SEC sends FCB IPO to DPP

“The SE C completed an internal investigation some time ago and is now awaiting the DPP’s written advice which is expected shortly,” Mendes told Newsday when asked for a status update on the probe.

Mendes was appointed SE C chairman in April.

The SE C is understood to have exercised its powers under Section 168 of the Securities Act which empowers the regulator to refer matters to the DPP. The DPP has remit over criminal prosecutions and provides legal advice in relation to probes done by investigatory authorities.

According to a legal notice, in 2014 British barrister Peter Knox QC was admitted to the Bar locally for the purpose of, “an investigation pursuant to the Securities Act, 2012 by the Trinidad and Tobago Securities and Exchange Commission into suspected violations of the Securities Act, 2012 with respect to the purchase and trading of First Citizens Bank Limited Shares by Hassan Phillip Rahaman”.

The FCB IPO was marred by reports that some bank officials may have used their access and employee discounts to purchase and then sell shares at a profit. Rahaman was the FCB group chief risk officer.

The matter was referred to the Ministry of Finance, the SE C and the Office of the DPP for action in 2014.

An independent senator whose firm was tied to the IPO resigned, and the FCB board changed.

Mendes’s statement is the first indication that the SE C has referred the matter to the Office of the DPP, which does not conduct investigations but provides advice.

After the initial reports in 2013, subsequent reports emerged in relation to further share transactions.

In 2014, the Parliament passed a substantially watered-down revamp of securities law drawn up after a bi-partisian committee process and after the State consulted the financial entities the law is meant to police.