Elimination of the Supervision, and Responsibility Thereof, of the Hellenic Securities Commission Related to Investment Firms

Elimination of the supervision, and responsibility thereof, of the Hellenic Securities Commission related to Investment firms, deriving from portfolio management contracts (Council of the State No 1607/2016)

The supervised obligation of the Securities Commission consists on the one hand of anything that is officially delivered to them or is able to be officially confirmed by documents and/or data and on the other hand consists of the tracking of any credible information/ denunciation and rumors regarding the company under supervision. When illegal and ‘unseen’ activity occurs, the Commission is not obligated to take action as long as this activity cannot be proved by official documents. An omission of supervision cannot be evidenced as it is described in articles 105 and 106 of the I.C. code (civil public responsibility). In view of article 4 par. 5 of the Constitution and of the specific nature of State’s supervision of investment firms, articles 105 and 106 of the I.C code as they have been interpreted and applied so far, do not apply to the above mentioned State’s supervision. In order for these law provisions to be proportionally applied, additional conditions must be fulfilled. It should be noted that compensation by the state is not required to be full but of a reasonable amount.