CySec: imposition of administrative fines to Cyprus Popular Bank Co Ltd and Bank of Cyprus 

CySec announcement dated 05 June 2014

The Cyprus Securities and Exchange Commission (CySec) informs the investors that, at its meeting held on 28 April 2014 , has completed its investigation regarding the investment in Greek Government Bonds from Cyprus Popular Bank Co Ltd and Bank of Cyprus Public Co Ltd, where the Commission identified some infringements and concluded to the imposition of administrative fines as follows:
Α. Cyprus Popular Bank Public Co Ltd:

Α.1. The company Cyprus Popular Bank Public Co Ltd, the administrative fine of €1.050.000 in total.

Α.2. Cyprus Popular Bank Public Co Ltd’s Board Members:

Mr. Andreas Vgenopoulos, Non-executive Director, €705.000

Efthimios Bouloutas, Managing Director, €705.000

Christos Stylianides, Deputy Managing Director, Member of Risk Management Committee, €430.000

Panagiotis Kounnis, Deputy Managing Director, €430.000

Eleftherios Chiliadakis, ExecutiveDirector, €170.000

Neoklis Lyssandrou, Non-executive Director, Member of Risk Management Committee,Member of Internal Control Committee, €200.000

Vasilios Theocharides, Non-executive Vice-president, €35.000

Konstandinos Milonas, Non-executive Member, Member of Internal Control Committee, €90.000

Markos Foros, Non-executive Member, Member of Risk Management Committee, Member of Internal Control Committee, €90.000

Annita Filippidou, Financial Manager, €100.000

Provident Fund of Cyprus Popular Bank, €50.000

Dimitris Playpel, Member of the Fund Management Committee, Director of Risk Management Committee, €10.000

Β. Bank of Cyprus Public CO Ltd:

Β.1. The company Bank of Cyprus Public CO Ltd, the administrative fine of €950.000 in total.

Β.2. Members of the Board of Directors of the Bank of Cyprus Public Co Ltd:

Theodoros Aristodimou, Non-executive Director, €530.000

Andreas Iliades, Executive Director, Group Managing Director, Member of the Risk Management Committee, Member of Alco Committee, €530.000

Giannis Kipris, Executive Director,Executive Group deputy Managing Director, Compliance Officer for the Code of Corporate Governance, Member of ALCO Committee, €330.000

Giannis Pechlivades, Executive Director, Α` deputy Group Managing Director, €330.000

Andreas Artemi, Non-executive Director, Member of the Risk Management Committee, €170.000

Kostas Severis, Non-executive Director, Member of the Internal Control Commitee , Member of the Risk Management Committee, €110.000

George Georgiades, Non-executive Director, Member of the Internal Control Committee, Member of the Risk Management Committee, €110.000

Kostas Chatzipapas, Non-executive Director, Member of the Risk Management Committee, €110.000

Nicholas Tsakos, Non-executive Director , Member of the Risk Management Committee, €110.000

Andreas Iakovides, Non-executive Director, Member of the Internal Control Committee, €80.000

Stavros Konstandinides, Non-executive Director, Member of the Internal Control Committee, €80.000

Christos Chatzimitsis, General manager of Finance and Strategy, €80.000

The Commission’s investigation was focused, among others, on:

1. The information that the companies Cyprus Popular Bank Public Co Ltd and Bank of Cyprus Public Co Ltd provided to investors and the public in general, through the Publication of Financial Reports and of Prospectuses for the year 2010 to 2011 until the first PSI, in relation to the amount of their investment in Greek Government Bonds and the risks of this investment during the period where GGB were going under continuous downgrades.
2. Whether the companies Cyprus Popular Bank Public Co Ltd and Bank of Cyprus Public Co Ltd implemented the Principles of Corporate Governance Code of the Cyprus Stock Exchange (CSE), that declared in their Financial Reports and Prospectuses that were adopted during the years 2010 and 2011.

Having considered all the evidence, the Commission has concluded violations made by the Cyprus Popular Bank Public Co Ltd and Bank of Cyprus Public Co Ltd:

•  relating to the actions of persons possessing inside information and the Market Abuse Law (“N.116 (I) / 2005”),
•  transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market Law (“L.190 (I) / 2007”),
•  providing for the conditions for making an offer to the public of securities, on the prospectus to be published when securities are offered to the public Law (“the N.114 (I) / 2005 ‘),

And, therefore, proceeded with the above-mentioned administrative penalties. In any case, the Commission has taken into account various factors for determining the amount of the administrative penalty.

 

Source: CySec

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