The new audit super-management of the Hellenic Capital Market Commission

By Leonidas Stergiou

The green light from the institutions has received the draft law for the modernization of the Hellenic Capital Market Commission, which is in consultation with the institutions until January 11th. Then, the Ministry of Finance will proceed to its vote by the Parliament.

The draft law adapts the internal operation of the Greek Capital Market Commission to the standards of the European capital markets committees, with the aim of regaining credibility and efficiency, following the Folli Follie case.

A key change is the establishment of an Evaluation Directorate, within the Hellenic Capital Market Commission, which is responsible for evaluating the cases handled by the directorates or units of the Hellenic Capital Market Commission, when the process of imposing sanctions for violations of the capital market legislation has begun. Respectively, the cases for which a process of revocation of the operating license of supervised bodies has been initiated, according to the legislation, are also submitted to the Evaluation Directorate.

According to the bill, the Evaluation Directorate investigates the results and findings of the audit suggestions and initiates a process of imposing sanctions submitted to it by the competent directorates, for the detection of violations of the capital market legislation and reports to the Board of Directors. The Evaluation Department recommends to the Board of Directors the imposition of sanctions or administrative measures, in case of violation of the legislation on the capital market. Otherwise, the Management submits a suggestion for archiving the case, due to non-evidence of violation. The procedures for the cases of revocation of the license of a supervised body are similar, after the latter is informed about the beginning of the audit and is summoned to a hearing.

Also, in the context of the evaluation of the examined case, the Evaluation Directorate may request from the respective competent directorate additional data or information or further control of the case.

Three-year strategic plan and goal setting

Another innovation is the preparation of a Strategic Plan, which defines the long-term strategic direction of the Hellenic Capital Market Commission, its strategic goals, mission and core values. The Strategic Plan is prepared on a five-year basis and may be revised by the Governing Board, which should publish it on the Commission’s website.

At the same time, the board of directors will prepare the Annual Business Plan with the action plans and the individual business plans of the Hellenic Capital Market Commission. The Annual Business Plan divides the strategic objectives of the Hellenic Capital Market Commission into annual objectives, actions and projects, describes the milestones and critical success factors and analyzes the way in which the Strategic Plan is implemented during the year. The Annual Business Plan also defines the qualitative or quantitative objectives of the services of the Hellenic Capital Market Commission, as well as the obligations, actions and projects to be implemented, in accordance with the Strategic Plan. The Annual Business Plan is published through the website of the Hellenic Capital Market Commission.

The new Rules of Procedure, the Strategic Plan and the Annual Business Plan must be completed and submitted in the form of a presidential decree to the Ministry of Finance within 12 months of the adoption of the new law.