal of the complaint against the Superientendente of Securities, Financial Pacific has been authorized to resume operations.
A statement from the Superintendency of Securities (VPS) reads:
The decision of the SMV was taken after a thorough audit of the brokerage firm Financial Pacific Inc. by this Office, through which it has been shown that the irregularities for which the SMV ordered the suspension of the license to operate this brokerage firm, including over B/.12 million being missing, have been rectified in full.
At the same time as the Superintendency of the Stock Market approved the sale, the financial company formally withdrew its complaint against the Superintendent Alejandro Alfaro Abood.
Added to the problems faced by Financial Pacific (FP) is the embezzlement of $12 million.
The prolonged intervention of the Supreme Court in the Financial Pacific puts into question the adequate functioning and reputation of the financial system.
The latest news is that the Chief Superintendent of the Panama Stock Exchange (SMV), Alejandro Abood, could recuse himself in the stock market scandal of the brokerage firm Financial Pacific (FP), suspended for embezzling 14 million dollars. FP has filed a lawsuit against Abood for his decision to reorganize the company and then suspend it until the close of the findings or a resolution from the Supreme Court, which theoretically impedes him.
The Panamanian Financial company, which has had its activities suspended, is trying to get partners to inject capital, in order to address the identified shortfall of $11.5 million.
Panama's Supreme Court, in a decision challenged by financial market analysts, put the breaks on a reorganization of Financial Pacific, which had already been put into progress after being ordered by the Superintendency of Securities (VPS), leading the directors of the lender to seek the essential composition of capital, after what was reported as a criminal act by one of its officials.
Executives from the brokerage firm Financial Pacific will ask the SMV to reconsider the suspension of its license to operate in Panama.
The Superintendency of Securities of Panama (SMV) suspended the operating license of the brokerage house because of a shortfall of $11.5 million in "customer’s cash ".
The Supreme Court has canceled the reorganization order of Financial Pacific set by the Superintendency of Securities of Panama.
The Superintendency of Securities of Panama had ordered "the suspension of the license of the brokerage firm Financial Pacific Inc., for a period of 15 calendar days so that the brokerage firm may remedy all the anomalies found or else the Superintendency will order further action. "
The Panamanian brokerage firm has been under "reorganization", and a preliminary report noted lack of controls and oversights, and a shortfall of more than $11 million.
A statement by the Superintendency of Securities (VPS) reads:
...
That on October 9, 2012 a formal notification was received from the CEOs of the Bolsa de Valores de Panamá and the Central Latinoamericana de Valores, SA, Mr.
An order has been given for the "reorganization" of Financial Pacific for offering fixed-term investments without being authorized to do so, and for differences between customer accounts and bank balances.
A statement from the Superintendency of Securities in Panama reads:
Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand. The OHNE brand has 8 product lines: square bread, sweet...
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