MAKE The Liar

Ordinance 65 disappeared from the category "Penalty Ordinances" of the CNVM website and was filed as "NEWS."

Yesterday.

Yesterday morning, I wanted to show a journalist the evidence upon which I had based my opinion, published in BURSA, that CNVM was fooling us on purpose by claiming that the decision to suspend SSIF Broker - Cluj was not a penalty, but a precautionary measure.

I explained yesterday that the Ordinance had been published on the CNVM website in the category "Penalty Ordinances." But, just as I was about to display the evidence in triumph, I froze: the Ordinance had disappeared from that category!

What a laugh I had! CNVM had just tricked me! The story deserved an article headlined "MAKE The Liar."

I"m writing it.

That"s just what I"m doing.

I searched Google and Yahoo archives, but either I was out of luck or I just didn"t know how to do it properly. I couldn"t find the evidence that CNVM had made the change.

Yes, in the eyes of the public, I cannot use anymore this evidence that CNVM Ordinance 65 is a penalty.

The trick employed by CNVM will only matter in the relationship between me and the commissioners - how I will regard them from now on, what I will allow myself to presume about the character of the Commission as an entity and the character of the commissioners as people.

After all, this is not the issue. The issue is whether Ordinance 65 is a penalty or not.

For that - ha, ha! - we don"t need evidence from the CNVM website.

It is enough to read Article 17 (Precautionary Measures and Penalties) of the CNVM Bylaws:

"(1) CNVM can impose - in well justified cases and for a definite period of time - upon regulated entities, issuers or any entities whose business is related to the regulated markets, precautionary measures or the limitation of certain rights. Such measures can include the freeze of bank accounts, the limitation of asset transfers to/from the issuers or the freeze of transfers of securities or other financial instruments for a period of time of up to two weeks. (2) In case of violations of the laws regulating capital markets, commodities and derivatives markets and mutual funds, CNVM can notify criminal prosecution authorities in the event that the deed is a crime by law, or the application of the following regulatory penalties::

a) written warning;

b) fines

c) license suspension

d) license revocation

e) license termination"

(CNVM Bylaws, Art. 17)

Noteworthy is that "license suspension" is not listed under "precautionary measures," but under "penalties." This means that the publication of Ordinance 65 (suspending the license of SSIF Broker - Cluj) on the CNVM website under "Penalty Ordinances" was in fact compliant with the CNVM Bylaws.

Now, the removal of the document from that category contradicts the CNVM Bylaws.

Ha, ha!

But is it something to laugh at?...

P.S. I expect that today, after the publication of this article in BURSA, Article 17 should disappear from the CNVM Bylaws.