petition 172j - certificación superintendencia de valores

8/14/2019 Petition 172j - Certificacin superintendencia de valores

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Case 3:07-cv-02590-PJH Document 68-7 F led 04/13/2009 Page 10 of 33

ONRADUCC]

CERTIFICACION SUPE RINTENDENCIA

DE VALORES - TITUl loS CLIENTES

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(6 AVttfflS" ge11 of 33ase 3:07-cv-02590-PJH Document 6

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OFFICIAL TRANSLATION NUMBER 10J0-2003

OF A DOCUMENT WRITTEN IN SPANISH THAT READS A S

FOLLOWS -

REPUBLIC OF COLOMBIA

BANKING SUPERINTENDENT

BOGOTA, DC

LEGAL REPRESENTATIVE

STOCK EXCHANGE DEALER

AVEN1DA4 NNO 4n-30

SANTIAGO DE CAL1, VALLE

SUBJECT

083001

331 INFORMATIVE CORRESPONDENCE

16 COLLECTIVE COMPLETION

Dear Mr^^^^^H

In relation to the communications we received with the numbers

stated above, in which you ask for a certification to be sent to Ofac

and Sterling Financial Bank certifying that the securities currently in

escrow at the mentioned bank on the name of

Comisionista de Bolsa are not owned by such stock exchange dealer,

but are property of some of its clients with whom they have signed a

portfolio management agreement. In relation to that and also before

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All redactions made pursuant to exem ptions(b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

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Case 3:07-cv-02590-PJH Document 68-7 Filed 04/13/2009 Page 12 of 33

Redaction made pursuant toexemptions (b)(6), (b)(7)(A), (b)(7)(C),(b)(7)(F)

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answering your request, we believe i t is important to consider the

following issues.

First of all, in accordance with article 7, law 45 of 1990, the stock

exchange firms, members of the stock exchange have as exclusive

corporate purpose the development of brokerage agreement for

securit ies purchase and sale, being able to pursue the activit ie s

mentioned below, with previous authorization by the Banking

Superintendent, in compliance with the requirements established for

each particular case:

- To intervene in the securit ies underwriting to guarantee the total o

5 ~ part of the same, or to purchase such securities on its own account.

r | - Carry out transaction s on i ts own account with the purpose o

giving more stability to the prices of the market, diminish th

margins between the bid and asked prices of the same and in genera

to give liquidity to the market

- Assign loan with i ts own resources to finance securit ies purchase.

Carry on purchase-sale securit ies operations with the possibil i ty o

re-purchase .

- Administer security portfolios of clients with the purpose to carr

out capital return collection and reinvest i t according to the client '

ins t ruct ions .

- Administer portfolios of third parties.

- Consti tute and administer security funds with no legal enti ty.

- Furnish assistance in activit ies related to capital market

Other points similar to those mentioned above authorized by th

Banking Superintendent, to motivate the development of the capita

market.

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nin rinii/ia /on nn ifogR 13 of 33Case 3:07-cv-02590-PJH Document 6 rA -14162669Due to tne suDject in question, next we will mention in detail the

aspects related to securities administration.

In accordance with article 2.2.7.2 of resolution 400 year 1990, issued

by the Banking Superintendent, the stock exchange dealers are

authorized to:

a- Collect the returns or any other financial benefit from the

securit ies administered.

b - Collect the capital

c- Under write prefera bly the securities that correspond to a new

emission and

Id- Appraise the securities according to market prices

I Article 17, law 27 of 1990, assigns to the stock exchange dealer Firms

Ithe obligation to deposit the securities they receive in accordance to

Ithe sec uritie s adm inistration agreemen t in a centralized secu rities

[deposit. Such disposition is mandatory

n the other hand, resolution 1530 of 1993, issued by the Banking

Sup erinten dent ad opts the regulation "Plan Unico de Cue ntas", (PUCin Spanish) for firms subject to inspection by the Banking

Superintendent that has been modified by external bulletin

publications 018 of 1994, 018 of 1995, 9, 10, and 17 of 1998, 12 of

2001 and 5 of 200 2. Such resolution esta blishe s that the stock de aler

firms must keep the books for each one of the activities or business

that require administration of third parties resources , including the

commission agreement and securit ies administration, that implies the

obligation to produce financial statements for each one of such

activities , without prejudice of the partnership. This with the

purpose to define a rigorous equity and accounting separation of

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Tcdos lasdcrechos 32

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Redaction made on this page pursuantto exemptions (b)(6), (b)(7)(A), (b)(7)(C),(b)(7)(F)

surveillance and property of the clients or investors temporary unde

their responsibility for the development of the so calle

"administration business"

As stock broker members of the stock exchange, the commissio

agreements for securities purchase and sale and the one for securitie

administration implies the activity of "business administration", an

as a result, the financial resources (money and securities) received b

a stock broker firm to develop such agreements shall be handle

independently of its own resources as the other activities that fa

within the concept of-business administration".

' = 2 Now, for the administration of the securities by the stock broke

firms, in the PUC , under class 7 structure called "trust memorandu

accounts" , the following was taken into account' "memorandu

accounts- receivable- administration expenses" , code 78140; an

"memorandum accounts-receivable- securities and clients foreig

currency for sale or retirement", code 78150, accounts in which

recognized the following.

- Code 78140, the nominal value of the securities received by th

stock broker firms for its administration with the sole purpose of i

custody, returns and dividend collection or capital collection

maturity term and

- Code 78150, the nominal value of received investment security

and foreign currency through the legally established firm that hav

not yet been placed and the securities and foreign currency receive

for sale or retirement, according to the case, even if those securitie

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Case 3:07-cv-02590-PJH Document 6 \-f fil ed 04/13/2009 ^^Riage 15 of 33C A - 1 4 1 6 2 6 7 1

Acco rding to numeral 1 of external bulletin 12 of 1994, issued by

the Banking Superintendent , the firms subject to supervision must

inform by modem to such Bank ing Superinten dent its financial

statem ent, that is to say its the balance sheet and general res ults of

such firms, and also the financial statement of each one of the

busin ess or activ ities that include permanent or provisional

adm inistratio n of resour ces or securities of its clients and investors .

In the same manner, numeral 2.3 of the mentioned external bulletin

12 esta blish es the obligation to redeem each month relations that

breakdown , among other accounts of PUC for supervised firms,

"clients fee agreements", and "stock brokers fee agreements"

In acco rdan ce with the monthly financial statem ents sent via modem

corresponding to the periods October 2002 to march2003, it appears

I that sto ck broker firm ^ ^ ^ U | ^ ^ | C om isionista de Bolsa

informed the balance of the accou nts above mentioned for the

months indicated below:

PAT E CLOSING MNTH CODE 78140 CODE 78140

October 31 2002

November 30 2002

December 31 2002

January 31 2003

SFebruary 28 2003

March 31 2003

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$120,225,210,785

$28,494,177,692

$17,474,219,828

$19,198 875. 515

SI.667.984.384

$51,598,530

$12,865,704

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formam i n e r v a S ' i^K-nr^HK> DlH flid jy actiulluda legiin U UiyD M I ' B f i S

All redactions made on this page pursuant toexemptions (b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

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Furthermore , dur ing an inspection visit b~y tfie Bankin

Super intendent in September 8- 12 year 2003 to the firm

Comisionis ta de Bolsa it was evident that such firm carries it

Financial books in compliance with the regula t ions in force that wer

mentioned above

During the inspection it was observed that on the "Secur i t ie

administration official book" of the stock broker firm

appear individually registered the securit ies that each clier

gave for its administration and tha t are in custody at a bank abroac

These are the secur i t ies

AT&T CANADA1CLTENT CUSTODY D A T

i = RECEIVED

CUSTODY DAT

CUSTODY -DAT

AMOUNT

ID

| 1 - AMOUNT ^ H

CLIENT Inst De Religiosas de San Jose ID

DATE RECEIVED | ^ ^ ^ | AMOUNTJ

TOTAL

BTMM

CLIENT | | ^ | ^ ^ ^ | ^ ^ t r e p o ID

RECEIVED 18-11 -2002- AMOUNT

CLIENT ^ m | ^ ^ m ^ ^ ID

RECEIVED 18-11-2002 AMOUNT

- QTA-L

CUSTODY DAT:;

CUSTODY

=7

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fill

111

61

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CUSTODY 12828-1 DAI

CUSTODY )AT1

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Case 3:07-cv-02590-PJH Pi-r-im-nffl 7 Filnfl "1'1P"" P py i T ^f i i

CA-14162672

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YANKEE BONDS

CLIENT: { ^ B A ID: ^ H H i CUSTODY: j

RECEIVED- 17-09-2002 A M O U N T ^ i H

CLIENT: ^ 1 A ID: H ^ - CUSTODY: j

RECEIVED: 20-07-2002. AMOUNT: B

CLIENT: H ^ H i ^ H B . ID: flB- CUSTODY: |

RECEIVED : 26-06.2002. AMOUNT:

CLIENT: H H ^ ^ H i ^ H ID: H B CUSTODY. |

RECEIVED. 26-06.2002. AMOUNT:^ B

I CLIENT: - H H H ^ H I ^ H ID: ^ ^ ^ | . CUSTODY:I DATE RECEIVED: 14-06-2001 AMOUNT: ~~

| CLIENT: H ^ ^ g j ^ ^ m ^ . ID:

[RECEIVED: 18-04-2001. AM OU NT :>

I CLIENT: | ^ m . ID:

RECEIVED: 04-6-2002. AMOUNT: |

C L I E N T ^ ^ ^ m ^ m ^ g S. ID: I

RECEIVED: 14-06-2001. AM OU NT |

C L 1 E > 1 T :f l H H H H H ^ HI D 'RECEIVED: 11-05-2001. AMOUNT:|

TOTAL: I

DATE

DATE

DATE

DATE

DATEUSTODY:

CUSTODY: DATE

CUSTODY: DATE.o

I CUSTODY: DATE

On the day of the visit there was a notification sent by AT&T with

date march 26 2003 informing its clients bond holders and other

creditors affected , the amount of money and shares class A (ATTC)

and B (ATTCZ), that the company will distr ibute as of April l" , of

the present year to the bond holders and other affected creditors as

part nf fhfi rpsrti ift nppraf inn rf thf nnnipany

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Case 3:07-nv-n?5fln-P.IH Document 68-7 Filfiri 04/13/?003 Pane 18 of 33All redactions made on this page pursuant to exemptions(b)(6), (b)(7)(A), (b)(7)(C), (b)(7)(F)

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In agreement with the records of the stock broker company

^ ^ ^ ^ ^ ^ ^ ^ ^ H and oth er docum ents stu died, next we will present

the detail of the amount of bonds AT&T owned by each client and

the amount in money and shares class A and B that corresponds to

each one in the rescue operation process

AT&T CANADA

CLIENT-

It was possible to verify that the securities mentioned aboveare

registered in the general balance and the subsidiary ledgers on the

name of the beneficiaries in memorandum accounts as securities

under administration, code 78140, securitieson clients accounts.

I f is here, r p i t p r a t p r l t h a t in rni\e 7K14D thp n n m i n a l v a l n f t n f the-.

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ge 19 of 33ase 3:07-cv-02590-PJH Document i iiea U4/'i JIZUUU i-CA -14162673

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secu rities receiv ed app ear s received by the stock broker firms to be

adm inistere d with the sole purpose of its custody, yield and dividend

collection or capital collection at maturity

During the visit to the stock broker firm premises, the Banking

Superintendent was able to verify that the securities that are under

custody at a foreign b ank called Sterlin g Financia l, do not belong to

th e s to ck b ro ke r f i m i ^ ^ ^ ^ J ^ ^ ^ ^ J C o m i s i o n i s t a de B ols a , but to

its clients the same clien ts that appea r stated on the lists above and

I th at w e re r ec ei ve d b v ^ | B H ^ ^ ^ ^ ^ | in c om p lia nc e w ith pr ev io us

[securit ies administration agreements with such clients

iTh is official d ocum ent is not a certifica tion as its con tents do not

correspond to any of the certification capacities assigned to the

|Ba nki ng Supe rintenden t as stated on the corresponding regulations

in force.

Sincerely

Signed:

Head of Securit ies Stock Exchange Division ,

Securit ies Agents and other supervised bodies

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f ************** ***********************ILEGIS

TOIIDS IOSderechos

iHeserv.Tdoij

* * * * * $ * * * * * * * * * * * * *K * +

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All redactions made on this pagepursuant to exem ptions (b)(6), (b)(7)(A),(b)(7)(C), (b)(7)(F)

THIS IS AN OFFICIAL T R A N S L AT T U J T H ^ T S T T H F U L AND)

COMPLETE OF WHICH REMAINS A COPY FOR IT:

CONFRONTATION IF NECESSARY

DATE OF THE TRANSLATION: OCTOBER 2003

OFFICIAL TRANSLATOR:

MEMBER OF THE COLOMBIAN SCHOOL OF TRANSLATORS

LICENSE ^ ^ B l S S U E D BY THE COLOMBIAN MINISTRY O

JUSTICE. REGISTERED BEFORE THE COLOMBIA?

MINISTRY OF FOREIGN AFFA IRS, THE EMBASSY OF TH

UNITED STATES IN COLOMBIA, THE EMBASSY O

CANADA, THE CONSULATES OF SWITZERLAND, BELGIUM

FRANCE, GREAT BRITAIN IN CALL

BEFORE THE GOVERNOR OF VALLE DEL CAUCA

REGISTRATION: PAGE 159, BOOK C-200-3 , DATE MRCHT

1990

BEFORE THE ELEVENTH NOTARY PUBLIC IN CAL

REGISTRATION: 1794, DATE: MARCH 28, 1990

SIGNATURE AND SEAL OF THE OFFICIAL TRANSLATOR:

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ESTA ES UNA TRADUCCION OFICIAL FIEL Y COMPLETE

DE LA CUAL QUEDA COPIA PARA SU CONFRONTACION S

FUERA NECESARIO

FECHA DE TRADUCCION: OCTUBRE DE 2003

TRADUCTORA OFICIAL:

MIEMBRO DEL COLEGIO COLOMBIANO DE TRADUCTORES

\. DE CLICENCIJUSTICIA

EXPEDIDA POR EL MINISTERIO DEOLOMBIA,

petition 172j - certificación superintendencia de valores

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