ANNUAL REPORT AND ACCOUNTS - CMVM - Homepage

SISTEMA DE INDEMNIZAÇÃO AOS INVESTIDORES

ANNUAL REPORT AND ACCOUNTS

31 December 2002


INDEX Report

1. Composition of the Board and Executive Committee and the Supervisory Committee

2. Activity in 2002

2.1. Participants 2.2. Capacity to pay compensation 2.3. Pledged securities 2.4. Financial Statements 2.5. Own income

2.5.1. Current income 2.5.2. Fines imposed

2.6. Activation of the Scheme and payment of compensation 2.7. Memoranda of Understanding with schemes in other countries

3. Prospects

Financial Statements on 31 December 2002

• Balance Sheet • Profit and Loss Account • Annex to Balance Sheet and Profit and Loss Account

Schedule I – Statement of Financial Results Schedule II – Statement of Extraordinary Results

• Statement of Source and Application of Funds • Statement of Circulating Funds • Cash Flow Statement

Statement of Opinion of the Supervisory Committee

• Report


1. Composition of the Board and Executive Committee and the

Supervisory Committee

BOARD AND EXECUTIVE COMMITTEE

CHAIRMAN Luís Lopes Laranjo

Appointed by the Board of the CMVM (Article 15(2) of Decree-Law n.º 222/99, of 22 June)

MEMBERS Herlânder dos Santos Estrela

Appointed by the Board of Banco de Portugal (Article 15(3) of Decree-Law n.º 222/99, of 22 June)

João Luís Correia Duque

Appointed by the Portuguese Minister of Finance (Article 15(3) of Decree-Law n.º 222/99, of 22 June)

SUPERVISORY COMMITTEE

CHAIRPERSON Maria Irene Brás Gonçalves Rodrigues de Carvalho

(Appointed by order of the Minister for State and for Finance, of 07 November 2002)

MEMBERS Maria de São José Lopes Ferreira Lino Vaz de Carvalho

(Appointed by order of the Minister for State and for Finance, of 13 December 2002)

Sociedade de Revisores Oficiais de Contas Amável Calhau, Justino Romão & J. M. Ribeiro da Cunha – represented by Amável Alberto Freixo Calhau (Appointed in observance of the provisions of Article 21 of Decree-Law n.º 222/99, of 22 June)


2. Activity in 2002 In 2002, apart from current management, the activities of the Sistema de Indemnização aos Investidores (Scheme) were concentrated on the implementation of mechanisms for validating half-yearly information disclosed by participants, and on the establishment of contacts with a view to entering into memoranda of understanding with counterpart schemes in other Member States of the European Union. 2.1. Participants On 31 December 2002, there were 81 companies participating in the Scheme. During 2002, seven new entities joined the Scheme, and ten ceased to participate due to the winding up of their activities, merger with another participant or alteration of company objects. At the end of the year, the participants in the Scheme and the respective date on which they joined were as follows:

Participant Joined Participant Joined(continued)

AF Investimentos - Gestão de Patrimónios, SA 31-01-2000 ESAF - Espirito Santo Gestão de Patrimónios, SA 31-01-2000Banco ActivoBank (Portugal), S.A. 31-01-2000 Espírito Santo Dealer - Soc. Financ. Corretagem,SA 31-01-2000Banco Alves Ribeiro, SA 31-01-2000 Espírito Santo Financial Consultants (Gestão de Patrimónios),SA 31-01-2000Banco Bilbao Vizcaya Argentaria (Portugal), SA 31-01-2000 Finanser - Sociedade Financeira de Corretagem, SA 31-01-2000Banco Comercial dos Açores, SA 31-01-2000 Fincor - Sociedade Corretora, SA 31-01-2000Banco Comercial Português, SA 31-01-2000 Finipatrimónio - Soc. Gestora de Patrimónios, SA 31-01-2000Banco de Investimento Global, SA 31-01-2000 IBCO - Gestão de Patrimónios, SA 31-01-2000Banco do Brasil, SA 31-01-2000 Investimento Directo - Sociedade Financeira Corretagem, SA 31-01-2000Banco Efisa, SA 31-01-2000 Lisbon Brokers - Sociedade Corretora, S.A. 31-01-2000Banco Espírito Santo de Investimento, SA 31-01-2000 LJ Carregosa - Sociedade Financeira de Corretagem, SA 31-01-2000Banco Espírito Santo, SA 31-01-2000 MG Patrimónios - Soc. Gestora de Patrimónios, SA 31-01-2000Banco Expresso Atlântico, SA 31-01-2000 My Portfólio-Sociedade Gestora de Patrimónios,SA 31-01-2000Banco Finantia, SA 31-01-2000 NCO - Gestão de Patrimónios, SA 31-01-2000Banco Internacional Crédito, SA 31-01-2000 NCO Dealer - Soc. Financeira Corretagem, SA 31-01-2000Banco Itaú Europa, SA 31-01-2000 Personal Value - Sociedade Gestora de Patrimónios, SA 31-01-2000Banco Nacional de Crédito Imobiliário, SA 31-01-2000 Probolsa - Sociedade Corretora, SA 31-01-2000Banco Português de Investimento, SA 31-01-2000 Santander Gest - Soc. Gestora de Patrimónios, SA 31-01-2000Banco Português de Negócios, SA 31-01-2000 Siemca - Sociedade Mediadora de Capitais, SA 31-01-2000Banco Privado Português, SA 31-01-2000 Título - Sociedade Financeira de Corretagem, SA 31-01-2000Banco Santander de Negócios Portugal, SA 31-01-2000 Banco Madesant - Sociedade Unipessoal, S.A. 17-02-2000Banco Santander Portugal, SA 31-01-2000 Golden Assets - Soc. Gestora de Patrimónios, S.A. 07-04-2000Banco Totta & Açores, SA 31-01-2000 Pedro Arroja - Gestão de Patrimónios, S.A. 07-04-2000Banif - Banco de Investimento, S.A. 31-01-2000 DIF Broker - Sociedade Corretora, S.A. 01-06-2000BBVA Midas - Soc.Financ.de Corretagem, SA 31-01-2000 First Portuguese - Sociedade Gestora de Patrimónios, SA 13-07-2000BBVA Privanza- SGP, SA 31-01-2000 A.H.L.R. & Associados - Gestão de Patrimónios, SA 27-07-2000BCP Investimento - Banco Comercial Português de Investimento, SA 31-01-2000 Cotavalor - Sociedade Corretora, S.A. 09-08-2000BMF - Sociedade de Gestão de Patrimónios, SA 31-01-2000 Portfolio Managers - Sociedade Gestora de Patrimónios, S.A. 29-03-2001BNC Corretora - Sociedade Corretora, SA 31-01-2000 Banco Best - Banco Electrónico de Serviço Total, S.A. 11-06-2001BPN Gestão de Activos, SA 31-01-2000 Banco Português de Gestão, SA 26-07-2001BSN Dealer - Sociedade Financeira de Corretagem,SA 31-01-2000 Intervalores - Sociedade Corretora, SA 03-08-2001Caixa - Banco de Investimento, SA 31-01-2000 Finibanco, S.A. 23-08-2001Caixa Central de Crédito Agrícola Mútuo, Crl 31-01-2000 F&C Portugal - Gestão de Patrimónios, SA 22-11-2001Caixa Económica Montepio Geral 31-01-2000 Caixa - Gestão de Patrimónios, SA 06-12-2001Caixa Geral de Depósitos, SA 31-01-2000 Ok2Deal - Sociedade Corretora, S.A. 11-02-2002Carnegie Investimentos-Gestão de Patrimónios,SA 31-01-2000 Banif - Banco Internacional do Funchal, SA 01-04-2002Central - Banco de Investimento, SA 31-01-2000 Banco Espírito Santo dos Açores, S.A. 01-07-2002Central Investimentos - Sociedade Corretora, SA 31-01-2000 Luso Partners - Sociedade Corretora, S.A. 12-09-2002Companhia Geral de Crédito Predial Português, SA 31-01-2000 Luso Partners - Sociedade Gestora de Patrimónios, S.A. 21-11-2002Corretora Independente Portuguesa, CIP Brokers, SA 31-01-2000 Invest Quest - Sociedade Gestora de Patrimónios, S.A. 28-11-2002Deutsche Bank (Portugal), SA 31-01-2000 Banco BPI, SA 26-12-2002DB Corretora - Sociedade Corretora Valores Mobiliários, SA 31-01-2000

Table 1Participants on 31.12.2002


2.2. Capacity to pay Compensation The total value of assets secured by the Scheme on 31 December 2002 was approximately €59 billion, distributed among 81 participants. The Scheme’s maximum annual compensatory capacity, without having recourse to loans, was to the order of €115.1 million, which corresponds to an average capacity to pay compensation of 15.8% of the assets secured by the Scheme per participant, in the event of the Scheme being activated.

Description Amount

No. of participants 81Total value of assets secured by the Scheme € 59.020.212.138Mean value of assets secured by the Scheme, per participant € 728.644.594Maximum annual compensatory capacity without recourse to loans (*) € 115.148.651Average compensatory capacity in the event of activation of the Scheme 15,8%

(*) Calculation based on the average value of portfolios on 31.12.2001 and 30.06.2002, in accordance with Article 10 of CMVM Regulation n.º 2/2000.

Table 2Capacity on 31.12.2002 to pay compensation in case of activation of the Scheme

2.3. Pledged Securities By 31 December 2002, the total value of securities pledged by participants had risen to almost € 41.5 million, evaluated in accordance with the provisions of Article 8(7) of CMVM Regulation n.º 2/2000. All pledges were above the average (100%) of the fluctuation band established (92.5% - 107.5%) in the aforementioned Regulation.

Quantity Value (*)Description ISIN Code in Euro

OT October/2005 PTOTEIOE0007 1.072.732.621 11.224.001OTRV July/2004 PTOTVEOE0000 1.025.289.882 10.230.753OT February/2005 PTOTEROE0006 460.142.262 5.436.121OT August/2004 PTOTEDOE0002 454.645.288 4.602.374OT February/2006 PTOTEVOE0000 297.283.182 3.493.375OT August/2007 PTOTEXOE0016 202.800.000 2.086.650OT June/2008 PTOTEBOE0012 194.621.789 2.055.712OT July/2009 PTOTECOE0011 86.842.863 857.660OT February/2007 PTOTEFOE0000 66.525.330 734.599OT September/2013 PTOTEGOE0009 39.075.365 421.686Consolidated PTCON3OP0003 46.390.200 191.629OT January/2004 PTOTEOOE0009 13.767.042 146.151OT May/2010 PTOTEHOE0008 2.073.800 22.491Total 3.962.189.624 41.503.201

(*) Securities valued according to Article 8(7) of CMVM Regulation No. 2/2000. Taking into account the last closing price persecurity in 2002, the total value was €41.613.850.

Security

Table 3Securities pledged on 31.12.2002


2.4. Financial Statements During 2002, the Scheme’s operations generated a net positive result of €637.492, of which €613.842 represents operational results and €23.718 corresponds to the financial results. Within the Assets item of the Balance Sheet, the cash item is the most noteworthy, totalling €1.520.300. The Liabilities item represents insignificant amounts to be paid in 2003, related to tax and costs generated in 2002. 2.5. Own Income Under the terms of Article 17 of Decree-Law n.º 222/99, of 22 June, the Scheme’s own income originates from annual amounts transferred by the participants in order to finance the Scheme’s operational expenses (current income), and from fines imposed by the Comissão do Mercado de Valores Mobiliários or by Banco de Portugal.

2.5.1. Current Income The sum transferred by new participants which joined the Scheme during 2002, in order to finance the Scheme’s activities, was €8.125. The current income for 2002 was restricted to the said contributions of entities joining during the year, since the Board waived the payment of sums for the financing of operating expenses for 2002 by those participants which joined prior to 31 December 2001, taking into consideration the fact that the sums available for covering operating costs budgeted for 2002 were sufficient for these ends. For the same reason and under the same conditions, in November 2002 it was decided to proceed in the same way with regard to the payment of the amount necessary to meet operating expenses for 2003. 2.5.2. Fines Imposed In accordance with the provisions of Article 17 of Decree-Law no. 222/99, of 22 June, and of Article 406 of the Portuguese Securities Code, the product of fines, applied for violations of securities law, reverts to the Scheme. Own receipts for 2002, arising from fines imposed, came to a total of €650.000, which was fully paid up in 2002. Furthermore, during the year the amount accumulated with a debit balance of €43.645, corresponding to fines paid in court in previous years, was transferred to the Scheme.

2.6. Activation of the Scheme and payment of compensation The Scheme was not activated in 2002, therefore no compensation was paid.


2.7. Memoranda of understanding with foreign schemes Given that the provision of similar investment services in Member-States of the European Union other than the country of origin of the Scheme may, in the case of non-compliance by a participant, imply the intervention of the investor compensation schemes in the country of origin and the destination country, the Scheme, together with its foreign counterparts, endeavours to establish memoranda of understanding, with a view to increasing the efficiency of its functions in such situations. In light of this, contact was established with the Spanish scheme. 3. Future Prospects During 2003, the Scheme will continue to establish memoranda of understanding with other schemes working for the protection of investors from the member states of the European Union, with regard to investment companies and financial institutions authorised to conduct investment business in Portugal, and Portuguese investment firms and credit institutions having branches in other member states. In this context, the establishment of a memorandum with the Spanish scheme is expected, following the expression of interest by this entity, and the establishment of contact with other schemes is also planned. Apart from its day-to-day management, another of the Scheme’s central goals will be to implement procedures necessary for the transmission, via Extranet, of half-yearly information by participants. 4. Final Considerations The Board wishes to thank all entities which collaborated with the Scheme, particularly the Comissão do Mercado de Valores Mobiliários, Banco de Portugal and the Scheme’s participants. Lisbon, 31 January 2003 The Board Luís Lopes Laranjo - Chairman Herlânder dos Santos Estrela - Member João Luís Correia Duque - Member


2002 Financial Statements


amounts in EuroACC. CODE

FINANCIAL YEARACC. CODE

FINANCIAL YEAR

2001 2002 2001

Gross Assets Prov. Accum. Amort. Net Assets Net Assets

Assets

268+221 Other debtors 9,87 9,87 58.035,24 59 Accumulated results brought forward 875.970,91 591.181,77

9,87 9,87 58.035,24 88 Net profit/loss for the year 637.492,08 284.789,14

Bank deposits and cash: 1.513.462,99 875.970,91

12+13+14 Bank deposits 1.520.300,33 1.520.300,33 788.870,05

1.520.300,33 1.520.300,33 788.870,05 Short-term creditors:221 State and other public bodies 749,69 1.751,56

Accruals and deferrals: 24 749,69 1.751,56271 Accrued profits 35.605,22

Accruals and deferrals:35.605,22 Accrued costs 6.097,52 4.788,04

273 6.097,52 4.788,04Total Amortisations

Total Amount of Provisions 6.847,21 6.539,60

Total Assets 1.520.310,20 1.520.310,20 882.510,51 1.520.310,20 882.510,51

Assistant Director of the Administrative and Financial Dept. - CMVM The Board

Luís Lopes Laranjo, Chairman

Ana Bela Alves

Herlânder dos Santos Estrela, Member

João Luís Correia Duque, Member

Total Equity

Total Liabilities

Total Own Capital and Liabilities

Equity and Liabilities

BALANCE SHEET

2002POCPOC

On 31 December 2002


amounts in Euro

ACC. CODE

POC

Profits and Losses

62 Supplies and external services 12.404,19 16.739,87Staff costs:

641+642 Wages and salaries 26.514,65 26.910,55 Social Security costs:

645/8 Others 5.364,20 31.878,85 5.472,67 32.383,22(A) 44.283,04 49.123,09

681+685/8 Interest and similar costs: Others 132,66 192,99

(C) 44.415,70 49.316,0869 Extraordinary costs and losses 67,85 5.486,81

(E) 44.483,55 54.802,8986 Tax on Profit/Loss

(G) 44.483,55 54.802,8988 Net Profit/Loss for the year 637.492,08 284.789,14

681.975,63 339.592,03

Income

72 Services rendered 8.125,01 8.125,01 6.468,30 6.468,30

73 Other profits 21,45

76 Other operating income 650.000,00 650.000,00 312.563,09 312.584,54(B) 658.125,01 319.052,84

7811/3/4/8+785/6/7/8 Other interest receivable and similar income: Others 23.850,61 23.850,61 17.795,79 17.795,79

(D) 681.975,62 336.848,6379 Extraordinary profits and income 0,01 2.743,40

(F) 681.975,63 339.592,03Operating results: (B) - (A) = 613.841,97 269.929,75Financial results: (D - B) - (C - A) = 23.717,95 17.602,80Ordinary results: (D) - (C) = 637.559,92 287.532,55Pre-tax results: (F) - (E) = 637.492,08 284.789,14Net profit or loss for the financial year: (F) - (G) = 637.492,08 284.789,14


Luís Lopes Laranjo, ChairmanAna Bela Alves



PROFIT AND LOSS ACCOUNT

FINANCIAL YEAR

2002 2001

On 31 December 2002


ANNEX TO BALANCE SHEET AND PROFIT AND LOSS ACCOUNT NOTE 40 Accumulated results brought forward demonstrate an increase of € 284.789,14 in 2002,

arising from the transfer of the Net Results for 2001.

NOTE 43 The members of the Corporate Bodies of the Sistema de Indemnização aos Investidores

(Scheme) were remunerated as follows:

The Board €20.949,46

The Supervisory Committee € 4.902,79

Apart from the aforementioned sums, €662,40 of the total of the Profit and Loss Account

corresponds to rights acquired in 2002 relating to holidays and holiday bonuses to be paid in

2003.

NOTE 44 Services rendered correspond to contributions made by participants towards the running

costs of the Scheme.

NOTE 45 See Schedule I.

NOTE 46 See Schedule II.

NOTE 48 Legal proceedings related to fines.

It is expected that the product of fines, not reflected in the accounts, shall revert to the

Scheme. These fines arise from administrative infraction proceedings initiated by the

Comissão do Mercado de Valores Mobiliários, with regard to which there was recourse to

the competent Courts, and the value of which is expected to reach €141.471,35.


Guarantees made to the Scheme

Under the terms of Article 6(2) of Decree-Law n.º 222/99, of 22 June and of Article 8 of

CMVM Regulation n.º 2/2000, participants must pledge securities integrated in a centralised

system as a guarantee of their irrevocable obligation, in the event of activation of the

Scheme, to provide the funds necessary for the payment of compensation owed to investors.

On 31 December 2002, the total value of the said pledges, evaluated in accordance with the

provisions of Article 8, sub-paragraphs 6 and 7 of the aforementioned Regulation, was

€41.503.201,37. The value per security of the said pledges, based on the last closing price

of 2002, was €41.613.849,79.

Assistant Director of the Administrative and The Board

Financial Dept. - CMVM

Ana Bela Alves Luís Lopes Laranjo - Chairman Herlânder dos Santos Estrela - Member João Luís Correia Duque - Member


NOTE 45

amounts in EuroFINANCIAL YEAR FINANCIAL YEAR

2002 2001 2002 2001

681. Interest and similar costs 5,99 781. Interest received 23.850,61 17.795,79688. Other financial costs and expenses 132,66 187,00

Financial Results 23.717,95 17.602,80

Total Costs and Expenses 23.850,61 17.795,79 Total Revenue 23.850,61 17.795,79





COSTS AND EXPENSES REVENUE

on 31 December 2002

SCHEDULE I

STATEMENT OF FINANCIAL RESULTS


NOTE 46

amounts in EuroFINANCIAL YEAR FINANCIAL YEAR

2002 2001 2002 2001 695. Fines and other penalties 57,86

697. Corrections related to previous years 9,99 5.486,81 797. Corrections related to other years 0,01 2.743,39

698. Other extraordinary costs and losses 0,02 798. Other extraordinary profits and earnings 0,01

Extraordinary Results -67,84 -2.743,43

Total Costs and Expenses 0,01 2.743,40 Total revenue 0,01 2.743,40

The Board




Assistant Director of the Administrative and Financial Dept. - CMVM

SCHEDULE II

COSTS AND LOSSES PROFITS AND EARNINGS

STATEMENT OF EXTRAORDINARY PROFIT AND LOSSon 31 December 2002


amounts in EuroFINANCIAL YEAR

Source of Funds

Internal: Net profit for the year 637.492,08 284.789,14

637.492,08 284.789,14637.492,08 284.789,14

Application of Funds

Increase in circulating funds 637.492,08 284.789,14637.492,08 284.789,14

Assistant Director of the Administrative and Financial Dept. The Board - CMVM

Ana Bela Alves Luís Lopes Laranjo, Chairman



STATEMENT OF SOURCE AND APPLICATION OF FUNDSPeriod from 1 January to 31 December 2002

20012002


amounts in EuroFINANCIAL YEAR

Increase in short term debtors Other debtors 0,00

Decrease in short-term debtors Suppliers c/c 0,00 0,00 466,87 State and other public bodies 1.001,87 1.001,87 0,00 466,87

Increase in available funds Bank deposits 731.430,28 731.430,28 344.095,76 344.095,76

Variation in accruals and deferrals Increase in accrued profits 0,00 34.734,30 34.734,30

732.432,15 379.296,93

Decrease in short-term debtors Other debtors 58.025,37 58.025,37 93.599,88 93.599,88

Increase in short-term debt Suppliers c/c 0,00 State and other public bodies 0,00 0,00 860,81 860,81

Variation in accruals and deferrals Increase in accrued costs 1.309,48 47,10 47,10 Decrease in accruals and profits 35.605,22 36.914,70

Increase in circulating funds 637.492,08 284.789,14 284.789,14732.432,15 379.296,93





20012002

STATEMENT OF CIRCULATING FUNDSPeriod from 1 January to 31 December 2002


amounts in Euro

OPERATIONAL ACTIVITIES:Receipts from diverse debtors 751.144,82Payments to suppliers 12.404,19Payments to staff 31.704,21

707.036,42 Payment / Receipt of Income Tax Other receipts / Payments related to activity -4,12 Flow generated before extraordinary operations 707.032,30

Receipts related to extraordinary operations 0,01Payments related to extraordinary operations 57,86

Current operations flow[1] 706.974,45

INVESTMENT ACTIVITIES:Receipts originating from: Interest and equivalent income 24.455,83

24.455,83 Flow generated by investment activities [2] 24.455,83

Cash fluctuations and equivalents [3]=[1]+[2] 731.430,28Effects of exchange rate disparity 0,00Cash and equivalents at the start of the period 788.870,05Cash and equivalents at the end of the period 1.520.300,33

The Board




Assistant Director of the Administrative and Financial Dept. - CMVM

Period from 1 January to 31 December 2002

Flow generated by operations

CASH FLOW STATEMENT

Supervisory Committee

REPORT AND STATEMENT OF OPINION OF THE SUPERVISORY COMMITTEE

1. In compliance with the relevant legal provisions and in exercise of the mandate which has been conferred upon us, we hereby issue this statement of opinion on the Annual Report and Management Accounts presented by the Board of the Sistema de Indemnização aos Investidores (SII) with regard to the year ending 31 December 2002.

2. We have been monitoring the activities of the SII, principally by means of regular

contact with the Chairman of its Board, by reading the minutes of meetings held and by analysing the documentation which was systematically submitted to us, in particular the monthly accounts. We asked the Board and Services for clarification whenever this proved necessary.

3. We have read the annual review drawn up by the member of this Committee acting in

the capacity of internal auditor. 4. We have examined the Report of the Board on the activities of the SII during 2002, in

particular with regard to its conformity with the accounts for the financial year in question, given that this document clearly demonstrates the performance of this entity.

5. We have examined the accounts (balance sheet, profit and loss account, annex to the

balance sheet and profit and loss account, statement of source and application of funds, statement of circulating funds and cash flow statement), and have concluded that the said documents are a true reflection of the assets of the SII on 31/12/2002, and of the means by which the results were achieved during the financial year which ended on the aforementioned date.

6. We wish to reiterate the full cooperation of the Board and Services, which contributed much to the carrying out of our supervisory functions.

OPINION 7. Considering the above, this Supervisory Committee is of the opinion that all conditions

necessary for the approval of the present Report and Management Accounts referring to the year 2002 have been fulfilled.

Lisbon, 18 February 2003

The Supervisory Committee,

Maria Irene Brás Gonçalves Rodrigues de Carvalho (Chairperson)

Maria de São José Lino Vaz de Carvalho (Member)

Amável Alberto Freixo Calhau, (Member, Official Auditor) (representing Sociedade de Revisores Oficiais de Contas Amável Calhau, Ribeiro da Cunha e Associados)

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