The Securities Market Commission (CMVM) is investigating infringements around the actions of SAD do Benfica. At issue, they are suspected of “information abuse”.
The Portuguese Securities Market Commission (CMVM) is investigating infringements in the disclosure of information to the market and abuse of information related to Benfica SAD, within the scope of the arrest of Luís Filipe Vieira, announced the supervisor.
“The events of the last few weeks show violations that could endanger the integrity of the functioning of the capital market and the protection of investors, particularly in the information dissemination to the market and from abuse of information, which will continue to be investigated”, highlighted in a statement to the CMVM.
The “police” of the Portuguese stock exchange ensured that will continue to “follow the evolution any aspect that may result in the need to provide additional information to the market”, with the aim of ensuring the integrity of the functioning of the capital market, in defense of investors.
“After signs of various irregularities became public knowledge, which could affect Sport Lisboa e Benfica – Futebol SAD (Benfica SAD), impact its corporate governance and create opacity in the composition of its shareholder structure, the CMVM ensured that the interested parties ensure the availability to the market of all relevant information that they were aware of, with a view to guaranteeing minimum conditions for the negotiability of the securities”, he stressed.
He added: “Qualified holding press releases were subsequently released, reflecting the information available on the nature and extent of relations between shareholders, and between these and third parties, as well as privileged information releases, based on the issuer’s judgment on the relevance of the information to make available to investors”.
The CMVM stressed that these events emerged after the approval of a prospectus referring to a public offer for subscription of SAD bonds incarnate, which aims to raise up to 35 million euros, currently in progress, and that, “by virtue of them, the content did not comply with the applicable information quality requirements” in Portugal.
Thus, “after having minimally stabilized the immediate implications of the aforementioned indications, an addendum to the prospectus was approved by the CMVM, which reflects the information available at the time”, he specified.
The entity stressed that its intervention, with the approval of an addendum, “is based on a judgment of verification of the requirements of completeness, veracity, timeliness, clarity, objectivity and legality of the information that the issuer must make available to investors, in light of the information available, without, however, implying an assessment of the issuer’s economic or financial situation or the feasibility of the offer”.
Therefore, he stressed, “investors should consider properly, given the information contained in the prospectus and the addendum, the investment opportunity offered, as well as its willingness to support, in an adverse scenario, the risks inherent in this offer, as, moreover, in any other investment”.
At the same time, the supervisor noted that “the definition of the shareholder structure of a company issuing securities admitted to trading on the market, as well as the specific composition of its governing bodies, is not dependent on any prior act of an authorizing nature”.
Therefore, “it is incumbent upon investors, and, in particular, the current shareholders of Benfica SAD, promote evaluation and corporate acts which they deem convenient due to the information that must be made available in full by the issuer at any given time”.
Luís Filipe Vieira was one of the four arrested in an investigation involving deals and financing in excess of 100 million euros, with losses for the State, the club’s SAD and Novo Banco.
The now former president of Benfica is under house arrest until the provision of a bond of three million euros and is prohibited from leaving the country, in addition to being indicted for breach of trust, qualified fraud, forgery of documents, money laundering, fraud tax and information abuse.
According to the Public Ministry, the businessman caused damages to Novo Banco of at least 45.6 million euros, offset by the Resolution Fund.
In the same process, known as Cartão Vermelho, his son Tiago Vieira, football agent and lawyer Bruno Macedo and businessman José António dos Santos were arrested for fraud, document falsification, money laundering. and tax fraud.