This new statement follows on an earlier case where VZMD, the Pan-Slovenian Shareholders Association, opposed pressure on its 'Share SUPPORT' programme by a brokerage industry player, harming the minority, individual shareholders it aims to represent.
Today, VZMD pointed to further shortcomings and misleading claims made by the ATVP (The Slovenian Securities Market Agency) against its organisation, claiming that such persecution is directed at "destroying its civil society association of minority shareholders". In parallel, VZMD's efforts to denounce the pressure and professional misconduct of a brokerage company in Slovenia have largely been ignored by the competent authority, which VZMD accuses of direct negligence in return.
In its statement, VZMD “insists that ATVP establishes procedures and policies for the equal treatment of all parties in the securities market instead of continuing a scandalous double standard policy”. The ATVP is accused of “actively preventing VZMD from opening a fiduciary securities account, and is even publicly 'warning' against the operation of VZMD while keeping quiet about the actually questionable actions of their 'favourite' financial intermediaries". Therefore, VZMD objects to the "inadmissible allegations (prior to the conclusion of any proceedings) that it provides services requiring ATVP authorisation." Moreover, the association deems the use of the law as inappropriate in this attempt to accuse it of overcharging its services via its 'Share Support' programme.
VZMD also wonder whether these "unfounded accusations by the regulator" were not initially prompted by the financial industry, while in contrast, it has provided evidence to protect investors from the lack of oversight of brokerage firms that avoid being accused of harmful practices themselves. VZMD also points to the fact that the ATVP has advocated for adverse amendments to the 'Market in Financial Instruments Act', seemingly targeting the minority shareholder association. Ultimately, VZMD claims its right to act and protect individual shareholders, as well as a better use of the national regulator's resources which should be directed towards fighting misconduct by the industry.
VZMD has summarised seven industry cases of “alleged ignorance” of the ATVP, and also specifies the pressures it faces in a statement.
• Read The VZMD Press Release in full here.