Forced Evictions Towards Solutions? Forced Evictions - Towards Solutions? First Report of the Advisory Group on Forced Evictions to the Executive Director of UN-HABITAT
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV" )LUVW 5HS
)LUVW 5HSRUW RI WKH $GYLVRU\ *URXS RQ
)RUFHG (YLFWLRQV WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
&RS\ULJKW ‹ $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)( 81 +$%,7$7 ([FHUSWV IURP WKH WH[W RI WKLV SXEOLFDWLRQ PD\ EH UHSURGXFHG ZLWKRXW DXWKRULVDWLRQ RQ FRQGLWLRQ WKDW WKH VRXUFH LV FOHDUO\ LQGLFDWHG
&RS\ULJKW ‹ RI DQ\ SKRWRJUDSK LQ WKLV SXEOLFDWLRQ YHVWV LQ WKH SKRWRJUDSKHU DQG PD\ QRW EH UHSURGXFHG ZLWKRXW SULRU DXWKRULVDWLRQ &RYHU SKRWRV FRXUWHV\ RI *X\ 7LOOLP &2+5( DQG ZZZ %DQJNRN FRP
$GYLVRU\ *URXS RI )RUFHG (YLFWLRQV $*)(
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ÀHFW WKH YLHZV RI WKH 8QLWHG 1DWLRQV +XPDQ 6HWWOHPHQWV 3URJUDPPH WKH *RYHUQLQJ &RXQFLO RI WKH 8QLWHG 1DWLRQV +XPDQ 6HWWOHPHQWV 3URJUDPPH RU LWV 0HPEHU 6WDWHV 7,7/( )RUFHG (YLFWLRQV ± 7RZDUGV 6ROXWLRQV" )LUVW 5HSRUW RI WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 +6 ( ,6%1
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
L
$&.12:/('*(0(176 7KLV SXEOLFDWLRQ LV WKH ¿UVW UHSRUW RI WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +DELWDW ,W KDV EHHQ SURGXFHG E\ $*)( ZLWK VXSSRUW IURP 81 +$%,7$7 DQG LQ SDUWLFXODU )DURXN 7HEEDO &KLHI RI 6KHOWHU %UDQFK DQG 6DQGUD %DIIRH %RQQLH $FWLQJ &RRUGLQDWRU RI WKH *OREDO &DPSDLJQ IRU 6HFXUH 7HQXUH 6HFUHWDULDW EDVHG LQ 1DLUREL .HQ\D &RPSLOLQJ WKH SXEOLFDWLRQ ZDV D WHDP HIIRUW DQG WKDQNV DQG FUHGLW DUH GXH WR PDQ\ SHRSOH :H ZLOO WU\ WR PHQWLRQ DOO RI WKHP EHORZ +RZHYHU LI DQ\RQH LV OHIW RXW ZH RIIHU RXU KXPEOH DSRORJLHV -HDQ GX 3OHVVLV ZDV UHVSRQVLEOH IRU RYHUDOO FRRUGLQDWLRQ HGLWLQJ DQG SURGXFWLRQ DQG ZURWH &KDSWHU DQG VHFWLRQV RI &KDSWHU <YHV &DEDQQHV WKH $*)( &RQYHQRU FRRUGLQDWHG WKH $*)( PLVVLRQV DQG WKHLU UHSRUWV VXPPDULVHG LQ &KDSWHU DQG ZURWH &KDSWHU $*)( PHPEHUV FRQWULEXWHG LQ D YDULHW\ RI ZD\V WR WKH FRQWHQWV RI WKLV UHSRUW DQG LQ SDUWLFXODU WR WKH FDVH VWXGLHV LQ &KDSWHU 7KHLU QDPHV DUH -RFNLQ $USXWKDP +HUPHV %LQQHU -RHO %ROQLFN 6RPVRRN %RRQ\DEDQFKD <YHV &DEDQQHV 2OLYLR 'XWUD 0DOLFN *D\H 6FRWW /HFNLH ,QJHU /LQGJUHQ +RVDND 0LWVXKLNR /HWLFLD 2VRULR &HVDUH 2WWROLQL &RXJODQ 3DWKHU *XLOOHUPR 5RGUt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³9LD $GGD PXVW QRW EH FDQFHOOHG´ ,WDOLDQ &DVHV /HDQGUR *RUVGRUI DQG $QVHOPR 6FKZHUWQHU &XULWLED *HQHYLHYH 'RPHQDFK &KLF 81(6&2 %HLMLQJ LQIRUPDWLRQ 3HGUR )UDQFR DQG GHOHJDWHV IURP WKH ³1DWLRQDO /DQG &RRUGLQDWLRQ´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tFLD 2VyULR 3DXOR 7HL[HLUD ,QrV 0DJDOKmHV UHSUHVHQWLQJ 0LQLVWHU 2OtYLR
LL
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
'XWUD 0LQLVWU\ RI WKH &LWLHV 3DWUtFLD &DUGRVR /HDQGUR *RUVGRUI DQG UHSUHVHQWDWLYHV RI WKH 0RYLPHQWR 1DFLRQDO GH /XWD SHOD 0RUDGL :H DUH JUDWHIXO WR QXPHURXV SKRWRJUDSKHUV LQ VRPH FDVHV HVWHHPHG SURIHVVLRQDOV DQG WKHLU RUJDQLVDWLRQV IRU SHUPLVVLRQ WR XVH WKHLU SKRWRJUDSKV DW QR FKDUJH 7KHLU QDPHV DUH JLYHQ LQ WKH UHSRUW :H DUH DOVR YHU\ JUDWHIXO WR 'RPLQL /HZLV IRU KHU WLUHOHVV HGLWRULDO DVVLVWDQFH DQG 0RQD .KHFKHQ IRU HGLWLQJ RI &KDSWHU -DQH +DUOH\ IRU GHVLJQ DQG OD\RXW (PLO\ :DOVK -HDQQH 0LIVXG %RQQLFL 0DOFRP *DU¿HOG .DUHQ 6REROHRVN\ .DUHQ .HQQDUG +LOGD *XHUUHUR IRU WUDQVODWLRQ DQG $QQ 0XJHQL DQG )UHGHULF %HHUQDHUWV RI 81 +$%,7$7 IRU VHFUHWDULDO DQG RWKHU VXSSRUW 7KH PRVW VSHFLDO WKDQNV LV GXH KRZHYHU WR DOO WKH FRPPXQLWLHV ZLWK ZKRP ZH ZRUN ZKR KDYH EHHQ SUHSDUHG WR VKDUH WKHLU SUREOHPV H[SHULHQFHV LGHDV DQG LQVLJKWV ZLWK XV 7KLV UHSRUW LV GHGLFDWHG WR WKHP DQG WKHLU RQJRLQJ VWUXJJOH WR UHDOLVH WKHLU EDVLF KXPDQ ULJKWV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
LLL
)520 7+( (;(&87,9( ',5(&725
:HOFRPLQJ DGGUHVV GHOLYHUHG E\ 0UV $QQD .DMXPXOR 7LEDLMXND ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 DW WKH LQDXJXUDO PHHWLQJ RI WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV 1DLUREL 0DUFK
'HDU )ULHQGV ,W LV P\ GLVWLQFW SOHDVXUH WR ZHOFRPH \RX WR 1DLUREL IRU WKLV LQDXJXUDO PHHWLQJ RI WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV , ZLVK ¿UVW RI DOO WR WKDQN \RX IRU DFFHSWLQJ WR MRLQ WKLV JURXS LQ DGGLWLRQ WR \RXU KHDY\ ZRUNORDGV WR FRQWULEXWH WR WKLV FKDOOHQJLQJ PLVVLRQ , NQRZ WKDW WKLV ZLOO UHTXLUH WKDW \RX VSHQG HYHQ PRUH RI \RXU WLPH ZRUNLQJ RQ WKLV FRQWURYHUVLDO DQG GLI¿FXOW LVVXH RI IRUFHG HYLFWLRQV %XW , DOVR NQRZ IRU KDYLQJ FDUHIXOO\ UHYLHZHG HDFK QRPLQDWLRQ WKDW DOO RI \RX DUH FRQWULEXWLQJ WR WKLV HQGHDYRXU ZLWK HQWKXVLDVP DQG HDJHUQHVV WR KHOS LPSURYH WKH OLYHV RI WKH XUEDQ SRRU ZKR DUH VWULYLQJ IRU WKHLU ULJKWV DQG WU\LQJ WR DYRLG D ZRUVHQLQJ RI WKHLU DOUHDG\ GLI¿FXOW OLYHV 7KH *RYHUQLQJ &RXQFLO RI 81 +$%,7$7 ZKLFK UHFHQWO\ DSSURYHG WKH HVWDEOLVKPHQW RI WKLV JURXS KDV RQO\ DQVZHUHG D OHJLWLPDWH DQG SUREDEO\ ORQJ RYHUGXH UHTXHVW WKDW KDV HPDQDWHG IURP WKH PLOOLRQV RI WKRVH ZKR DUH OLYLQJ RQ D GDLO\ EDVLV XQGHU WKH WKUHDW RI HYLFWLRQV 'XULQJ P\ WHQXUH DV KHDG RI 81 +$%,7$7 , KDYH PHW DQG LQWHUDFWHG ZLWK WKRXVDQGV RI WKRVH XUEDQ SRRU ZKR LQ WKHLU RZQ VLPSOH EXW VR HORTXHQW DQG PRYLQJ ZD\ KDYH HQWUXVWHG PH ZLWK WKHLU SOHDGLQJ PHVVDJH ³:H ZDQW WR EH WUHDWHG DV KXPDQ EHLQJV ZH ZDQW GLJQLW\ DQG VHFXULW\ IRU RXU FKLOGUHQ ZH UHTXHVW WKH ULJKW WR EH FRQVLGHUHG DV IXOO FLWL]HQV´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¿HG E\ SUDFWLFHV LQ D QXPEHU RI FRXQWULHV WKDW FRQWLQXH WR LJQRUH WKH ULJKWV RI VRPH FLWL]HQV DQG PRUH SUHFLVHO\ WKRVH ZKR RIWHQ GR QRW KDYH WKH FDSDFLW\ WR VSHDN IRU
LY
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
WKHPVHOYHV ,W LV WKHQ WKH UROH RI WKH 81 WR UHPLQG RXU SDUWQHUV RI WKHLU REOLJDWLRQV DQG VHH WKDW WKH\ IXOO\ FRPSO\ ZLWK WKRVH LQWHUQDWLRQDO ODZV ZKLFK WKH\ KDYH DJUHHG XSRQ 7KLV LV LQGHHG D YHU\ VHQVLWLYH LVVXH DQG WKH DSSURDFK WR LW PD\ QRW EH YHU\ VLPSOH &DSDFLW\ WR FRQYLQFH DQG WR VKRZ JRRG SUDFWLFHV QHJRWLDWLRQ VNLOOV DQG D GHHS NQRZOHGJH RI WKH ODZV DQG WKH UXOHV DUH UHTXLUHG 7KH FRPSRVLWLRQ RI \RXU JURXS KDV EHHQ EDVHG RQ WKH FRQVLGHUDWLRQ RI WKHVH SULQFLSOHV DQG , DP FRQ¿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¿JKW RQ WKHVH IURQWV DQG ZH ZLOO VXFFHHG , ZLVK \RX VXFFHVV LQ \RXU HQGHDYRXU DQG , DP ORRNLQJ IRUZDUG WR RXU QH[W PHHWLQJ DW WKH :RUOG 8UEDQ )RUXP LQ 6HSWHPEHU WR PHDVXUH RXU SURJUHVV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
Y
7$%/( 2) &217(176
(67$%/,6+0(17 $1' $&7,9,7,(6 7KH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV ,QDXJXUDO PHHWLQJ DQG SODQV 0HPEHUVKLS 0HWKRGRORJ\ DQG DSSURDFK WR IRUFHG HYLFWLRQV 7HUPV RI 5HIHUHQFH RI $*)( :RUOG 8UEDQ )RUXP %DUFHORQD
&$6( ,1)250$7,21 5HSRUWHG &DVH 3RP 0DKDNDQ %DQJNRN 7KDLODQG 5HSRUWHG &DVH ± /\DUL ([SUHVVZD\ 3DNLVWDQ 5HSRUWHG &DVH ± .LEHUD 1DLUREL .HQ\D 5HSRUWHG &DVH ± 1HZ <RUN &LW\ 8QLWHG 6WDWHV RI $PHULFD 5HSRUWHG &DVH ± *\SVLHV DQG 7UDYHOOHUV LQ WKH 8. 5HSRUWHG &DVH .DPSDOD 8JDQGD 5HSRUWHG &DVH 'LJ\D 1DWLRQDO 3DUN *KDQD 5HSRUWHG &DVH ± 1RUWK 5DLOZD\ DQG RWKHU HYLFWLRQV 3KLOLSSLQHV 5HSRUWHG &DVH ± 9DULRXV $UHDV -DNDUWD ,QGRQHVLD 5HSRUWHG &DVH 9LOOD %HUPHMR %XHQRV $LUHV $UJHQWLQD 5HSRUWHG &DVH $ 6DQ -XDQ GH /XULJDQFKR /LPD 3HUX 5HSRUWHG &DVH % 7DPER *UDQGH 6DQ /RUHQ]R 3HUX 5HSRUWHG &DVH ± 9DULRXV $UHDV 'DNDU 6HQHJDO 5HSRUWHG &DVH ± 5RPD &RPPXQLWLHV *UHHFH 5HSRUWHG &DVH $OFkQWDUD 4XLORPER &RPPXQLWLHV %UD]LO 5HSRUWHG &DVH $JERJEORVKLH 2OG )DGDPD &RPPXQLW\ $FFUD *KDQD
YL
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$*)( 0,66,21 5(32576 0LVVLRQ WR WKH 'RPLQLFDQ 5HSXEOLF ± 0DUFK 0LVVLRQ WR &XULWLED %UD]LO )HEUXDU\ 0LVVLRQ WR 5RPH ,WDO\ ± )HEUXDU\ 7KH FDVH RI 6UL /DQND (YLFWLRQ WKUHDWV GXULQJ WKH UHFRQVWUXFWLRQ SKDVH IROORZLQJ WKH ,QGLDQ 2FHDQ 7VXQDPL
5()/(&7,21 21 620( ,1129$7,9( 62/87,216 $1' 7+( :$< )25:$5' ,QWURGXFWLRQ :KR DUH WKH NH\ DFWRUV EULQJLQJ DERXW LQQRYDWLYH VROXWLRQV" $GGLWLRQDO OHVVRQV IURP WKH $*)( PLVVLRQV 7KH ZD\ IRUZDUG &RQFOXGLQJ UHPDUNV $ KRSH WR OLYH LQ SHDFH DQG GLJQLW\ LQ WKH IDFH RI JOREDO HFRQRPLF IRUFHV
$11(;85(6 $11(; 81 +$%,7$7 *RYHUQLQJ &RXQFLO 5HVROXWLRQV $11(; 0LQXWHV RI ,QDXJXUDO 0HHWLQJ RI $*)( 0DUFK $11(; 0LQXWHV RI $*)( 0HHWLQJ $SULO $11(; $*)( 7HUPV RI 5HIHUHQFH $11(; $*)( 'DWD &ROOHFWLRQ )RUPDW $11(; /HWWHU RI ,QYLWDWLRQ WR $*)( IURP *RYHUQPHQW RI *KDQD $11(; /HWWHU RI ,QYLWDWLRQ WR $*)( IURP 0XQLFLSDOLW\ RI %RFD &KLFD $11(; /HWWHU RI ,QYLWDWLRQ WR $*)( IURP WKH 0LQLVWU\ RI WKH &LWLHV *RYHUQPHQW RI %UD]LO $11(; 3URSRVHG 7HUPV RI $JUHHPHQW EHWZHHQ WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV 81 +$%,7$7 DQG WKH &LW\ RI &XULWLED %UD]LO IRU DQ (YLFWLRQ )UHH &LW\ $11(; /HWWHU RI ,QYLWDWLRQ WR $*)( IURP WKH &RPPXQH 'L 5RPD $11(; ([DPSOH RI 3UHVV &RYHUDJH RI $*)( 0LVVLRQ WR 5RPH $11(; 'HFUHH E\ WKH 0D\RU RI %RELJQ\ RQ WKH (YLFWLRQ RI 7HQDQWV 0DUFK $11(; &RPPRQ 6WDWHPHQW EHWZHHQ WKH 0XQLFLSDOLW\ RI 5RPH DQG WKH 81 +$%,7$7 $*)( 0LVVLRQ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
(67$%/,6+0(17 $1' $&7,9,7,(6 7KH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV 'XULQJ LWV WK 6HVVLRQ KHOG LQ 1DLUREL IURP 0D\ WKH *RYHUQLQJ &RXQFLO RI 81 +$%,7$7 DGRSWHG 5HVROXWLRQ ³,PSOHPHQWLQJ DQG PRQLWRULQJ WKH JRDO RI WKH 8QLWHG 1DWLRQV 0LOOHQQLXP 'HFODUDWLRQ RQ LPSURYLQJ WKH OLYHV RI VOXP GZHOOHUV´ 5HVROXWLRQ LQFOXGHG D UHTXHVW E\ WKH *RYHUQLQJ &RXQFLO WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 ³LQ OLQH ZLWK WKH UHFRPPHQGDWLRQV RI WKH :RUOG 8UEDQ )RUXP DW LWV ¿UVW VHVVLRQ WR HVWDEOLVK DQ DGYLVRU\ JURXS WR PRQLWRU DQG LGHQWLI\ DQG LI VR UHTXHVWHG WR SURPRWH DOWHUQDWLYHV WR XQODZIXO HYLFWLRQV ´ $WWDFKHG DV $QQH[
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¿UVW WDVN WKH $*)( GLVFXVVHG LWV GUDIW 7HUPV RI 5HIHUHQFH 725 DQG GHFLGHG RQ D SURFHVV IRU IXUWKHU UH¿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
81 +$%,7$7 *RYHUQLQJ &RXQFLO 5HVROXWLRQ $UWLFOH )RU IXOO WH[W RI 5HVROXWLRQ VHH $QQH[
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
7KH JURXS DJUHHG WR PHHW DJDLQ LQ 1HZ <RUN RQ $SULO DV PRVW RI WKH PHPEHUV ZRXOG EH SUHVHQW WR DWWHQG WKH &RPPLVVLRQ RQ 6XVWDLQDEOH 'HYHORSPHQW $ WKLUG $*)( PHHWLQJ ZRXOG EH KHOG RQ 6HSWHPEHU LQ %DUFHORQD 0LQXWHV RI PHHWLQJV DWWDFKHG DV $QQH[HV DQG
0HPEHUVKLS ,Q HVWDEOLVKLQJ WKH $*)( WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 EURXJKW WRJHWKHU D JURXS RI H[SHUWV LQ WKH ¿HOGV RI XUEDQ GHYHORSPHQW FRPPXQLW\ SDUWLFLSDWLRQ KXPDQ ULJKWV DQG IRUFHG HYLFWLRQV 'XH WR WKH QDWXUH DQG IRFXV RI WKH RUJDQLVDWLRQV WR ZKLFK WKHVH H[SHUWV EHORQJ WKH\ KDYH DOVR EURXJKW LQYDOXDEOH QHWZRUNV RI FRQWDFWV DQG H[SHULHQFH LQWR $*)( 7KH PHPEHUV RI $*)( DUH x -RFNLQ $USXWKDP 1DWLRQDO 6OXP 'ZHOOHUV )HGHUDWLRQ ,QGLD DUFE\F#YVQO LQ
x +HUPHV %LQQHU ([ 0D\RU RI 5RVDULR $UJHQWLQD KELQQHU#KRWPDLO FRP
x -RHO %ROQLFN 3HRSOHV 'LDORJXH 6RXWK $IULFD MRHOE#FRXUF RUJ ]D
x 6RPVRRN %RRQ\DEDQFKD &RPPXQLW\ 2UJDQL]DWLRQV 'HYHORSPHQW ,QVWLWXWH $VLDQ &RDOLWLRQ IRU +RXVLQJ 5LJKWV $&+5 7KDLODQG VRRPVRRN#OR[LQIR FR WK
x <YHV &DEDQQHV +DUYDUG 8QLYHUVLW\ \FDEDQHV#PDF FRP
x 2OLYLR 'XWUD 0LQLVWHU RI &LWLHV %UD]LO ROLYLR#FLGDGHV JRY EU
x 0DOLFN *D\H (1'$ 7LHUV 0RQGH 6HQHJDO UXS#HQGD VQ
x 6FRWW /HFNLH &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( VFRWW#FRKUH RUJ x ,QJHU /LQGJUHQ 0LQLVWU\ RI /RFDO *RYHUQPHQW DQG 5HJLRQDO 'HYHORSPHQW 1RUZD\ LQJHU OLQGJUHQ#NUG GHS QR x +RVDND 0LWVXKLNR $VLDQ &RDOLWLRQ IRU +RXVLQJ 5LJKWV -DSDQ KRVDND#PLKDPD Q IXNXVKL DF MS
x /HWLFLD 2VRULR &2+5( /DWLQ $PHULFD FRKUHDPHULFDV#FRKUH RUJ
x &HVDUH 2WWROLQL ,QWHUQDWLRQDO $OOLDQFH RI WKH ,QKDELWDQWV ,$, FHVDUH RWWROLQL#OLEHUR LW
x &RXJODQ 3DWKHU H7KHNZLQL +RXVLQJ 'HSDUWPHQW 'XUEDQ 6RXWK $IULFD SDWKHU#GXUEDQ JRY ]D
x *XLOOHUPR 5RGUtJXH] ([HFXWLYH &RPPLVVLRQ RI WKH &RQWLQHQWDO )URQW RI &RPPXQLW\ 2UJDQL]DWLRQV /DWLQ $PHULFD PHPRIFRF#KRWPDLO FRP
x 'DYLG 6DWWHUWKZDLWH +XPDQ 6HWWOHPHQWV 3URJUDPPH ,QWHUQDWLRQDO ,QVWLWXWH IRU (QYLURQPHQW DQG 'HYHORSPHQW ,,(' 8QLWHG .LQJGRP 'DYLG 6DWWHUWKZDLWH#LLHG RUJ
x 3DXOR 7HL[HLUD 6HFUHWDU\ +RXVLQJ DQG 8UEDQ 'HYHORSPHQW 6DR 3DXOR %UD]LO SWHL[HLUDI#KRWPDLO FRP
x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¿UVW $*)( &RQYHQHU
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
0HWKRGRORJ\ DQG DSSURDFK WR IRUFHG HYLFWLRQV 'XULQJ LWV ¿UVW WZR PHHWLQJV $*)( PHPEHUV HQJDJHG LQ LPSRUWDQW IRUPDWLYH GHEDWHV WR ¿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x 'HYHORSPHQW DQG LQIUDVWUXFWXUH SURMHFWV x /DUJH LQWHUQDWLRQDO HYHQWV LQFOXGLQJ JOREDO FRQIHUHQFHV DQG LQWHUQDWLRQDO VSRUWLQJ HYHQWV VXFK DV WKH 2O\PSLF *DPHV x 8UEDQ UHGHYHORSPHQW RU µEHDXWL¿FDWLRQ¶ DLPHG DW GUDZLQJ LQYHVWPHQW LQWR SUHYLRXVO\ QHJOHFWHG DUHDV x 3URSHUW\ PDUNHW IRUFHV RIWHQ VXSSRUWHG E\ VWDWH LQWHUYHQWLRQ UHVXOWLQJ LQ V\VWHPDWLF µJHQWUL¿FDWLRQ¶ RI DUHDV x 7KH DEVHQFH RU ZLWKGUDZDO RI 6WDWH VXSSRUW WR WKH SRRU XQGHU GHWHULRUDWLQJ HFRQRPLF FRQGLWLRQV x 3ROLWLFDO FRQÃ&#x20AC;LFW UHVXOWLQJ LQ µHWKQLF FOHDQVLQJ¶ RI HQWLUH FRPPXQLWLHV DQG JURXSV x $OOHJHG QDWXUDO KD]DUGV QRW FRQYLQFLQJO\ GRFXPHQWHG RU SURYHG H J Ã&#x20AC;RRG ULVN SRWHQWLDO Ã&#x20AC;RRGLQJ DQG 7VXQDPL GDQJHU 7KH JURXS DOVR WRRN QRWH RI WKH IDFW WKDW LQWHUQDWLRQDO KXPDQ ULJKWV ODZ RQ IRUFHG HYLFWLRQV FOHDUO\ VWDWHV WKDW WKHVH DPRXQW WR JURVV YLRODWLRQV RI KXPDQ ULJKWV 7KH\ DOVR UXQ FRXQWHU WR 0LOOHQQLXP 'HYHORSPHQW *RDO ZKLFK DLPV WR DFKLHYH ³VLJQL¿FDQW LPSURYHPHQW LQ WKH OLYHV RI DW OHDVW PLOOLRQ VOXP GZHOOHUV E\ WKH \HDU ´ 3HUKDSV PRVW QRWDEOH RI WKH DSSOLFDEOH LQWHUQDWLRQDO VWDQGDUGV DUH *HQHUDO &RPPHQW 1R RQ WKH 5LJKW WR $GHTXDWH +RXVLQJ DQG *HQHUDO &RPPHQW 1R RQ )RUFHG (YLFWLRQV DGRSWHG E\ WKH 81 &RPPLWWHH RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV LQ DQG UHVSHFWLYHO\ *HQHUDO &RPPHQW 1R GH¿QHV WKH ULJKW WR DGHTXDWH KRXVLQJ DQG GHFODUHV WKDW IRUFHG HYLFWLRQ LV SULPD IDFLH LQFRPSDWLEOH ZLWK WKDW ULJKW *HQHUDO &RPPHQW 1R DI¿UPV WKDW IRUFHG HYLFWLRQV YLRODWH WKH ,QWHUQDWLRQDO &RYHQDQW RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV LQGLFDWLQJ WKDW ³WKH 6WDWH LWVHOI PXVW UHIUDLQ IURP IRUFHG HYLFWLRQV DQG HQVXUH WKDW WKH ODZ LV HQIRUFHG DJDLQVW LWV DJHQWV RU WKLUG SDUWLHV ZKR FDUU\ RXW IRUFHG HYLFWLRQV´ ,W IXUWKHU VWDWHV WKDW ³>H@YLFWLRQV VKRXOG QRW UHVXOW LQ LQGLYLGXDOV EHLQJ UHQGHUHG KRPHOHVV RU YXOQHUDEOH WR WKH YLRODWLRQ RI RWKHU KXPDQ BBBBBBBBBBBB
8QLWHG 1DWLRQV 6HSWHPEHU 0LOOHQQLXP 'HFODUDWLRQ 0LOOHQQLXP 'HYHORSPHQW *RDO 7DUJHW KWWS ZZZ GHYHORSPHQWJRDOV RUJ (QYLURQPHQW KWP &RPPLWWHH RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV *HQHUDO &RPPHQW 1R RQ 5LJKW WR $GHTXDWH +RXVLQJ $UW RI WKH &RYHQDQW &RPPLWWHH RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV *HQHUDO &RPPHQW 1R RQ 7KH ULJKW WR DGHTXDWH KRXVLQJ $UW RI WKH &RYHQDQW IRUFHG HYLFWLRQV 81+&+5
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
ULJKWV´ DQG SUHVFULEHV SURFHGXUDO SURWHFWLYH PHFKDQLVPV IRU HYLFWHHV LQ WKRVH H[FHSWLRQDO FDVHV ZKHUH HYLFWLRQ LV XQDYRLGDEOH )RUFHG HYLFWLRQV DUH DOVR SURVFULEHG LQ VHYHUDO RWKHU KXPDQ ULJKWV WUHDWLHV DGRSWHG DW WKH LQWHUQDWLRQDO DQG UHJLRQDO OHYHOV LQFOXGLQJ WKH ,QWHUQDWLRQDO &RYHQDQW RQ &LYLO DQG 3ROLWLFDO 5LJKWV WKH $IULFDQ &KDUWHU RQ +XPDQ DQG 3HRSOHV 5LJKWV WKH $PHULFDQ &RQYHQWLRQ RQ +XPDQ 5LJKWV DQG WKH (XURSHDQ &RQYHQWLRQ IRU WKH 3URWHFWLRQ RI +XPDQ 5LJKWV DQG )XQGDPHQWDO )UHHGRPV )XUWKHUPRUH WKH 81 &RPPLVVLRQ RQ +XPDQ 5LJKWV KDV DI¿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¿W IURP VKDUHG OHDUQLQJ PRQLWRULQJ HYDOXDWLRQ DQG UHÃ&#x20AC;HFWLRQ ,W ZDV DFNQRZOHGJHG WKDW EOXHSULQW DSSURDFKHV DUH VHOGRP HIIHFWLYH LQ GHDOLQJ ZLWK IRUFHG HYLFWLRQV 0HWKRGRORJLHV QHHG WR EH Ã&#x20AC;H[LEOH DQG DGDSWHG WR VSHFL¿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
BBBBBBBBBBBB
&RPPLWWHH RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV *HQHUDO &RPPHQW 1R RQ 7KH ULJKW WR DGHTXDWH KRXVLQJ $UW RI WKH &RYHQDQW IRUFHG HYLFWLRQV SDUDJUDSKV DQG
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
7HUPV RI 5HIHUHQFH RI $*)( 2Q WKH EDVLV RI WKHVH GLVFXVVLRQV DQG WKH ZRUN RI WKH GUDIWLQJ FRPPLWWHH $*)( ¿QDOLVHG D GUDIW 7HUPV RI 5HIHUHQFH 725 E\ WKH PLGGOH RI ZKLFK ZDV VXEPLWWHG WR 81 +$%,7$7 IRU FRQVLGHUDWLRQ DQG DSSURYDO 7KLV GUDIW LV DWWDFKHG $QQH[ DQG LWV VDOLHQW IHDWXUHV DUH VXPPDULVHG EHORZ
0DQGDWH 7KH $GYLVRU\ *URXS GHULYHV LWV PDQGDWH DV DQ $GYLVRU\ RUJDQ WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 IURP D YDULHW\ RI VRXUFHV LQFOXGLQJ JRYHUQPHQWV¶ FRPPLWPHQWV LQ WKH +DELWDW $JHQGD 3DUD Q
DQG WKH )LUVW 6HVVLRQ RI WKH :RUOG 8UEDQ )RUXP KHOG LQ 1DLUREL LQ 7KH :RUOG 8UEDQ )RUXP XUJHG ³WKH 8QLWHG 1DWLRQV 6\VWHP WR XWLOLVH WKLV JURXS DQG RU RWKHU PHFKDQLVPV WR WDNH D SRVLWLRQ RQ KRZ LW ZLOO PRQLWRU DQG UHVSRQG WR XQODZIXO HYLFWLRQV ´ ,Q 0D\ WKH WK *RYHUQLQJ &RXQFLO RI 81 +$%,7$7 DGRSWHG D UHVROXWLRQ LQ ZKLFK LW ³>U@HTXHVWV WKH ([HFXWLYH 'LUHFWRU LQ OLQH ZLWK WKH UHFRPPHQGDWLRQV RI WKH :RUOG 8UEDQ )RUXP DW LWV ¿UVW VHVVLRQ WR HVWDEOLVK DQ DGYLVRU\ JURXS WR PRQLWRU DQG LGHQWLI\ DQG LI VR UHTXHVWHG WR SURPRWH DOWHUQDWLYHV WR XQODZIXO HYLFWLRQV´
&RPSRVLWLRQ 7KH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV FRQVLVWV RI XS WR PHPEHUV DSSRLQWHG E\ WKH ([HFXWLYH 'LUHFWRU 7KH FRPSRVLWLRQ RI WKLV JURXS UHÃ&#x20AC;HFWV DSSURSULDWH UHJLRQDO LQVWLWXWLRQDO DQG JHQGHU EDODQFH 7KH SULPDU\ REMHFWLYH RI WKH $GYLVRU\ *URXS LV WR SUHYHQW IRUFHG HYLFWLRQV WKURXJK WKH SURPRWLRQ RI DOWHUQDWLYHV WR IRUFHG HYLFWLRQV VXFK DV LQ VLWX XSJUDGLQJ QHJRWLDWHG UHVHWWOHPHQW DQG RWKHU DOWHUQDWLYH RSWLRQV :KHQ UHORFDWLRQ LV XQDYRLGDEOH WKH $GYLVRU\ *URXS LGHQWL¿HV DOWHUQDWLYH DFWLRQV VROXWLRQV WKDW ZLOO UHGXFH WKH QHJDWLYH HIIHFWV RI VXFK LQFLGHQWV $V SDUW RI WKHVH REMHFWLYHV WKH $GYLVRU\ *URXS DGYLVHV DQG DVVLVWV 81 +DELWDW WR XQGHUWDNH DFWLYLWLHV VXFK DV x IDFLOLWDWLQJ ZRUNVKRSV IRU DIIHFWHG FRPPXQLWLHV JRYHUQPHQW RI¿FLDOV DQG NH\ VWDNHKROGHUV RQ EHVW FDVH DQG EHVW SUDFWLFH VFHQDULRV RI FDVHV ZKLFK KDYH EHHQ VXFFHVVIXOO\ EURNHUHG WR SUHYHQW HYLFWLRQV WKURXJK SHRSOH SXEOLF SULYDWH SDUWQHUVKLSV OHDGLQJ WR VXVWDLQDEOH SUR SRRU GHYHORSPHQW x PDNLQJ VXEPLVVLRQV DQG SUHVHQWDWLRQV LQ FRQQHFWLRQ ZLWK SODQQHG HYLFWLRQV LQ RUGHU WR SURPRWH DOWHUQDWLYH DSSURDFKHV x IDFLOLWDWLQJ GLDORJXH EHWZHHQ WKH VWDNHKROGHUV RI FXUUHQW RU SODQQHG FDVHV RI HYLFWLRQV ZLWK D YLHZ RI DFKLHYLQJ QHJRWLDWHG DOWHUQDWLYHV x HQFRXUDJLQJ JRYHUQPHQWV DQG LQVWLWXWLRQV WR GHYHORS SURDFWLYH SURJUDPPHV VXFK DV ODQG WHQXUH UHIRUP WR KHOS LQ UHGXFLQJ WKH RFFXUUHQFH RI ODUJH VFDOH IRUFHG HYLFWLRQV x PRQLWRULQJ DFWV RI IRUFHG HYLFWLRQV DQG IDFLOLWDWLQJ LQIRUPDWLRQ DQG H[SHULHQFH H[FKDQJH BBBBBBBBBBBB
81 +$%,7$7 5HSRUW RI WKH )LUVW 6HVVLRQ RI WKH :RUOG 8UEDQ )RUXP $QQH[ , KWWS ZZZ XQKDELWDW RUJ XI DL KWPO 81 +$%,7$7 *RYHUQLQJ &RXQFLO 5HVROXWLRQ $UWLFOH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
x x
x x x
EHWZHHQ WKH VWDNHKROGHUV RI VXFK LQFLGHQWV LQFOXGLQJ SUHVV DQG PHGLD SURIHVVLRQDO DVVRFLDWLRQV SURYLGLQJ DGYLVRU\ VHUYLFHV WR VWDNHKROGHUV DOHUWLQJ WKH LQWHUQDWLRQDO FRPPXQLW\ DQG DOO RWKHU VWDNHKROGHUV LQFOXGLQJ UHOHYDQW 8QLWHG 1DWLRQV WUHDW\ ERGLHV RQ SRWHQWLDO DQG FXUUHQW IRUFHG HYLFWLRQV DQG WKH HIIHFWV RI VXFK LQFLGHQWV IDFLOLWDWLQJ SURYLVLRQ RI OHJDO DQG RWKHU DVVLVWDQFH WR VWDNHKROGHUV SDUWLFXODUO\ WR YLFWLPV RI IRUFHG HYLFWLRQV SURYLGLQJ DVVLVWDQFH WR UHVHDUFK WUDLQLQJ DQG FDSDFLW\ EXLOGLQJ DFWLYLWLHV RQ DOWHUQDWLYHV WR IRUFHG HYLFWLRQV DQG SURPRWLQJ DGYRFDF\ DFWLYLWLHV DQG RWKHU LQLWLDWLYHV FRPEDWLQJ IRUFHG HYLFWLRQV
,Q DGGLWLRQ WR WKHVH WDVNV WKH $GYLVRU\ *URXS DOVR GRFXPHQWV VHOHFWHG FDVHV RI VXFFHVVIXO DOWHUQDWLYHV DV ZHOO DV FDVHV RI IRUFHG HYLFWLRQV SUHSDUHV SHULRGLF UHSRUWV RQ LWV DFWLYLWLHV DQG DWWHQGV WR RWKHU WDVNV UHODWHG WR WKH *URXS¶V PDQGDWH RQ UHTXHVW RI WKH 81 +DELWDW¶V ([HFXWLYH 'LUHFWRU
6XSSRUW QHWZRUN 7KH $GYLVRU\ *URXS LV DVVLVWHG E\ D QHWZRUN RI SHUVRQV ZKR DUH UHSUHVHQWDWLYHV RI RUJDQLVDWLRQV LQ WKH ¿HOGV RI KXPDQ VHWWOHPHQWV ODZ WHQXUH SROLF\ DQG KXPDQ ULJKWV LQFOXGLQJ FLYLO VRFLHW\ JURXSLQJV 7KLV 1HWZRUN XQGHUWDNHV RQ DQ DG KRF EDVLV DFWLYLWLHV RQ EHKDOI RI DQG XSRQ UHTXHVW IURP WKH $GYLVRU\ *URXS VXFK DV x (QJDJLQJ LQ IDFW ¿QGLQJ PLVVLRQV ZKHQ FDVHV RI IRUFHG HYLFWLRQ DUH UHSRUWHG x (QJDJLQJ LQ SUHOLPLQDU\ GLVFXVVLRQV ZLWK UHOHYDQW VWDNHKROGHUV ZKHQ UHTXHVWHG WR SURPRWH DOWHUQDWLYHV WR XQODZIXO HYLFWLRQV x 0RQLWRULQJ VLWXDWLRQV JOREDOO\ DQG SUHSDULQJ SHULRGLF UHSRUWV RQ IRUFHG HYLFWLRQV x &RQGXFWLQJ UHVHDUFK WUDLQLQJ DQG FDSDFLW\ EXLOGLQJ DFWLYLWLHV LQ UHODWLRQ WR WKH PDQGDWH RI WKH $GYLVRU\ *URXS x $WWHQGLQJ ZKHQ UHOHYDQW PHHWLQJV RI WKH $GYLVRU\ *URXS
:RUOG 8UEDQ )RUXP %DUFHORQD 7KH :RUOG 8UEDQ )RUXP KHOG LQ %DUFHORQD IURP WR 6HSWHPEHU SURYLGHG DQ LGHDO SODWIRUP IRU WKH ¿UVW SXEOLF DSSHDUDQFH RI WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)( RUJDQLVHG D KLJKO\ VXFFHVVIXO 1HWZRUNLQJ (YHQW RQ 6HSWHPEHU DWWHQGHG E\ PRUH WKDQ SHRSOH ,Q DGGLWLRQ WR PHPEHUV RI $*)( WKH IROORZLQJ SDUWLFLSDQWV DWWHQGHG WKH VHVVLRQ UHSUHVHQWDWLYHV RI FRXQWULHV DQG FLWLHV WKDW KDYH VXFFHVVIXOO\ UHVROYHG HYLFWLRQ LVVXHV UHSUHVHQWDWLYHV RI FRXQWULHV DQG FLWLHV IDFLQJ WKUHDWV RI HYLFWLRQ RUJDQLVDWLRQV DFWLYH LQ WKH ¿HOG RI KRXVLQJ ULJKWV 81 DJHQFLHV JRYHUQPHQW UHSUHVHQWDWLYHV LQFOXGLQJ VHQLRU UHSUHVHQWDWLYHV IURP *KDQD DQG .HQ\D ERWK RI ZKLFK FRXQWULHV ZHUH GLVFXVVHG GXULQJ WKH SUHVHQWDWLRQV DQG FRPPXQLW\ UHSUHVHQWDWLYHV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
7KH $*)( 1HWZRUNLQJ (YHQW ZDV RSHQHG E\ WKH %UD]LOLDQ 0LQLVWHU RI &LWLHV 2OLYLR 'XWUD DQG WKH $*)( &RQYHQHU <YHV &DEDQQHV ZKR DOVR VHUYHG DV 0RGHUDWRU RI WKH SURFHHGLQJV 7KH WKHPH RI WKH HYHQW ZDV µ)LJKWLQJ )RUFHG (YLFWLRQV¶ ,Q SUHSDUDWLRQ IRU WKH HYHQW $*)( KDG FROOHFWHG H[WHQVLYH LQIRUPDWLRQ RQ IRUFHG HYLFWLRQV DQG LQQRYDWLYH FRPPXQLW\ GULYHQ PHWKRGRORJLHV WR FRXQWHU WKHVH
3UHVHQWDWLRQV DW WKH 1HWZRUNLQJ (YHQW 7KH SUHVHQWDWLRQV ZHUH JLYHQ LQ WKUHH VHJPHQWV
3UHVHQWDWLRQ RI 5HSRUW RQ (YLFWLRQV 7KH $*)( UHSRUW RQ HYLFWLRQV ZDV SUHVHQWHG E\ /HWLFLD 2VRULR RI &2+5( WRJHWKHU ZLWK WHVWLPRQLHV RI VSHFL¿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³WKH FDVHV SUHVHQWHG KDYH VKRZQ WKDW HYLFWLRQV DUH GHHSO\ UHÃ&#x20AC;HFWLYH RI SDWWHUQV RI VRFLDO LQHTXDOLWLHV UHYHDOLQJ WKH IDXOW OLQHV RI VRFLDO GLVFULPLQDWLRQ LQMXVWLFH DQG H[FOXVLRQ 7R ZRUN DJDLQVW IRUFHG HYLFWLRQV LV WR ZRUN IRU WKH SURWHFWLRQ RI KRXVLQJ ULJKWV DV ZHOO DV IRU VRFLDO HTXDOLW\ DQG VRFLDO MXVWLFH´ 0DOLN *D\H GHVFULEHG WKH IRUFHG HYLFWLRQV VLWXDWLRQ LQ :HVW $IULFD DQG LQ 6HQHJDO VSHFL¿FDOO\ &HVDUH 2WWROLQL VSRNH RQ IRUFHG HYLFWLRQV LQ (XURSH LOOXVWUDWLQJ WKDW WKLV LV QRW MXVW D WKLUG ZRUOG SUREOHP $IWHU WKHVH SUHVHQWDWLRQV WKH 6SHFLDO 5DSSRUWHXU RQ $GHTXDWH +RXVLQJ 0LORRQ .RWKDUL JDYH KLV SHUVSHFWLYH DQG FRQFOXVLRQV .RWKDUL VWUHVVHG WKH LPSRUWDQFH RI WKH JHQGHU GLPHQVLRQ RI IRUFHG HYLFWLRQV +H SRLQWHG RXW WKDW GXULQJ HYLFWLRQV ZRPHQ ZHUH DW KLJK ULVN RI EHLQJ EHDWHQ UDSHG WRUWXUHG DQG HYHQ NLOOHG +H DOVR UDLVHG WKH LVVXHV RI WKH JURZLQJ SUREOHP RI µODQG PD¿DV¶ DQG FDUWHOV WKH UXUDO GLPHQVLRQ WR WKH IRUFHG HYLFWLRQV SUREOHP WKH JURZLQJ QXPEHU RI FRXQWULHV WKDW DUH QRW UHVSRQGLQJ WR LQWHUQDWLRQDO SUHVVXUH WR FRPSO\ ZLWK LQWHUQDWLRQDO DQG HYHQ QDWLRQDO ODZ DQG WKH HIIHFWV RI WKH JOREDO ZDU RQ WHUURU RQ WKH VHFXULW\ RI FRPPXQLWLHV
BBBBBBBBBBBB
2VRULR / µ$GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV ± %DUFHORQD ,QIRUPDWLRQ RQ &DVHV RI 7KUHDWHQHG DQG ,PSOHPHQWHG (YLFWLRQV¶ 3UHVHQWDWLRQ DW 1HWZRUNLQJ (YHQW )LJKWLQJ )RUFHG (YLFWLRQV :RUOG 8UEDQ )RUXP %DUFHORQD 6HSWHPEHU S
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
,QQRYDWLYH $SSURDFKHV ± 2YHUYLHZ 3UHYHQWLYH 3ROLFLHV 7KLV VHJPHQW RQ LQQRYDWLYH DSSURDFKHV ZDV SUHVHQWHG E\ 'DYLG 6DWWHUWKZDLWH RI ,,(' DQG 6RPVRRN %RRQ\DEDQFKD RI $&+5 DQG FRPPXQLW\ UHSUHVHQWDWLYHV LQYLWHG WR MRLQ WKHP RQ VWDJH %RWK 6DWWHUWKZDLWH DQG %RRQ\DEDQFKD VWUHVVHG WKH LPSRUWDQFH RI IRFXVVLQJ RQ VROXWLRQV UDWKHU WKDQ SUREOHPV 6DWWHUWKZDLWH KLJKOLJKWHG WKH QHHG WR DOVR OHDUQ IURP FLWLHV VXFK DV ,OR LQ 3HUX ZKHUH WKHUH DUH YLUWXDOO\ QR HYLFWLRQV DV ODQG LV VLPSO\ PDGH DYDLODEOH IRU WKRVH ZKR QHHG LW $ ¿OP ZDV DOVR VKRZQ E\ -RHO %ROQLFN RI 6', RI ZRUN EHLQJ GRQH WR GHDO ZLWK WKH WKUHDWHQHG HYLFWLRQ RI SHRSOH LQ 2OG )DGDPD $JERJEORVKLH VHWWOHPHQW LQ $FFUD *KDQD E\ RUJDQLVDWLRQV VXFK DV 6', 3HRSOH¶V 'LDORJXH DQG &2+5( 7KLV ZDV IROORZHG E\ D SUHVHQWDWLRQ E\ -DQH :HUX RI 3DPRMD 7UXVW .HQ\D ZKR GLVFXVVHG LQQRYDWLYH DSSURDFKHV WR VHFXUH WKH KRXVLQJ ULJKWV RI WKH SRRU ZLWKRXW IRUFHG HYLFWLRQV 0LQLVWHU RI /DQG DQG 6HWWOHPHQWV RI .HQ\D $PRV .LPXQ\D DQG 0D\RU $GMLUL %ODQNVRQ RI $FFUD *KDQD SUHVHQWHG WKH SHUVSHFWLYH RI WKH DXWKRULWLHV LQ WKHLU UHVSHFWLYH FRXQWULHV DQG HQJDJHG LQ D GLUHFW DQG SRVLWLYH GLDORJXH ZLWK FRPPXQLW\ UHSUHVHQWDWLYHV IURP ERWK FRXQWULHV $W WKLV VWDJH PHPEHUV RI WKH DXGLHQFH ZHUH JLYHQ WKH FKDQFH WR UDLVH LVVXHV VKDUH H[SHULHQFHV DQG PDNH VXJJHVWLRQV 7KH PDLQ PHVVDJH RI WKH VHJPHQW ZDV WKDW ZKLOH WKHUH DUH PDQ\ HYLFWLRQ SUREOHPV DQG FKDOOHQJHV WKHUH KDYH DOVR EHHQ PDQ\ LQQRYDWLYH FRPPXQLW\ GULYHQ LQLWLDWLYHV WKDW KDYH SURYLGHG YLDEOH DQG VXVWDLQDEOH DOWHUQDWLYHV WR HYLFWLRQ ([DPSOHV ZHUH JLYHQ IURP $VLD $IULFD DQG /DWLQ $PHULFD 6XFK FDVHV QHHG WR EH QRWLFHG VWXGLHG VXSSRUWHG SXEOLFLVHG DQG XVHG DV OHVVRQV IRU RWKHU VLWXDWLRQV LQ RUGHU WR EHJLQ WR WXUQ WKH WLGH RI HYLFWLRQV ZRUOG ZLGH
3KRWR 81 +$%,7$7
3UHVHQWDWLRQ RQ ,QQRYDWLYH $SSURDFKHV $*)( 1HWZRUNLQJ HYHQW 6HSWHPEHU
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
:D\ IRUZDUG 3HUVSHFWLYH RI 81 +$%,7$7 DQG $*)( 7KH ¿QDO VHJPHQW RI WKH $*)( 1HWZRUNLQJ (YHQW ZDV DGGUHVVHG E\ )DURXN 7HEEDO RI 81 +$%,7$7 ,QJHU /LQGJUHQ RI WKH 1RUZHJLDQ 0LQLVWHU\ RI 5HJLRQDO 'HYHORSPHQW DQG /RFDO $XWKRULWLHV DQG <YHV &DEDQQHV WKH $*)( &RQYHQHU )DURXN 7HEEDO UHFDOOLQJ D VLWXDWLRQ RI IRUFHG HYLFWLRQ ZKLFK KLV RZQ IDPLO\ ZHQW WKURXJK GXH WR D FRQÃ&#x20AC;LFW LQ WKH V VDLG WKDW WKLV 1HWZRUNLQJ (YHQW ZDV LQ LWVHOI D VWHS IRUZDUG IRU $*)( +H VDLG LW KDG EHHQ VXFFHVVIXO LQ EULQJLQJ WRJHWKHU UHSUHVHQWDWLYHV RI JRYHUQPHQW ORFDO DXWKRULWLHV DQG FRPPXQLWLHV ZKR KDG HQWHUHG LQ DQ RSHQ DQG FRQVWUXFWLYH GLDORJXH +H VDLG WKDW $*)( DVVLVWV WKH ZRUN RI WKH *OREDO &DPSDLJQ IRU 6HFXUH 7HQXUH WR KHOS JRYHUQPHQWV DQG ORFDO DXWKRULWLHV WR ¿QG LQQRYDWLYH VROXWLRQV WR WKH SUREOHP RI IRUFHG HYLFWLRQV +H OLVWHG WKH DFWLYLWLHV VRRQ WR EH FDUULHG RXW E\ $*)( LQFOXGLQJ ¿HOG PLVVLRQV LQ VHYHUDO FRXQWULHV 7KH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 ZDV WKDQNHG IRU KHU UROH LQ HVWDEOLVKLQJ $*)( WR WDFNOH WKH SUREOHP RI IRUFHG HYLFWLRQV LQWHUQDWLRQDOO\ <YHV &DEDQQHV FRQFOXGHG WKH SURFHHGLQJV DV IROORZV ³7KLV GLDORJXH RQ HYLFWLRQV DQG RQ WKH ZD\V WR IDFH WKHP KDV EHHQ SDUWLFXODUO\ LQWHQVH DQG IUXLWIXO :H KHDUG WKDW IRUFHG HYLFWLRQV DUH QRW LVRODWHG 7KH\ RFFXU ZRUOG ZLGH WKH\ DUH JURZLQJ LQ QXPEHU DQG DUH RIWHQ PDVVLYH (YHQ LI WKH\ KDSSHQ LQ GLIIHUHQW ZD\V WKH\ DOZD\V FRPH WR WKH VDPH HQG WKH YLRODWLRQ RI D EDVLF KXPDQ ULJKW WKH ULJKW WR OLYH LQ SHDFH DQG WKH XQDFFHSWDEOH VXIIHULQJV RI PLOOLRQV RI FKLOGUHQ ZRPHQ DQG PHQ ³+RZHYHU RQH FRQFOXVLRQ FDQ EH GUDZQ IURP WKLV GLDORJXH VROXWLRQV GR H[LVW DQG LQQRYDWLYH ZD\V WR DYHUW HYLFWLRQV DQG WR ¿QG SRVLWLYH VROXWLRQV ZHUH SUHVHQWHG E\ PDQ\ RI \RX ZKR DUH LQYHQWLQJ WKHP ORFDOO\ RQ D GD\ WR GD\ EDVLV DQG PRVW RI WKH WLPHV LQ GLI¿FXOW DQG GDQJHURXV FRQWH[WV 7KHVH VROXWLRQV DUH D KRSH IRU DOO WKRVH DOO RYHU WKH ZRUOG ZKR DUH OLYLQJ XQGHU WKH WKUHDW RI HYLFWLRQ RU KDYH EHHQ YLROHQWO\ HYLFWHG ³7KH FHQWUDO UROH RI ORFDO DFWRUV DQG SDUWLFXODUO\ RI WKH WKUHDWHQHG DQG HYLFWHG FRPPXQLWLHV DORQJ ZLWK ORFDO DQG FHQWUDO JRYHUQPHQWV PXVW EH DFNQRZOHGJHG :H QHHG WR EH FRQ¿GHQW WKDW SHRSOH DUH DQ LQWHJUDO SDUW RI WKH VROXWLRQ 'LDORJXH DPRQJ DOO LQWHUHVWHG SDUWLHV DV KDSSHQHG WRGD\ LV IRU VXUH D VDIH ZD\ WR UHDFK LQQRYDWLYH ZD\V RXW ³,Q QDPH RI WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV ZH ZRXOG OLNH WR WKDQN 81 +DELWDW IRU WKH FRQ¿GHQFH VKRZQ LQ XV DQG WR SRLQW RXW WKH WUHPHQGRXV UHVSRQVLELOLW\ WKDW WKLV UHSUHVHQWV :H ZRXOG OLNH WR LQYLWH \RX WKH LQVWLWXWLRQV DQG WKH QHWZRUNV WKDW \RX EHORQJ WR WR LQIRUP XV DERXW HYLFWLRQV DQG DERXW WKH LQQRYDWLYH DSSURDFKHV \RX DUH DZDUH RI 7KLV ZLOO KHOS WKLV JURXS WR DGYLVH LQ D EHWWHU ZD\ WKH ([HFXWLYH 'LUHFWRU RI 81 +DELWDW RQ ZKDW VKRXOG EH GRQH DQG ZKDW VKRXOG EH DYRLGHG ´
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
&$6( ,1)250$7,21 2QH RI WKH ¿UVW WDVNV IDFLQJ $*)( ZDV WR FROOHFW UHOHYDQW DQG DFFXUDWH LQIRUPDWLRQ RQ HYLFWLRQ FDVHV $*)( PHPEHUV DQG VXSSRUW RUJDQLVDWLRQV ZRUNLQJ RQ IRUFHG HYLFWLRQV ZHUH LQYLWHG WR PDNH VXEPLVVLRQV XVLQJ D VWDQGDUGLVHG LQIRUPDWLRQ VKHHW VHH $QQH[ 7KLV GDWD JDWKHULQJ SURFHVV VHUYHG D QXPEHU RI SXUSRVHV x )LUVWO\ WKH LQIRUPDWLRQ FRXOG EH VWRUHG LQ D GDWDEDVH IRU IXWXUH XVH E\ $*)( 81 +DELWDW DQG WKHLU SDUWQHUV x 6HFRQGO\ SRROLQJ LQIRUPDWLRQ RQ DFWXDO FDVHV HQFRXQWHUHG E\ $*)( PHPEHUV ZRXOG HQDEOH WKH JURXS WR OHDUQ DERXW GLIIHUHQW W\SHV RI IRUFHG HYLFWLRQ DQG H[LVWLQJ DQG SRWHQWLDO UHPHGLDO PHWKRGRORJLHV x 7KLUGO\ WKH JURXS FRXOG XVH WKH LQIRUPDWLRQ WR LGHQWLI\ DQG IXUWKHU LQYHVWLJDWH SDUWLFXODU IRFXV FDVHV IRU ZKLFK LW FRXOG WKHQ GHYHORS UHPHGLDO VWUDWHJLHV DQG DFWLRQ SURSRVDOV 7KLV FKDSWHU FRQWDLQV VXPPDULHV RI D VHOHFWLRQ RI ¿IWHHQ RI WKH HYLFWLRQ FDVHV VXEPLWWHG WR $*)( IRU FRQVLGHUDWLRQ DQG SRWHQWLDO DFWLRQ GXULQJ LWV ¿UVW \HDU RI RSHUDWLRQ 7KH DFFRXQWV JLYHQ EHORZ DUH VXPPDULHV RI WKH HVVHQWLDO LQIRUPDWLRQ FROOHFWHG SOXV DQDO\VLV RI WKH FKDQFHV RI SRVLWLYH UHVROXWLRQ ,Q YLUWXDOO\ HYHU\ FDVH FRQVLGHUHG FRPPXQLWLHV DQG VXSSRUW RUJDQLVDWLRQV DUH YDOLDQWO\ WU\LQJ WR UHVLVW WKH HYLFWLRQ DQG WR ¿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¿UVW WKUHH RI WKHVH FDVHV WKH UHVXOWV RI ZKLFK DUH UHSRUWHG LQ &KDSWHU $ VLPLODU PLVVLRQ LV SODQQHG IRU WKH IRXUWK WR EH FRQGXFWHG LQ 0D\ -XQH
BBBBBBBBBBBB
6HH IRU H[DPSOH &2+5( (YLFWLRQV 0RQLWRU KWWS ZZZ FRKUH RUJ GRZQORDGV (YLFWLRQV 0RQLWRU 1R 9RO 'HF SGI DQG $&+5 H1HZV KWWS ZZZ DFKU QHW QHZV KWP
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
5HSRUWHG &DVH 3RP 0DKDNDQ %DQJNRN 7KDLODQG 3RP 0DKDNDQ LV D VPDOO \HW KLJKO\ VLJQL¿FDQW 7KDL FRPPXQLW\ RI DSSUR[LPDWHO\ SHRSOH UHVLGLQJ QH[W WR 0DKDNDQ )RUW EHWZHHQ WKH ROG FLW\ ZDOO DQG WKH FDQDO LQ FHQWUDO %DQJNRN ,Q -DQXDU\ WKH UHVLGHQWV ZHUH VHUYHG ZLWK D WKUHH PRQWK HYLFWLRQ QRWLFH WR YDFDWH WKHLU KRPHV ZKLFK ZDV LVVXHG E\ WKH %DQJNRN 0HWURSROLWDQ $GPLQLVWUDWLRQ %0$ 5HVLGHQWV ZHUH RIIHUHG UHORFDWLRQ WR D SODFH FDOOHG µ0LQKEXUL¶ NLORPHWUHV DZD\ RQ WKH RXWVNLUWV RI %DQJNRN
0RWLYDWLRQ IRU HYLFWLRQ 7KH GHYHORSPHQW LV SDUW RI WKH JRYHUQPHQW VSRQVRUHG µ5DWWDQDNRVLQ ,VODQG 3ODQ¶ $V SDUW RI WKLV µFRQVHUYDWLRQ DQG GHYHORSPHQW¶ SODQ WKH FRPPXQLW\ KDG WR PDNH ZD\ IRU D SXEOLF SDUN VLPLODU WR WKDW HVWDEOLVKHG DW 3KUD 6XPHQ )RUW 7KLV ZDV GHVSLWH WKH IDFW WKDW 3RP 0DKDNDQ KDG EHHQ RFFXSLHG E\ WKH UHVLGHQWV DQG WKHLU IRUHEHDUV IRU XS WR VL[ JHQHUDWLRQV )RUFHG HYLFWLRQ IURP WKLV DUHD ZRXOG DPRXQW WR D YLRODWLRQ RI HQWUHQFKHG DQG KRXVLQJ ULJKWV
1HJDWLYH LPSDFW RI HYLFWLRQ RQ FXOWXUDO KHULWDJH DQG XUEDQ ODQGVFDSH ,W ZRXOG DW WKH VDPH WLPH PHDQ WKH GHDWK RI ZKDW WKH DQWKURSRORJLVW 0LFKDHO +HU]IHOG D SURIHVVRU RI DQWKURSRORJ\ DW +DUYDUG 8QLYHUVLW\ GHVFULEHG DV D ³YLEUDQW FRKHVLYH FRPPXQLW\ ZLWK D UHPDUNDEOH VHQVH RI FROOHFWLYH UHVSRQVLELOLW\ DQG PXWXDO VXSSRUW´ ,Q DGGLWLRQ WKH GHPROLWLRQV ZRXOG PHDQ WKH HQG RI ³D UDUH FRPSOH[ RI YHUQDFXODU DUFKLWHFWXUH´ LQFOXGLQJ EHDXWLIXO ROG WHDN VWUXFWXUHV ZHOO ZRUWK SUHVHUYLQJ LQ UDSLGO\ PRGHUQLVLQJ %DQJNRN +HU]IHOG KDV DGGHG WKDW ³WKH FLW\ FRXOG ORVH D JUHDW RSSRUWXQLW\ WR FUHDWH D VOLFH RI %DQJNRN FXOWXUH WKDW ZRXOG DWWUDFW WRXULVWV 1R ZHVWHUQ WRXULVWV ZRXOG EH LQWHUHVWHG LQ D SODLQ SDUN EXW D FRPPXQLW\ ZLWKLQ D SDUN ZRXOG PDNH IRU D UHDO WRXULVW DWWUDFWLRQ´
&RPPXQLW\ PRELOLVDWLRQ 7KH 3RP 0DKDNDQ UHVLGHQWV RUJDQLVHG WKHPVHOYHV DQG WULHG WR SUHYHQW WKH HYLFWLRQ XVLQJ DOO WKH UHFRJQLVHG PHWKRGV 7KH\ VWDJHG SURWHVWV GHOLYHUHG SHWLWLRQV EXLOW EDUULFDGHV DQG RUJDQLVHG D QLJKW ZDWFK V\VWHP WR JXDUG WKH FRPPXQLW\ ,Q WKH ZRUGV RI D FRPPXQLW\ OHDGHU ZKHQ SRLQWLQJ RXW D EDUULFDGH LQ WKH PDLQ JDWH WR WKH VHWWOHPHQW ³7KH UHDVRQ ZH SXW XS WKLV EDUULFDGH LV WR SUHYHQW WKH %DQJNRN 0HWURSROLWDQ $GPLQLVWUDWLRQ IURP FRPLQJ LQWR RXU FRPPXQLW\ DQG GHVWUR\LQJ RXU KRXVHV 7KLV LV WKH RQO\ WKLQJ ZH FDQ GR WR SURWHFW RXUVHOYHV EHFDXVH WKH %0$ LV GHWHUPLQHG WR HYLFW XV DQG WKH\ FDQ FRPH LQ DW DQ\ WLPH ZLWK EXOOGR]HUV DQG RI¿FLDOV WR GR LW ´
BBBBBBBBBBBB
+HU]IHOG 0 µ3RP 0DKDNDQ +XPDQLW\ DQG 2UGHU LQ WKH +LVWRULF &HQWHU RI %DQJNRN¶ 7KDLODQG +XPDQ 5LJKWV -RXUQDO 9RO &2+5( 7DZDWFKDL :RUDPDKDNXQ &RPPXQLW\ /HDGHU 3RP 0DKDNDQ 4XRWH IURP 3RP 0DKDNDQ 3HRSOH RI WKH )RUW >$ VKRUW ¿OP E\ )LRQQ 6NLRWLV &2+5( DYDLODEOH RQ '9'@
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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³SDUN ZLWK SHRSOH´ WKH VRUW RI SODFH WKDW ZRXOG DWWUDFW YLVLWRUV UDWKHU WKDQ WKH VWHULOH HPSW\ SDUN SODQQHG E\ WKH DXWKRULWLHV 7KH UHVLGHQWV HYHQ VWDUWHG LPSOHPHQWLQJ DVSHFWV RI WKHLU SODQ E\ FUHDWLQJ PHDQGHULQJ SDWKZD\V DPRQJVW WKH EXLOGLQJV DQG DQFLHQW WUHHV DQG WXUQLQJ WKH ROGHVW KRXVH LQ WKH VHWWOHPHQW LQWR D PXVHXP DQG H[KLELWLRQ DUHD IRU WKHLU SURSRVDOV ,Q UHVSRQVH PDQ\ RXWVLGHUV UDOOLHG WR WKHLU VXSSRUW
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¿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¶V 2OGHVW +RXVH
%HIRUH GHPROLWLRQ
$IWHU GHPROLWLRQ
3KRWRV ZZZ %DQJNRN FRP
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
&XUUHQW VWDWXV RI WKH HYLFWLRQ SURFHVV 7KH PRVW UHFHQW UHSRUWV IURP 3RP 0DKDNDQ LQGLFDWH WKDW WKH RWKHU KRXVHV DUH VWLOO WKHUH DQG WKDW WKH SHRSOH VWLOO KROG RQ WR WKH KRSH WKDW VRPHKRZ WKH %DQJNRN 0HWURSROLWDQ $GPLQLVWUDWLRQ ZLOO FKDQJH LWV PLQG +RZHYHU WKH ODUJH YDFDQW DUHD WKDW KDG VHUYHG DV PHHWLQJ SODFH FDU SDUN DQG PDUNHW KDV EHHQ WXUQHG LQWR D PDQLFXUHG ODZQ ZLWK FRQFUHWH SDWKZD\V FORVHO\ UHVHPEOLQJ WKH ³JUDVV\ YRLG´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³, ZDQW WR VHQG WKLV PHVVDJH WR WKH %0$ WKH SHRSOH RI 3RP 0DKDNDQ KRSH WKH %0$ ZLOO WDNH FDUH RI WKHP WDNH WKHP LQWR DFFRXQW LQ LWV GHYHORSPHQW SODQV DQG DOORZ WKHP WR ZRUN ZLWK WKH %0$ LQ GHYHORSLQJ 3RP 0DKDNDQ , EHOLHYH WKDW LI WKH %0$ GRHV WDNH FDUH RI WKH FRPPXQLW\ DQG DOORZV WKH FRPPXQLW\ WR ZRUN ZLWK LW WKHQ WKHUH ZLOO EH ORWV RI JRRG LGHDV DQG VROXWLRQV ± QRW MXVW UHPRYLQJ SHRSOH IURP WKHLU FRPPXQLW\ %XW LI WKH %0$ IROORZV LWV RULJLQDO SODQ WR HYLFW WKH ORVV ZLOO EH PRUH VLJQL¿FDQW WKDQ WKH\ WKLQN , ORRN IRUZDUG WR DQ RIIHU IURP WKH %0$ WR DOORZ WKH FRPPXQLW\ WR ZRUN ZLWK WKHP LQ GHYHORSLQJ 3RP 0DKDNDQ ´
6LJQL¿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¿W DOO SDUWLHV LQFOXGLQJ WKH FRPPXQLW\ DQG SRWHQWLDOO\ PDQ\ RWKHU 7KDL FRPPXQLWLHV OLNH LW ,Q DGGLWLRQ WKH HPSKDVLV RI WKH %DQJNRN 0HWURSROLWDQ $GPLQLVWUDWLRQ RQ WKH HFRQRPLF LPSHUDWLYHV RI GHYHORSPHQW RYHU WKH SUHVHUYDWLRQ DQG SRWHQWLDO RI DQ XQLTXH XUEDQ FXOWXUDO ODQGVFDSH UHÃ&#x20AC;HFWV D VKRUW VLJKWHG DQDO\VLV RI XUEDQ GHYHORSPHQW UHTXLUHPHQWV LQ WKH VW FHQWXU\ ,I WKH DXWKRULWLHV IDLO WR WDNH WKH RSSRUWXQLW\ WKH ORVV FRXOG EH LPPHQVH $V *UDHPH %ULVWRO RI WKH .0877 $UFKLWHFWXUH 3URJUDP LQ %DQJNRN KDV ZDUQHG ³7KH %0$ KDV D UDWKHU QDUURZ YLHZ RI ZKDW FRQVWLWXWHV KLVWRU\ 7KH\ DUH QRW DORQH LQ WKDW $V D UHVXOW ZH RIWHQ ZLQG BBBBBBBBBBBB &2+5( 7DZDWFKDL :RUDPDKDNXQ &RPPXQLW\ /HDGHU 3RP 0DKDNDQ 4XRWH IURP 3RP 0DKDNDQ 3HRSOH RI WKH )RUW >$ VKRUW ¿OP E\ )LRQQ 6NLRWLV &2+5( DYDLODEOH RQ '9'@
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
XS ORVLQJ D ORW RI DQ\ FLW\¶V KLVWRU\ E\ GH¿QLQJ LW RXW RI H[LVWHQFH´ 7KH %DQJNRN 0HWURSROLWDQ $GPLQLVWUDWLRQ VWDQG WR ORVH DQ H[FHOOHQW RSSRUWXQLW\ WR ¿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
5HSRUWHG &DVH ±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
5HDVRQV JLYHQ IRU WKH HYLFWLRQ 7KH PRWLYDWLRQ IRU WKH HYLFWLRQV LV WKH GHYHORSPHQW RI WKH /\DUL ([SUHVVZD\ D PXOWL ODQH KLJKZD\ WR EH EXLOW DORQJ WKH /\DUL ULYHUEHG 3ODQV WR FRQVWUXFW D QHZ KLJKZD\ ZHUH RULJLQDOO\ GHYHORSHG WR LPSURYH DFFHVV WR WKH .DUDFKL 3RUW EXW DXWKRULWLHV KDYH VWDWHG WKDW KHDY\ WUDI¿F IURP WKH SRUW ZLOO QRW WUDYHO DORQJ WKH ([SUHVVZD\ 7KH LPSOHPHQWLQJ DJHQW IRU WKH HYLFWLRQV LV WKH 1DWLRQDO +LJKZD\ $XWKRULW\ $XWKRULWLHV KDYH DOVR DUJXHG WKDW WKH HYLFWLRQV LQYROYHG LQ WKH GHYHORSPHQW RI WKH KLJKZD\ DUH MXVWL¿DEOH EHFDXVH WKH\ ZLOO PRYH SHRSOH RXW RI DQ DUHD SURQH WR Ã&#x20AC;RRGLQJ (YLFWHHV ZLOO WKHQ EH UHORFDWHG WR VDIHU ]RQHV 0DQ\ FRPPHQWDWRUV EHOLHYH WKDW WKH SUHVHQW FHQWUDO *RYHUQPHQW LV ¿UPO\ FRPPLWWHG WR WKH SURMHFW GHVSLWH PDVVLYH RSSRVLWLRQ EHFDXVH WKH HYLFWLRQV ZLOO JLYH WKH *RYHUQPHQW DFFHVV WR YDOXDEOH UHDO HVWDWH 7KH\ QRWH LQ SDUWLFXODU WKDW DQ DUHD IDU JUHDWHU WKDQ WKDW UHTXLUHG IRU WKH SURMHFW LV EHLQJ FOHDUHG BBBBBBBBBBBB
%ULVWRO * 2FWREHU .0877 $UFKLWHFWXUH 3URJUDP %DQJNRN SHUVRQDO FRPPXQLFDWLRQ 7KH FXUUHQW H[FKDQJH UDWH LV 86 'ROODU 3DNLVWDQL 5XSHHV 0DUFK
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
0DLQ HYHQWV WKXV IDU DV UHSRUWHG WR $*)( 7KH /\DUL ([SUHVVZD\ SURMHFW ZDV ¿UVW SURSRVHG LQ E\ D JURXS RI FLWL]HQV DV DQ DOWHUQDWLYH WR SODQV GHYHORSHG LQ WR EXLOG D QHZ KLJKZD\ FDOOHG WKH 1RUWKHUQ %\SDVV +RZHYHU D JRYHUQPHQW IHDVLELOLW\ VWXG\ IRXQG WKDW RYHU SHRSOH ZRXOG KDYH WR EH HYLFWHG WR FRQVWUXFW WKH /\DUL ([SUHVVZD\ DQG WKHUHIRUH FRQFOXGHG WKDW WKH SURMHFW ZDV QRW YLDEOH 'HVSLWH WKLV FRQFOXVLRQ LQ WKH .DUDFKL 'HYHORSPHQW $XWKRULW\ .5$ VRXJKW DVVLVWDQFH IURP WKH &DQDGLDQ ,QWHUQDWLRQDO 'HYHORSPHQW $XWKRULW\ IRU WKH /\DUL ([SUHVVZD\ SURMHFW 7KH &DQDGLDQ ,QWHUQDWLRQDO 'HYHORSPHQW $XWKRULW\ DGYLVHG WKDW FRQVWUXFWLRQ RI DQ HOHYDWHG FRUULGRU DORQJ WKH ULYHUEHG DW DQ HVWLPDWHG FRVW RI 5V ELOOLRQ ZDV WKH EHVW RSWLRQ WR SXUVXH 7KH /\DUL 5LYHU KDG EHHQ SURQH WR Ã&#x20AC;RRGLQJ DQG DIWHU Ã&#x20AC;RRGV FDXVHG VLJQL¿FDQW GDPDJH GXULQJ -XO\ DQG $XJXVW DXWKRULWLHV EHJDQ WR UHJDUG WKH /\DUL SURMHFW DV D VROXWLRQ WR WKH SUREOHP RI Ã&#x20AC;RRGLQJ 1*2V LQFOXGLQJ .DUDFKL¶V 8UEDQ 5HVRXUFH &HQWUH 85& REMHFWHG WR WKH SURMHFW 7KH\ H[SUHVVHG VHULRXV FRQFHUQV UHODWLQJ ERWK WR HQYLURQPHQWDO LVVXHV DQG WR WKH VFDOH RI GLVSODFHPHQW WKDW ZRXOG EH FDXVHG 7KH 1*2V GHFLGHG WR WDNH DFWLRQ DJDLQVW WKH JRYHUQPHQW¶V SODQV 7KH\ LQIRUPHG DIIHFWHG FRPPXQLWLHV DERXW WKH SURMHFW DQG LWV OLNHO\ LPSDFW 7KHVH FRPPXQLWLHV WKHQ OREELHG WKHLU HOHFWHG UHSUHVHQWDWLYHV DQG JRYHUQPHQW RI¿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¿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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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
³5HVHWWOHPHQW LV D FXPEHUVRPH SURFHGXUH ,W WDNHV DW OHDVW VL[ PRQWKV WR JHW D SORW DOORWWHG 7KH DIIHFWHG IDPLOLHV KDYH WR UHQW D KRXVH DQG WKHQ JR WKURXJK WKH KDVVOH RI VKLIWLQJ WZLFH 7KH PHDJUH 5V SDLG DV WKH RYHUDOO FRPSHQVDWLRQ JHWV VSHQW LQ WKLV LQWHULP SHULRG 7KH JRYHUQPHQW IXQFWLRQDULHV PXVW EH NQRZLQJ LW DOO WRR ZHOO WKDW QRW HYHQ D SURSHU WRLOHW FDQ EH EXLOW LQ 5V OHW DORQH D KRXVH ´ 1RPDQ $KPHG ³/\DUL ([SUHVVZD\ KXPDQ VHWWOHPHQW LVVXHV´ LQ 'DZQ (FR %XV 5HYLHZ $SULO
(TXDOO\ VLJQL¿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
6HH IRU H[DPSOH µ/\DUL ([SUHVVZD\ 7KH .XZDLW 'HYHORSPHQW )XQG ZLOO SURYLGH IXQGLQJ IRU FRQWURYHUVLDO /\DUL ([SUHVVZD\ 3URMHFW¶ LQ 'DLO\ 'DZQ .DUDFKL )HEUXDU\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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µ$OO 3DUW\ &RQIHUHQFHV¶ $OO LQWHUHVWHG SDUWLHV LQFOXGLQJ JRYHUQPHQW RI¿FLDOV DQG SROLWLFLDQV ZHUH LQYLWHG DQG WKH HYHQWV UHFHLYHG VXEVWDQWLDO SUHVV FRYHUDJH 7KH ([SUHVVZD\ LVVXH KDV UHFHLYHG H[WHQVLYH SXEOLFLW\ 1*2V KDYH ZRUNHG WR LQIRUP WKH PHGLD E\ KROGLQJ SUHVV FRQIHUHQFHV DQG FRQGXFWLQJ WRXUV IRU MRXUQDOLVWV DURXQG WKH DIIHFWHG
3KRWR 8UEDQ 5HVRXUFH &HQWUH .DUDFKL
'HYDVWDWLRQ LQ WKH ZDNH RI DQ HYLFWLRQ /\DUL ([SUHVVZD\ .DUDFKL 0D\
FRPPXQLWLHV 0HGLD VXSSRUW IRU WKH DIIHFWHG FRPPXQLWLHV KDV EHHQ D NH\ IRUFH LQ RSSRVLQJ WKH HYLFWLRQV 7KLV PHGLD FRYHUDJH WRJHWKHU ZLWK 1*2 HIIRUWV WR OREE\ SURPLQHQW FLWL]HQV DQG SROLWLFDO SDUWLHV KDV VXFFHHGHG LQ PRELOLVLQJ EURDG FLYLO VRFLHW\ RSSRVLWLRQ WR WKH SURMHFW 7KH 85& KDV DOVR LQLWLDWHG RQJRLQJ VWXGLHV RQ WKH /\DUL SURMHFW DQG LWV LPSDFW RQ DIIHFWHG FRPPXQLWLHV ,Q DGGLWLRQ WR FRQGXFWLQJ FRPPXQLW\ VXUYH\V WKH 85& KDV DQDO\VHG WKH WHFKQLFDO DQG SODQQLQJ DVSHFWV RI WKH SURMHFW :LWK WKH DVVLVWDQFH RI RWKHU FRQFHUQHG SDUWLHV LW KDV SUHSDUHG WKUHH IXOO DOWHUQDWLYH SURSRVDOV WR WKH ([SUHVVZD\ )XUWKHUPRUH D VHULHV RI LQWHUQDWLRQDO LQWHUYHQWLRQV KDV ERRVWHG WKH FDPSDLJQ DJDLQVW WKH ([SUHVVZD\ 2Q -XO\ WKH 8QLWHG 1DWLRQV 6SHFLDO 5DSSRUWHXU RQ WKH 5LJKW WR $GHTXDWH +RXVLQJ 0LORRQ .RWKDUL VHQW D OHWWHU WR WKH 3UHVLGHQW RI 3DNLVWDQ ,Q KLV OHWWHU 0U .RWKDUL VWDWHG WKDW VHULRXV KXPDQ ULJKWV YLRODWLRQV DSSHDUHG WR KDYH EHHQ FRPPLWWHG GXULQJ WKH LPSOHPHQWDWLRQ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
RI WKH SURMHFW DQG DVNHG WKH *RYHUQPHQW WR VXVSHQG DOO IRUFHG HYLFWLRQV RI SHRSOH OLYLQJ DORQJ WKH /\DUL 5LYHU LPPHGLDWHO\ 0U .RWKDUL DOVR H[SUHVVHG FRQFHUQ WKDW WKH *RYHUQPHQW ZDV RQO\ SODQQLQJ WR UHVHWWOH DQG FRPSHQVDWH D IUDFWLRQ RI WKH HYLFWHHV ,Q DGGLWLRQ KH ZDV FULWLFDO RI WKH IDFW WKDW UHVHWWOHPHQW VLWHV ODFNHG VXI¿FLHQW LQIUDVWUXFWXUH DQG ZHUH ORFDWHG RXWVLGH WKH FLW\ ORQJ GLVWDQFHV IURP HYLFWHHV¶ SODFHV RI ZRUN +H DOVR IRXQG WKDW HYLFWHHV ZHUH QRW JLYHQ DGHTXDWH QRWLFH RI WKH HYLFWLRQV QRU LQIRUPDWLRQ DERXW WKH SURMHFW $IWHU UHFHLYLQJ D UHTXHVW IURP WKH 85& WKH $VLDQ &RDOLWLRQ IRU +RXVLQJ 5LJKWV $&+5 DQG +DELWDW ,QWHUQDWLRQDO &RDOLWLRQ RUJDQLVHG DQ LQWHUQDWLRQDO IDFW ¿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¿FH )DUD] D \HDU ROG SKLORVRSK\ VWXGHQW DW WKH 8QLYHUVLW\ RI .DUDFKL KDG EHHQ WRUWXUHG EHIRUH EHLQJ PXUGHUHG 1*2 DFWLYLVWV DQG UHSUHVHQWDWLYHV RI WKH /\DUL FRPPXQLWLHV DUH FRQYLQFHG WKDW WKLV EUXWDO NLOOLQJ ZDV PHDQW DV D SXQLVKPHQW DQG ZDUQLQJ WR %DVHHU IRU KLV DFWLRQV LQ RSSRVLQJ WKH /\DUL ([SUHVVZD\ SURMHFW $W D PHHWLQJ KHOG RQ 1RYHPEHU DW WKH RI¿FHV RI WKH +XPDQ 5LJKWV &RPPLVVLRQ IRU 3DNLVWDQ FLYLO VRFLHW\ RUJDQLVDWLRQV GHPDQGHG WKDW DQ LQTXLU\ LQWR WKH GHDWK RI )DUD] EH FRQGXFWHG E\ D MXGJH RI WKH 6LQGK +LJK &RXUW 7R GDWH QR VXFK LQTXLU\ KDV EHHQ LQLWLDWHG $IWHU )DUD]¶V PXUGHU KLV SDUHQWV UHFHLYHG IXUWKHU WKUHDWV RYHU WKH WHOHSKRQH 4XLWH XQGHUVWDQGDEO\ KLV PRWKHU QRZ ZLVKHV WR OHDYH 3DNLVWDQ ZLWK KHU WZR VXUYLYLQJ FKLOGUHQ 6KH LV DIUDLG WKDW WKH\ WRR PLJKW EH PXUGHUHG 7KH DQWL ([SUHVVZD\ DFWLYLVWV OLYLQJ LQ WKH VHWWOHPHQWV DUH DOVR WHUURULVHG EXW KDYH LQGLFDWHG WKHLU UHVROYH WR FRQWLQXH WKHLU VWUXJJOH WR VDYH WKHLU KRPHV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
,PSOHPHQWDWLRQ RI WKH /\DUL ([SUHVVZD\ SURMHFW FRQWLQXHV GHVSLWH D 6LQGK +LJK &RXUW RUGHU WR WKH 1DWLRQDO +LJKZD\ $XWKRULW\ WKH JRYHUQPHQW RI 6LQGK DQG WKH &LW\ 'LVWULFW *RYHUQPHQW RI .DUDFKL WR UHYLHZ WKH GHVLJQ RI WKH SURMHFW VR DV WR PLQLPL]H WKH QXPEHU RI SHRSOH WR EH DIIHFWHG 'HVSLWH WKH &RXUW 2UGHU DERXW PRUH KRPHV KDYH EHHQ GHPROLVKHG LQ WKH SDVW IHZ PRQWKV
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¿F FRQJHVWLRQ DFURVV .DUDFKL $OWHUQDWLYH 5HGHYHORS ([LVWLQJ $FFHVV 5RDGV 7KH 85& SURSRVHG WKLV SODQ ZKLFK ZRXOG WDNH WZR \HDUV WR FRPSOHWH DQG ZRXOG FRVW DSSUR[LPDWHO\ 86 PLOOLRQ 1R HYLFWLRQV ZRXOG EH UHTXLUHG ,I WKLV SURMHFW ZHUH WR SURFHHG H[LVWLQJ WUDI¿F FRQJHVWLRQ LQ .DUDFKL ZRXOG EH UHPRYHG $OWHUQDWLYH $OWHUDWLRQV WR WKH /\DUL ([SUHVVZD\ 3ODQ 0XKDPPDG 6KRDLE ,VPDLO D ORFDO HQJLQHHU IURP 3ODQQLQJ (QJLQHHULQJ DQG 6HUYLFHV &RQVXOWDQWV SURSRVHG WKHVH DOWHUDWLRQV WR WKH FXUUHQW /\DUL SODQ ZLWK WKH VXSSRUW RI WKH 85& ,I WKH DOWHUDWLRQV ZHUH DGRSWHG WKH ([SUHVVZD\ ZRXOG FRVW 86 PLOOLRQ DQG WDNH WZR \HDUV WR EXLOG 1R HYLFWLRQV ZRXOG EH UHTXLUHG
5HSRUWHG &DVH ±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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
RQ WKH LVVXHV RI VOXP XSJUDGLQJ DQG IRUFHG HYLFWLRQV 7KHVH DUH YHU\ SRVLWLYH GHYHORSPHQWV ZKLFK ERGH ZHOO IRU FRQVWUXFWLYH SDUWLFLSDWLRQ E\ $*)( DQG LWV PHPEHUV LQ WKH SURFHVV RI ¿QGLQJ ODVWLQJ VROXWLRQV WR WKH SUREOHP +RZHYHU WKH VXVSHQVLRQ XQIRUWXQDWHO\ FDPH WRR ODWH IRU IDPLOLHV LQ 5DLOD 9LOODJH ZKR ZHUH HYLFWHG IURP WKHLU KRPHV LQ )HEUXDU\ )XUWKHUPRUH ZKLOH WKH *RYHUQPHQW¶V VXVSHQVLRQ RI WKH SODQQHG 1DLUREL HYLFWLRQV LV VWLOO LQ SODFH UHVLGHQWV KDYH QR ¿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
%DFNJURXQG DQG KLVWRU\ RI WKH FDVH 7KHUH DUH FXUUHQWO\ LQIRUPDO VHWWOHPHQWV LQ 1DLUREL ZKLFK DUH KRPH WR RYHU WZR PLOOLRQ SHRSOH 5HVLGHQWV RI 1DLUREL¶V LQIRUPDO VHWWOHPHQWV FRQVWLWXWH DSSUR[LPDWHO\ RI WKH FLW\¶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¿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µIHH¶ WR WKH ORFDO DGPLQLVWUDWLRQ LQFOXGLQJ FKLHIV ZD]HH ZD YLMLML YLOODJH HOGHUV DQG WKH SROLFH LQ H[FKDQJH IRU µRI¿FLDO SHUPLVVLRQ¶ WR RFFXS\ WKH VSDFH ZKHUH WKH\ OLYH 7KHVH LUUHJXODU DOORFDWLRQV E\ WKH BBBBBBBBBBBB
6HH IRU H[DPSOH WKH HGLWRULDO LQ 7KH 1DWLRQ 0DUFK ³2QH RI WKH FKDOOHQJHV WKH DGPLQLVWUDWLRQ KDV EHHQ JUDSSOLQJ ZLWK LV KRZ WR HYLFW SHRSOH OLYLQJ LQ IRUHVWV ,Q WKH ODWHVW FDVH VRPH SHRSOH KDYH EHHQ HYLFWHG IURP (QRRVXSXNLD IRUHVW LQ WKH SDVW IHZ GD\V 7KH FDPSDLJQ LV WKHQ H[SHFWHG WR PRYH WR RWKHU IRUHVWV OLNH 0DX ´
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
ORFDO DGPLQLVWUDWLRQ DUH QRUPDO EXVLQHVV SUDFWLFHV LQ WKH LQIRUPDO VHWWOHPHQWV $V UHFHQWO\ DV )HEUXDU\ .HQ\D 5DLOZD\V LVVXHG UHFHLSWV IRU µUHQW¶ SDLG E\ SHRSOH RFFXS\LQJ SORWV ORFDWHG RQ WKH UDLO OLQH RSHUDWLRQDO FRUULGRUV 3HRSOH KDYH RFFXSLHG VSDFH QHDU WKH UDLO OLQH DQG XQGHU SRZHU OLQHV IRU GHFDGHV ZLWK WKH IXOO NQRZOHGJH DQG VDQFWLRQ RI WKH *RYHUQPHQW ,Q DGGLWLRQ 81 +DELWDW KDV XQGHUWDNHQ WR VXSSRUW VOXP XSJUDGLQJ LQ WKH 1DLUREL VOXPV $IWHU DQ LQLWLDO DJUHHPHQW ZLWK WKH IRUPHU JRYHUQPHQW WKH ([HFXWLYH 'LUHFWRU RI 81 +DELWDW HQWHUHG LQWR DQ RI¿FLDO 0HPRUDQGXP RI 8QGHUVWDQGLQJ ZLWK WKH 0LQLVWU\ RI 5RDGV 3XEOLF :RUNV DQG +RXVLQJ LQ -DQXDU\ 7KH DJUHHPHQW ZDV ZLGHO\ SXEOLFL]HG DQG KDLOHG DV D SRVLWLYH VWHS IRUZDUG LQ LPSURYLQJ WKH FRQGLWLRQV RI WKH LQIRUPDO VHWWOHPHQWV 7KLV FRPELQHG *RYHUQPHQW DQG 81 +DELWDW SURMHFW LV VSHFL¿FDOO\ GHVLJQHG WR LPSURYH WKH KRXVLQJ DQG LQIUDVWUXFWXUH RI WKH 6RZHWR YLOODJH LQ .LEHUD 6LQFH WKH VLJQLQJ RI WKDW DJUHHPHQW KRZHYHU WKH SURMHFW KDV EHHQ FKDUDFWHUL]HG E\ FRQIXVLRQ FDXVHG E\ D ODFN RI LQIRUPDWLRQ DQG FRQVXOWDWLRQ $Q DSSDUHQW ODFN RI FRRUGLQDWHG WKLQNLQJ E\ WKH *RYHUQPHQW KDV IUXVWUDWHG LQLWLDO JRRG LQWHQWLRQV WKDW DUH QRZ PDUUHG ZLWK SODQV IRU IRUFHG HYLFWLRQV E\ GLIIHUHQW 0LQLVWULHV LQ WKH YHU\ DUHD WKDW ZDV WR EH UHJHQHUDWHG $ µVHFXUH WHQXUH ]RQH¶ IRU 6RZHWR KDV DOVR QRW EHHQ GHFODUHG RU HQIRUFHG GHVSLWH LW EHLQJ D NH\ SDUW RI WKH SURMHFW¶V GRFXPHQWDWLRQ )XUWKHU D 1DWLRQDO 6OXP 8SJUDGLQJ 3ROLF\ ± SDUW RI WKH 3URMHFW¶V LQWHQGHG LQFHSWLRQ SKDVH ± ZDV QRW DQQRXQFHG 7KLV KDV PHDQW WKHUH DUH QR FOHDU DQG WUDQVSDUHQW JXLGHOLQHV IRU VOXP XSJUDGLQJ ZKLFK KDV FRPSRXQGHG WKH FRQIXVLRQ DQG IHDUV RI GLVSODFHPHQW
7KH OHJDO JURXQGV RI WKH FDVH DJDLQVW HYLFWLRQV 7KH WKUHDWHQHG HYLFWLRQV DUH LQ FRQWUDYHQWLRQ RI x 7KH ,QWHUQDWLRQDO &RQYHQWLRQ RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV DUW H VLJQHG E\ .HQ\D RQ -DQXDU\ DV ZHOO DV WKH +DELWDW $JHQGD DQG $JHQGD ZKLFK SURYLGH IRU WKH REOLJDWLRQ WR ¿QG DOWHUQDWLYH VROXWLRQV ZKHQ HYLFWLRQV DUH XQDYRLGDEOH x 7KH &KLOGUHQ¶V $FW x 7KH 5DLOZD\V &RUSRUDWLRQ $FW
2QJRLQJ DQG WKUHDWHQHG HYLFWLRQV 7KH 0LQLVWU\ RI 5RDGV 3XEOLF :RUNV DQG +RXVLQJ KDV DOUHDG\ HIIHFWHG GHPROLWLRQV LQ .LEHUD DV SDUW RI WKH FRQVWUXFWLRQ RI D FLW\ E\SDVV 2Q 6XQGD\ )HEUXDU\ WUDFWRUV GHPROLVKHG WKH VHWWOHPHQW FRPPRQO\ UHIHUUHG WR DV µ5DLOD 9LOODJH¶ $SSUR[LPDWHO\ VWUXFWXUHV ZHUH GHPROLVKHG LQFOXGLQJ VFKRROV FOLQLFV DQG FKXUFKHV 7KLV VLQJOH HYLFWLRQ KDV OHG WR WKH LQWHUQDO GLVSODFHPHQW RI DSSUR[LPDWHO\ SHRSOH ,W KDV DOVR FDXVHG SURSHUW\ ORVVHV ZRUWK PLOOLRQV RI VKLOOLQJV &RQWUDU\ WR HVWDEOLVKHG LQWHUQDWLRQDO QRUPV UHVLGHQWV RI 5DLOD 9LOODJH ZHUH QRW JLYHQ DQ\ GHPROLWLRQ QRWLFHV ,Q IXUWKHU YLRODWLRQ RI ODZ WKH FRPPXQLW\ ZDV QRW FRQVXOWHG QRU JLYHQ D UHVHWWOHPHQW SODQ ,QVWHDG RI WDNLQJ VWHSV WR LQIRUP DQG LQYROYH WKH FRPPXQLW\ RUGHUV ZHUH LVVXHG WR WKH 3URYLVLRQDO $GPLQLVWUDWLRQ WR WDNH DOO VWHSV QHFHVVDU\ WR FOHDU WKH YLOODJH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
3KRWR &KULVW WKH .LQJ &DWKROLF &KXUFK /LQH 6DED .LEHUD
'HPROLWLRQ RI 5DLOD 9LOODJH .LEHUD )HEUXDU\
,Q DGGLWLRQ WR WKH GHPROLWLRQ RI 5DLOD 9LOODJH WKHUH KDYH EHHQ QXPHURXV DQQRXQFHPHQWV PHHWLQJV DQG SUHVV VWDWHPHQWV RYHU WKH ODVW IHZ PRQWKV LQGLFDWLQJ WKDW GLIIHUHQW JRYHUQPHQW 0LQLVWULHV ZLOO XQGHUWDNH GHPROLWLRQV DQG HYLFWLRQV LQ GHVLJQDWHG VOXP DUHDV ZLWKLQ 1DLUREL 7KHVH GHPROLWLRQV HVVHQWLDOO\ SHUWDLQ WR VWUXFWXUHV ORFDWHG LQ WKUHH PDLQ DUHDV Â&#x2021; ZLWKLQ IHHW RI HLWKHU VLGH RI WKH UDLO OLQH Â&#x2021; XQGHU SRZHU OLQHV DQG Â&#x2021; WKH DUHD HDUPDUNHG IRU WKH QHZ URDG E\SDVVHV (IIHFW RI GHPROLWLRQV E\ WKH .HQ\D 5DLOZD\V &RUSRUDWLRQ 2Q -DQXDU\ WKH .HQ\D 5DLOZD\V &RUSRUDWLRQ LVVXHG QRWLFH LQ WKH GDLO\ SDSHUV WKDW LW LQWHQGHG WR GHPROLVK DOO VWUXFWXUHV ORFDWHG ZLWKLQ IHHW RQ HLWKHU VLGH RI WKH UDLOZD\ OLQH LQ .LEHUD VWDUWLQJ RQ 0DUFK 7KH UDLO OLQH LV ¿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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
(IIHFW RI GHPROLWLRQV E\ WKH .HQ\D 3RZHU /LJKWLQJ &R /WG 2Q )HEUXDU\ WKH .HQ\D 3RZHU /LJKWLQJ &R /WG .3/& LVVXHG QRWLFH WKDW LW ZRXOG GHPROLVK DOO VWUXFWXUHV ORFDWHG RQ .3/&¶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¿IW\ IRXU FKXUFKHV KDYH EHHQ HDUPDUNHG IRU GHPROLWLRQ ,Q DGGLWLRQ WKLUWHHQ SULPDU\ VFKRROV ZLOO EH GHPROLVKHG DV ZHOO DV WKUHH PHGLFDO FOLQLFV DQG WZR FRPPXQLW\ FHQWUHV 5HVSRQVHV RI WKH DIIHFWHG FRPPXQLWLHV 7KH LQWHQGHG GHPROLWLRQV KDYH FDXVHG IHDU SDQLF DQG FRQIXVLRQ DPRQJ WKH DIIHFWHG FRPPXQLWLHV ± SDUWLFXODUO\ DV PDQ\ SHRSOH ZHUH QRW JLYHQ RI¿FLDO QRWLFH RU WKH DFWXDO SDUDPHWUHV DQG GDWHV IRU WKH HYLFWLRQV ,Q .LEHUD IRU H[DPSOH FKLHIV DQG WKH 3URYLQFLDO $GPLQLVWUDWLRQ ZKR DUH WR HIIHFW WKH HYLFWLRQV GR QRW KDYH PDSV WR LGHQWLI\ ZKLFK VWUXFWXUHV DUH HDUPDUNHG IRU GHPROLWLRQ $V D UHVXOW QR RQH NQRZV ZLWK FHUWDLQW\ LI DQG ZKHQ WKH\ DUH OLNHO\ WR EH HYLFWHG 7KLV ODFN RI LQIRUPDWLRQ KDV FUHDWHG D YDFXXP WKDW KDV EHHQ ¿OOHG E\ UXPRXU PLOOV VSHFXODWLRQ DQG H[SORLWDWLRQ RIWHQ E\ ORFDO SROLWLFLDQV 1RWZLWKVWDQGLQJ WKH LQIRUPDWLRQ EODFNRXW FRPPXQLWLHV LPPHGLDWHO\ EHJDQ WR RUJDQL]H WKHPVHOYHV WR UHVLVW WKH IRUFHG HYLFWLRQV DQG WR UHTXHVW DQ RSSRUWXQLW\ IRU GLDORJXH ZLWK WKH *RYHUQPHQW DV D PHDQV RI VHHNLQJ DQ DOWHUQDWLYH WR WKH SODQQHG HYLFWLRQV ,Q .LEHUD UHOLJLRXV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
OHDGHUV UHTXHVWHG DQG ZHUH JUDQWHG D PHHWLQJ ZLWK WKH 'LVWULFW 2I¿FHU RQ )HEUXDU\ ,Q DGGLWLRQ DQ RQJRLQJ VLJQDWXUH FDPSDLJQ ZDV ODXQFKHG WR FROOHFW VLJQDWXUHV WR SURWHVW WKH HYLFWLRQV 7KH FRPPXQLWLHV DOVR VXFFHVVIXOO\ RUJDQLVHG D SUD\HU UDOO\ RQ 0DUFK ZKLFK ZDV OHG E\ &DWKROLF $UFKELVKRS 5DSKDHO 1GLQJL 0ZDQD µD 1]HNL DQG D UHSUHVHQWDWLYH RI WKH $QJOLFDQ &KXUFK ,Q KLV SUD\HU WKH &DWKROLF $UFKELVKRS DVNHG *RG WR JUDQW WKH JRYHUQPHQW JUDFH WR ¿JKW WKH VOXPV DQG QRW VOXP GZHOOHUV ,Q .LEHUD RYHU HLJKW\ UHVLGHQWV OLYLQJ RQ WKH UDLO OLQH RSHUDWLRQDO FRUULGRU KDYH ¿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¶V $FW DQG LQWHUQDWLRQDO SURFHGXUHV ZKLFK SURKLELW IRUFHG DQG DUELWUDU\ HYLFWLRQV +RZHYHU LQ DQRWKHU FDVH LQ /XJDUL 'LVWULFW 6DPRHL .LUZD DQG RWKHUV YV .HQ\D 5DLOZD\V &RUSRUDWLRQ D +LJK &RXUW JUDQWHG D WHPSRUDU\ LQMXQFWLRQ DKHDG RI D IXOO KHDULQJ RI WKH LVVXH RQ WKH IROORZLQJ EDVLV ³7KH SODLQWLIIV >UHVLGHQWV@ DUH OLNHO\ WR HVWDEOLVK WKDW WKH QRWLFH ZDV LVVXHG XQSURFHGXUDOO\ DQG XQODZIXOO\ 7KH\ DUH DOVR OLNHO\ WR HVWDEOLVK DW WKH KHDULQJ RI VXLW WKDW WKH QRWLFH ZDV DUELWUDU\ DQG XQUHDVRQDEO\ LQDGHTXDWH ´
7KH MXGJH DOVR FRPPHQWHG ³7KH RWKHU PDWWHU ZKLFK KDV VWUXFN P\ DWWHQWLRQ LV WKDW WKH FRQGXFW RI WKH GHIHQGDQW KDV QRW EHHQ LPSUHVVLYH 7KH\ KDYH DOORZHG WKH SODLQWLIIV WR RFFXS\ LWV ODQG IRU D SHULRG RI RYHU \HDUV ZLWKRXW UHPRYLQJ WKHP :K\ ZRXOG LW QRZ JLYH VXFK FLWL]HQV D GD\V QRWLFH WR UHPRYH ZKDW WKH\ KDYH LQYHVWHG IRU VXFK D OHQJWK RI WLPH" :K\ KDV WKH GHIHQGDQW IDLOHG WR FRPSO\ ZLWK 6HFWLRQ RI WKH .HQ\D 5DLOZD\V &RUSRUDWLRQ $FW"´
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¿JKW SRYHUW\ DQG QRW WKH SRRU DQG WR VWRS VOXP HYLFWLRQV 7KH\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
SRLQWHG RXW WKDW SURFHGXUHV IRU FDUU\LQJ RXW MXVWL¿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¿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¿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
&HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5(
6KDFN 'ZHOOHUV ,QWHUQDWLRQDO 6',
7KH ,QWHUQDWLRQDO $OOLDQFH RI ,QKDELWDQWV WRJHWKHU ZLWK WKH .XWRND 1HWZRUN RI 3DULVKHV LQ WKH LQIRUPDO VHWWOHPHQWV DQG ZLWK VXSSRUW IURP SHUVRQDJHV VXFK DV $EEp 3LHUUH ODXQFKHG DQ LQWHUQDWLRQDO VROLGDULW\ FDPSDLJQ WKDW LQ RQO\ D IHZ ZHHNV KDG JDWKHUHG PRUH WKDQ VXSSRUWHUV IURP DOO RYHU WKH ZRUOG ZKR WDUJHWHG WKH H PDLOV RI DSSUR[LPDWHO\ LQVWLWXWLRQDO VWUXFWXUHV UHTXHVWLQJ WKH IROORZLQJ 7KH .HQ\D *RYHUQPHQW DQG WKH 1DLUREL 0D\RU x 7R FRPSO\ ZLWK WKH REOLJDWLRQV VWDWHG E\ WKH ,QWHUQDWLRQDO &RQYHQWLRQ RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV x 7R LPPHGLDWHO\ HQG DOO GHPROLWLRQV DQG IRUFHG HYLFWLRQV x 7R RSHQ D UHDO GHEDWH ZLWK DOO FRQFHUQHG FRPPXQLWLHV LQ RUGHU WR ¿QG DFFHSWDEOH VROXWLRQV RQ OLPLWLQJ HYLFWLRQV UHDFKLQJ DQ DJUHHPHQW RQ SRVVLEOH UHORFDWLRQV JUDQWLQJ VXLWDEOH FRPSHQVDWLRQV WR WKH HYLFWHG x 7R GHYHORS D QHZ SXEOLF KRXVLQJ DQG XUEDQ SROLF\ VWDUWLQJ IURP WKH SURWHFWLRQ RI KRXVLQJ ULJKWV RI DOO KRXVLQJ VHFXULW\ SODQQLQJ XUEDQ UHQRYDWLRQ VDQLWDWLRQ
x x x
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
7R DSSRLQW D FRRUGLQDWHG DQG LPSDUWLDO ERG\ WR EH UHVSRQVLEOH IRU RUGHUO\ DQG SHDFHIXO HYLFWLRQV 7R DSSRLQW DQ ,QWHU 0LQLVWHULDO FRQVXOWDWLYH JURXS WR FRRUGLQDWH DOO SODQV UHODWHG WR HYLFWLRQV DQG GHPROLWLRQV WKDW ZLOO WDNH SODFH LQ WKH LQIRUPDO VHWWOHPHQWV 7R SURYLGH LPPHGLDWH DVVLVWDQFH WR DOO WKRVH DOUHDG\ HYLFWHG
7KH (XURSHDQ &RPPLVVLRQ *RYHUQPHQWV DQG (XURSHDQ %DQN RI ,QYHVWPHQWV x 7R GLVFRQWLQXH DQ\ IXQGLQJ WR .HQ\D PHDQW WR EXLOG LQIUDVWUXFWXUHV UHODWHG WR IRUFHG GHPROLWLRQV DQG HYLFWLRQV LI FRQGLWLRQV HDUOLHU VWDWHG DUH QRW UHVSHFWHG 81 +DELWDW x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Ã&#x20AC;DJUDQW YLRODWLRQ RI WKH LQWHUQDWLRQDO ODZV WR ZKLFK .HQ\D LV D VLJQDWRU\ &LWLQJ *HQHUDO &RPPHQW RI WKH &RYHQDQW RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV KH VSHFL¿FDOO\ VWDWHG WKDW ³, DP FRQFHUQHG WKDW WKH *RYHUQPHQW LV QRW IROORZLQJ DQ DGHTXDWH SURFHGXUH NHHSLQJ LQ PLQG WKH KXPDQ ULJKWV RI WKRVH DIIHFWHG E\ WKHVH HYLFWLRQV WKHUHE\ LPSDFWLQJ RQ PDQ\ LQQRFHQW IDPLOLHV DQG LQGLYLGXDOV 7KHUH LV QHHG IRU D FOHDU HYLFWLRQV SROLF\ DQG HYHQ VSHFL¿F OHJLVODWLRQ LQ WKLV UHJDUG 0HDQZKLOH WKHUH VKRXOG EH D PRUDWRULXP SODFHG RQ GHPROLWLRQV DQG HYLFWLRQV ,Q DGGLWLRQ DQG WKH ORFDO DGPLQLVWUDWLRQ DQG DXWKRULWLHV PXVW UHIUDLQ IURP DJJUDYDWLQJ WKH VLWXDWLRQ E\ IXUWKHU SDUWLFLSDWLQJ LQ PDOSUDFWLFHV WKDW KDYH FRQWULEXWHG WR WKLV FULVLV ´
&HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV 7KH &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( VHQW FRUUHVSRQGHQFH WR WKH 3UHVLGHQW RI .HQ\D DQG WKH UHOHYDQW 0LQLVWHUV RQ )HEUXDU\ VWDWLQJ WKDW WKH WKUHDWHQHG PDVV HYLFWLRQV LQ .HQ\D ZHUH ³D YLRODWLRQ RI LQWHUQDWLRQDO KXPDQ ULJKWV ODZ DQG LQ SDUWLFXODU WKH ULJKW WR DGHTXDWH KRXVLQJ ´ 7KH\ IXUWKHU VWDWHG WKDW ³H[DPSOHV IURP DOO RYHU WKH ZRUOG KDYH VKRZQ WKDW WKH VRFLDO DQG HFRQRPLF FRVW RI IRUFHG HYLFWLRQV LQFOXGHV GHHSHU SRYHUW\ UHGXFHG OHYHOV RI HPSOR\PHQW DQG ORZHU KHDOWK VWDQGDUGV ´ &2+5( VWURQJO\ XUJHG WKH *RYHUQPHQW RI .HQ\D WR DELGH E\ LWV OHJDO REOLJDWLRQV ZKLFK UHTXLUHG WKH JRYHUQPHQW WR ³H[SORUH DOO IHDVLEOH
BBBBBBBBBBBB
.RWKDUL 0 6SHFLDO 5DSSRUWHXU RQ $GHTXDWH +RXVLQJ 5HSRUW RQ 0LVVLRQ WR .HQ\D 81&+5
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
DOWHUQDWLYHV WR WKH HYLFWLRQV WKDW QR SHUVRQ EH UHQGHUHG KRPHOHVV DQG WKDW WKHUH EH JHQXLQH FRQVXOWDWLRQ ZLWK WKRVH DIIHFWHG´ $ UHSRUW SURGXFHG E\ &2+5( WLWOHG µ/LVWHQLQJ WR WKH 3RRU" +RXVLQJ 5LJKWV LQ 1DLUREL .HQ\D¶ FRPSUHKHQVLYHO\ DQDO\VHV WKH HYLFWLRQ WKUHDWV LQ .LEHUD DQG RWKHU VHWWOHPHQWV 7KH UHSRUW DOVR x x
x x
([DPLQHV DEXVHV E\ RI¿FLDOV DQG ODUJH VWUXFWXUH RZQHUV LQ WKH LQIRUPDO VHWWOHPHQWV DQG QRWHV WKH ODFN RI HIIHFWLYH SURWHFWLRQ IRU UHVLGHQWV &ULWLFDOO\ DQDO\VHV WKH 6RZHWR VOXP XSJUDGLQJ SURMHFW LQ .LEHUD DQG WKH QHHG IRU D 1DWLRQDO 6OXP 8SJUDGLQJ 3ROLF\ WKDW ZLOO HQDEOH RWKHU VHWWOHPHQWV WR VWDUW XSJUDGLQJ SDUWLFXODUO\ WKRVH ZLWK VWURQJ FRPPXQLW\ DVVRFLDWLRQV 1RWHV WKDW .HQ\D¶V KRXVLQJ SROLF\ RI DOORFDWLQJ IXUWKHU SDUFHOV RI VHUYLFHG ODQG WR FRSH ZLWK WKH EXUJHRQLQJ XUEDQ SRSXODWLRQ KDV QRW EHHQ LPSOHPHQWHG 'HPRQVWUDWHV WKH QHHG IRU WKH 0LQLVWU\ RI /DQGV DQG +RXVLQJ WR VHW D GDWH IRU WKH HVWDEOLVKPHQW RI WKH LQVWLWXWLRQV UHTXLUHG WR LPSOHPHQW WKH 1GXQJ¶X /DQG 5HSRUW UHFRPPHQGDWLRQV IRU WKH UHWULHYDO RI LUUHJXODUO\ DQG LOOHJDOO\ DOORFDWHG SXEOLF ODQG VLQFH DOORFDWLRQV RI SXEOLF ODQG IRU VSHFXODWLYH XVH DUH FRQWLQXLQJ IRU H[DPSOH LQ .LDPELX
7KH &2+5( 5HSRUW KDV UHFRPPHQGDWLRQV GLUHFWHG WR WKH .HQ\DQ JRYHUQPHQW LQFOXGLQJ 8UJHQW $FWLRQ SRLQWV x x x x x x x x x x x
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¿FLDOO\ GHFODUH 6RZHWR .LEHUD D µWHQXUH VHFXUH ]RQH¶ IRU WKH .(1683 SURMHFW DQG HQVXUH SURSHU UHSUHVHQWDWLRQ RI WHQDQWV &DUU\ RXW HDUO\ VRFLDO LPSDFW DVVHVVPHQWV IRU DOO PDMRU GHYHORSPHQW SURMHFWV ,QFUHDVH DFFRXQWDELOLW\ RI 3URYLQFLDO $GPLQLVWUDWLRQ WR ORFDO FRPPXQLWLHV (VWDEOLVK HIIHFWLYH DQG OHJDO PHFKDQLVPV WR HQIRUFH WHPSRUDU\ EDQ RQ VDOH RI XQGHYHORSHG ODQGV
7KH UHSRUW PDGH WKH IROORZLQJ UHFRPPHQGDWLRQV WR %LODWHUDO DJHQFLHV WKH :RUOG %DQN FRUSRUDWLRQV DQG 1*2V %DQN 81 &RPSDQLHV DQG 1*2V x %LODWHUDO DJHQFLHV $GRSW LQ FRXQWU\ SROLFLHV WR SUHYHQW IRUFHG HYLFWLRQV WKURXJK IXQGHG SURMHFWV BBBBBBBBBBBB
/HWWHU IURP &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV WR WKH 3UHVLGHQW RI .HQ\D )HEUXDU\ IRU FRS\ VHH KWWS ZZZ FRKUH RUJ NHQ\D
x x x
x
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
:RUOG %DQN (QJDJH ZLWK FLYLO VRFLHW\ RQ SURMHFWV WKDW PD\ UHVXOW LQ HYLFWLRQV 81 +DELWDW &RQVLGHU ZRUNLQJ ZLWK JRYHUQPHQW WR UHGHVLJQ .LEHUD SURMHFW %LODWHUDO DJHQFLHV DQG FRUSRUDWLRQV 3URYLGH JUDQWV WR WKH SURSRVHG µ6OXP 8SJUDGLQJ DQG /RZ &RVW +RXVLQJ DQG ,QIUDVWUXFWXUH )XQG¶ WR EH RSHUDWHG DV D WUXVW E\ 0LQLVWU\ RI /DQGV DQG +RXVLQJ 1*2V :RUN WRJHWKHU WR HPSRZHU FRPPXQLWLHV LQ LQIRUPDO VHWWOHPHQWV DQG GHYHORS HIIHFWLYH FRPPXQLW\ UHSUHVHQWDWLYH PHFKDQLVPV
8SRQ WKH SXEOLF UHOHDVH RI WKH &2+5( UHSRUW WKH .HQ\D 1DWLRQDO &RPPLVVLRQ RQ +XPDQ 5LJKWV FRPPLWWHG LWVHOI WR OREE\LQJ IRU JXLGHOLQHV RQ HYLFWLRQV SDUWLFXODUO\ LQ OLJKW RI UHFHQW HYLFWLRQV LQ IRUHVW DQG UXUDO DUHDV 2QH RI WKH ¿UVW LQLWLDWLYHV RI WKH &RPPLVVLRQ KDV EHHQ WR RUJDQLVH D RQH GD\ PHHWLQJ RI H[SHUWV DQG JRYHUQPHQW RI¿FLDOV DQG FLYLO VRFLHW\ VWDNHKROGHUV WR DVVLVW WKHP GUDIW D JXLGHOLQH RQ SUHYHQWLRQ RI IRUFHG HYLFWLRQV 7KH PHHWLQJ KDV EHHQ VHW IRU HDUO\ $SULO 3DPRMD 7UXVW 7KH 3DPRMD 7UXVW D ORFDO 1*2 ZKLFK ZRUNV FORVHO\ ZLWK ORFDO FRPPXQLWLHV LQ WKH DIIHFWHG DUHDV LGHQWL¿HG WKDW WKH FUX[ RI WKH SUREOHP ZDV WKH DSSURDFK XVHG E\ WKH .HQ\DQ *RYHUQPHQW LQ DWWHQGLQJ WR VOXP GHYHORSPHQW 5HÃ&#x20AC;HFWLQJ RQ LQWHUQDWLRQDO 6KDFN 'ZHOOHUV ,QWHUQDWLRQDO 6', H[SHULHQFHV 3DPRMD 7UXVW UHFRJQLVHG WKDW WKHUH FRXOG EH D ZD\ WR UHVROYH WKH VLWXDWLRQ E\ D UHYHUVDO RI SHUVSHFWLYH ,Q LWV DQDO\VLV 3DPRMD 7UXVW XWLOLVHG WKH EHVW SUDFWLFH SUHFHGHQW RI 6', DI¿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¿FLDO WR DOO SDUWLHV 7KH ,QGLDQ H[DPSOH GHPRQVWUDWHG WKDW WKHUH ZHUH DGYDQWDJHV WR JRYHUQPHQWV ZRUNLQJ WRJHWKHU ZLWK FRPPXQLWLHV UDWKHU WKDQ H[FOXGLQJ WKHP $FFRUGLQJ WR 3DPRMD 7UXVW WKH VXVSHQVLRQ RI HYLFWLRQV LQ .LEHUD KDV HQDEOHG SHRSOH GULYHQ PDSSLQJ HQXPHUDWLRQ DQG ODQG LGHQWL¿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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
&RQFOXVLRQ 7KHVH LQLWLDWLYHV KDYH FROOHFWLYHO\ EORFNHG WKH LQWHQGHG GHPROLWLRQV DQG IDYRXUHG QHJRWLDWLRQV EHWZHHQ WKH YDULRXV SDUWLHV LQYROYHG 'LVFXVVLRQV KHOG WKXV IDU ZLWK WKH JRYHUQPHQW KDYH LQYROYHG WKH SRVVLELOLW\ RI YROXQWDU\ UHORFDWLRQ RI VRPH RI WKH UHVLGHQWV 7KH SURSRVHG ORFDWLRQ DERXW NLORPHWUHV IURP WKH VOXP LV QRW DFFHSWDEOH WR WKH FRPPXQLW\ DV WKLV ZRXOG WDNH SHRSOH IXUWKHU DZD\ IURP WKHLU ZRUN DQG VRXUFHV RI LQFRPH
5HSRUWHG &DVH ±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¿VFDO \HDU 7KHUH LV DQ DQQXDO ORVV RI KRXVLQJ XQLWV OHDGLQJ WR D FRQVWDQW GHSOHWLRQ LQ WKH KRXVLQJ VWRFN )RU H[DPSOH +8'¶V DQQXDO SODQ IRU +RSH 9, IRU FRQWDLQV WKH JRDO RI GHPROLVKLQJ XQLWV RI SXEOLF KRXVLQJ DQG UHSODFLQJ WKHP ZLWK QHZ XQLWV IRU D QHW ORVV RI XQLWV :KLOH IHGHUDO SROLFLHV DUH UHGXFLQJ WKH QXPEHU RI KRXVLQJ XQLWV QDWLRQDOO\ DQG LQ 1HZ <RUN &LW\ UHVLGHQWV DOVR IDFH FRQWURYHUVLDO HYLFWLRQ SROLFLHV $OWKRXJK WKH +RXVLQJ $FW ZDV DQ LPSUHVVLYH YLFWRU\ SXEOLF KRXVLQJ UHVLGHQWV KDYH DOZD\V KDG WR ¿JKW WR NHHS WKHLU KRXVLQJ DQG DW QR WLPH KDV LW EHHQ LQ PRUH GDQJHU WKDQ LW LV QRZ 3XEOLF KRXVLQJ UHVLGHQW DQG DFWLYLVW 6\OYLD 9HOD]TXH] H[SODLQV WKH JURZLQJ LQVHFXULW\ ³5HVLGHQWV EHOLHYH WKDW EHFDXVH WKH\ ZRUN DQG SD\ WKHLU UHQW QRWKLQJ FDQ KDSSHQ WR WKHLU WHQDQF\ 7KLV LV D YHU\ VHULRXV PLVWDNH ´ ³3XEOLF KRXVLQJ DQG LWV UHVLGHQWV KDYH EHHQ XQGHU DWWDFN«ZLWKRXW UHVWUDLQW UHVHUYDWLRQ RU UHJDUG« 7KH +RXVLQJ $FW DFFRPSOLVKHG ZKDW LW ZDV FUHDWHG IRU LW SURYLGHG FOHDQ GHFHQW DIIRUGDEOH KRXVLQJ IRU WKRXVDQGV RI SHRSOH LQ WKLV FLW\ DQG WKURXJKRXW WKH FRXQWU\ « ,I WRGD\ SXEOLF KRXVLQJ LV GHHPHG D IDLOXUH WKHQ HYHU\RQH UHVSRQVLEOH PXVW DFFHSW WKHLU VKDUH RI WKH EODPH )URP WKH PD\RUV WR WKHLU DSSRLQWHHV FRQWUDFWRUV WR GHVLJQHUV DQG LQVSHFWRUV +8'¶V PDVVLYH EXGJHW FXWV WR WKH SROLFH PHUJHU DQG ODVW EXW QRW OHDVW WKH FRPSURPLVLQJ RI WKH UXOHV
BBBBBBBBBBBB
6\OYLD 9HOD]TXH] 1<& 3XEOLF +RXVLQJ 5HVLGHQW $OOLDQFH 1HZV 5HOHDVH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
UHJXODWLRQV DQG VWDQGDUGV E\ RXU ODQGORUG µWKH +RXVLQJ $XWKRULW\¶ ³,I WRGD\ WKH WD[SD\HUV DUH LPSDWLHQW ZLWK WKH VSHQGLQJ RI IHGHUDO GROODUV RQ SXEOLF KRXVLQJ VR DUH ZH WKH UHFLSLHQWV ZKR KDYH OLYHG DQG ZLWQHVVHG WKH ZDVWH DQG PLVPDQDJHPHQW RI WKRVH GROODUV« 2XU GHYHORSPHQWV GHWHULRUDWH ZLWK DJH DV WKH IXQGLQJ ZKLFK PDLQWDLQV RSHUDWHV DQG PRGHUQL]HV RXU GHYHORSPHQWV KDV V\VWHPDWLFDOO\ VHYHUHO\ DQG PDVVLYHO\ EHHQ VODVKHG 2XU YRLFHV RI FRQFHUQ IDOO RQ GHDI HDUV :H KDYH QR FKRLFHV QR UHDO LQSXW DQG PDNH QR UHDO GHFLVLRQV ´
1HZ <RUN &LW\ 3XEOLF +RXVLQJ 1HZ <RUN &LW\ UXQV WKH ODUJHVW SXEOLF KRXVLQJ SURJUDPPH LQ WKH 8QLWHG 6WDWHV ZLWK WKH VHFRQG ODUJHVW SURJUDPPH RI &KLFDJR EHLQJ RQO\ RQH IRXUWK RI WKH VL]H 7KHUH DUH KRXVHKROGV OLYLQJ LQ SXEOLF KRXVLQJ ZLWK DOPRVW DV PDQ\ QDPHO\ RQ WKH ZDLWLQJ OLVW 3XEOLF KRXVLQJ FRQVWLWXWHV RI WKH FLW\¶V UHQWDO DSDUWPHQWV DQG KRXVHV RI WKH FLW\¶V SRSXODWLRQ 7KH SRSXODWLRQ UHPDLQV KLJKO\ VHJUHJDWHG DV RI UHVLGHQWV DUH $IULFDQ $PHULFDQ DUH /DWLQR DUH ZKLWH DQG DUH RWKHU 7KHUH LV D PL[HG LQFRPH SROLF\ OHDGLQJ WR RQO\ RI UHVLGHQW KRXVHKROGV KDYLQJ LQFRPHV EHORZ WKH IHGHUDO SRYHUW\ OLQH DQG RQ SXEOLF DVVLVWDQFH 7KH DYHUDJH KRXVHKROG LQFRPH LV 86 D \HDU
&XUUHQW $WWDFNV RQ 3XEOLF +RXVLQJ LQ 1HZ <RUN &LW\ 7KH IHGHUDO JRYHUQPHQW LV WU\LQJ WR H[WUDFW LWVHOI IURP WKH UHVSRQVLELOLWLHV RI WKH SURYLVLRQ RI SXEOLF KRXVLQJ ,W LV GRLQJ WKLV WKURXJK HQFRXUDJLQJ SULYDWL]DWLRQ SXVKLQJ WKH ¿QDQFLQJ UHVSRQVLELOLWLHV RQWR VWDWH DQG FLW\ JRYHUQPHQWV DQG SURPRWLQJ OHJLVODWLRQ WR PDNH LW HDVLHU IRU SXEOLF KRXVLQJ UHVLGHQWV WR EH HYLFWHG 3XEOLF KRXVLQJ SURJUDPPHV DURXQG WKH FRXQWU\ DUH LQ FULVLV DV XQLWV DUH EHLQJ GHVWUR\HG WKHUH LV LQVXI¿FLHQW IXQGLQJ IRU PDLQWHQDQFH RI H[LVWLQJ EXLOGLQJV DQG WKHUH LV D PRUDWRULXP RQ WKH FRQVWUXFWLRQ RI QHZ EXLOGLQJV 6HFWLRQ ZKLFK KDV EHHQ D IDOO EDFN IRU SHRSOH SXVKHG RXW RI SXEOLF KRXVLQJ LV ORVLQJ IXQGLQJ IHZHU YRXFKHUV DUH EHLQJ LVVXHG WKH RULJLQDO \HDU FRQWUDFWV EHWZHHQ RZQHUV DQG WKH IHGHUDO JRYHUQPHQW DUH UXQQLQJ RXW OHDGLQJ WR ULVLQJ UHQWV ZKLOH ZDLWLQJ OLVWV DUH ORQJHU WKDQ WKH\ KDYH HYHU EHHQ
BBBBBBBBBBBB
6\OYLD 9HOD]TXH] 3XEOLF +RXVLQJ LQ WKH 8QLWHG 6WDWHV $ 7HQDQW¶V 9LHZ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3KRWR &2+5(
/HVV VSDFH IRU SXEOLF KRXVLQJ ± +DUOHP 1HZ <RUN &LW\
7KH µ6XSHUZDLYHU¶ 2QH RI WKH PRVW SUHVVLQJ LVVXHV UHVLGHQWV DUH PRELOL]LQJ WR VWRS LV WKH SDVVDJH RI D µVXSHUZDLYHU¶ ±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¿QDQFH RSHUDWLQJ FRVWV (YLFWLRQV 2QH RI WKH PRVW HJUHJLRXV SROLFLHV E\ ZKLFK UHVLGHQWV FDQ EH HYLFWHG LV WKURXJK ZKDW LV WHUPHG µFKURQLF UHQW GHOLQTXHQF\¶ :KHUHDV SULYDWH ODQGORUGV ZLOO RQO\ VXH WR HYLFW D WHQDQW DIWHU D VLJQL¿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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
+RXVLQJ &RDOLWLRQ DUJXH WKDW WKHVH SROLFLHV WUHDW UHVLGHQWV RI SXEOLF KRXVLQJ PRUH KDUVKO\ DQG XQUHDVRQDEO\ WKDQ RWKHU UHQWHUV RU KRPHRZQHUV LQ WKH 86 &URZOH\ FRQWHQGV WKDW ³>W@KH GHFLVLRQ E\ WKH 6XSUHPH &RXUW WR XSKROG WKH µRQH VWULNH¶ UXOH VHUYHV WR GHHSHQ WKH FKDVP RI LQHTXLW\ EHWZHHQ SHRSOH ZKR DUH SRRU DQG HYHU\RQH HOVH %HFDXVH WKH\ UHFHLYH IHGHUDO KRXVLQJ DVVLVWDQFH DQG WKHUHIRUH WKH UXOHV JRYHUQLQJ WKHLU WHQDQF\ FDQ EH OHJLVODWHG E\ &RQJUHVV SXEOLF KRXVLQJ UHVLGHQWV DUH PRUH YXOQHUDEOH WR ORVLQJ WKHLU KRPHV WKURXJK QR IDXOW RI WKHLU RZQ WKDQ DQ\RQH HOVH ´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³RYHUZKHOPLQJO\ KDUPV ZRPHQ´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³3HRSOH DUH DOUHDG\ OLYLQJ XQGHU FKDOOHQJLQJ FRQGLWLRQV LQ SXEOLF KRXVLQJ 7R QRZ HQIRUFH DQ HLJKW KRXU UXOH LV DQ DWWHPSW WR JHW VRPH FKHDS VODYH ODERXU 7KLV ZLOO DGG WR KRPHOHVVQHVV ´ 7KHUH DUH H[HPSWLRQV WR WKH UHTXLUHPHQW LQFOXGLQJ EXW QRW OLPLWHG WR SHRSOH XQGHU \HDUV BBBBBBBBBBBB
&URZOH\ 6 6WDWHPHQW RI 6KHLOD &URZOH\ 3UHVLGHQW 1DWLRQDO /RZ ,QFRPH +RXVLQJ &RDOLWLRQ RQ WKH 6XSUHPH &RXUW¶V GHFLVLRQ LQ WKH FDVH RI +8' YV 5XFNHU 1DWLRQDO /RZ ,QFRPH +RXVLQJ &RDOLWLRQ 7KH *RWKDP *D]HWWH ³7KH &RPPXQLW\ 6HUYLFH 5HTXLUHPHQW LQ 3XEOLF +RXVLQJ´ -DQXDU\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
ROG RYHU \HDUV ROG SHRSOH ZLWK GLVDELOLWLHV SHRSOH UHFHLYLQJ SXEOLF DVVLVWDQFH SHRSOH LQ VFKRRO DQG SHRSOH ZRUNLQJ D FHUWDLQ DPRXQW RI KRXUV SHU ZHHN VXFK DV D VLQJOH SHUVRQ ZLWK QR FKLOGUHQ XQGHU ZKR HDUQV DW OHDVW 86 D \HDU RU ZRUNV RYHU KRXUV SHU ZHHN ,W LV LQ HDFK FLW\¶V SRZHU UDWKHU WKDQ WKH IHGHUDO JRYHUQPHQW WR GHFLGH ZKDW H[HPSWLRQV DUH JLYHQ 0DQ\ FLWLHV KDYH RIIHUHG EURDG H[HPSWLRQV EHFDXVH WKH OHJLVODWLRQ LV XQIXQGHG DQG WKH\ GR QRW KDYH WKH UHVRXUFHV WR RUJDQL]H WKH SURJUDPPH ZLWKRXW WDNLQJ IURP RWKHU VHUYLFHV 1HYHUWKHOHVV 1<&+$ KDV EHHQ FULWLFL]HG IRU QRW RIIHULQJ HYHQ EURDGHU H[HPSWLRQV IROORZLQJ FLWLHV OLNH &KLFDJR ZKLFK H[HPSWV VLQJOH UHVLGHQWV LI WKH\ ZRUN KRXUV D ZHHN RU PRUH UDWKHU WKDQ
&RPPXQLW\ 5HVSRQVHV 1HZ <RUN &LW\ 3XEOLF +RXVLQJ 5HVLGHQW $OOLDQFH 7KH 1<& 3XEOLF +RXVLQJ 5HVLGHQW $OOLDQFH 1<&+5$ ZDV IRUPHG LQ DV D FLW\ ZLGH RUJDQLVDWLRQ RI FRQFHUQHG SXEOLF KRXVLQJ UHVLGHQWV VHHNLQJ WR LPSURYH KRPHV DQG FRPPXQLWLHV 7KH $OOLDQFH DOVR LGHQWL¿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¶V LQFRPH ZDV EHLQJ GHEDWHG LQ WKH $OOLDQFH LQLWLDWHG D OHWWHU ZULWLQJ FDPSDLJQ ZKLFK KHOSHG WR VWRS WKH %LOO ,Q ZKHQ 1<&+$ DSSOLHG IRU D +8' µ0RYLQJ WR :RUN¶ GHPRQVWUDWLRQ SURJUDPPH WKDW ZRXOG GHUHJXODWH 1<&+$ DQG DEROLVK FHLOLQJ UHQWV WKH $OOLDQFH VSUHDG LQIRUPDWLRQ DERXW WKH SODQ DQG PRELOL]HG KXQGUHGV RI UHVLGHQWV WR SURWHVW 7KLV UHVXOWHG LQ WKH ZLWKGUDZDO RI WKH DSSOLFDWLRQ E\ WKH 1<&+$ 7KH $OOLDQFH KDV EHHQ DFWLYH LQ LQIRUPLQJ UHVLGHQWV DERXW WKH LPSOLFDWLRQV RI WKH 4XDOLW\ +RXVLQJ DQG :RUN 5HVSRQVLELOLW\ $FW RI DW ¿UVW WR DGYRFDWH DJDLQVW SDUWV RI LW DQG ODWHU WR HGXFDWH SHRSOH DERXW WKH QHZ UHTXLUHPHQWV 7KH $OOLDQFH XQGHUWRRN WKLV LQLWLDWLYH DV 1<&+$ ZDV QRW SURSHUO\ GLVVHPLQDWLQJ LQIRUPDWLRQ ,Q RUGHU WR HGXFDWH UHVLGHQWV WKH $OOLDQFH FRQGXFWHG VHYHUDO FLW\ ZLGH IRUXPV RUJDQL]HG RYHU UHVLGHQWV WR DWWHQG KHDULQJV DQG VSRQVRUHG D WHOHYLVHG SURJUDPPH 7KH IXWXUH RI WKH DOOLDQFH 7KH $OOLDQFH FRQWLQXHV WR ¿JKW IRU WKH UHSHDO RI WKH &RPPXQLW\ 6HUYLFH 0DQGDWH LQ SDUWLFXODU WR UHDFK RXW WR RWKHU JURXSV DQG RUJDQLVDWLRQV DURXQG WKH FRXQWU\ WR ZULWH OHWWHUV DQG PHHW ZLWK WKHLU 5HSUHVHQWDWLYHV WR XUJH WKHP WR VLJQ RQ WR &KDUOHV 5DQJOH¶V %LOO µ+ 5 ¶ FDOOLQJ IRU WKH UHSHDO RI WKH &RPPXQLW\ 6HUYLFH 0DQGDWH 8QWLO UHFHQWO\ WKH $OOLDQFH KDV IRFXVHG RQ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
DGYRFDWLQJ DPRQJ 1HZ <RUN &LW\ SXEOLF KRXVLQJ UHVLGHQWV +RZHYHU WKH\ KDYH DOVR LQLWLDWHG HIIRUWV WR UHDFK RXW WR UHVLGHQWV IURP RWKHU FLWLHV LQ RUGHU WR KDYH D VWURQJHU YRLFH LQ DGGUHVVLQJ LVVXHV RI FRPPRQ FRQFHUQ DW WKH IHGHUDO OHYHO ,Q LWV HLJKW \HDUV WKH 5HVLGHQW $OOLDQFH KDV JURZQ DQG EHFRPH UHVSHFWHG DV D VWURQJ DUWLFXODWH YRLFH RI UHVLGHQWV DURXQG WKH FLW\ RI 1HZ <RUN 7KH\ SODQ WR OREE\ PRUH \RXQJ SHRSOH EHWZHHQ WKH DJHV RI DQG ZKR DUH QRW DV \HW LQYROYHG LQ WKH ¿JKW IRU WKHLU SXEOLF KRXVLQJ ,Q DGGLWLRQ WR OLQNLQJ ZLWK RWKHU UHVLGHQWV DURXQG WKH 8QLWHG 6WDWHV $OOLDQFH PHPEHUV KDYH DOVR LGHQWL¿HG WKH QHHG DQG YDOXH LQ HVWDEOLVKLQJ UHODWLRQVKLSV JOREDOO\ LQ RUGHU WR OHDUQ IURP DQG VKDUH VWUDWHJLHV ZLWK RWKHU SHRSOH ZKR DUH ¿JKWLQJ IRU DGHTXDWH KRXVLQJ DQG DJDLQVW HYLFWLRQV 7KH $OOLDQFH LV DOVR VXSSRUWHG LQ LWV HIIRUWV E\ RWKHU JURXSV DQG DJHQFLHV VXFK DV WKH IROORZLQJ
&RPPXQLW\ 6HUYLFH 6RFLHW\ -REV ZLWK -XVWLFH /HJDO $LG 6RFLHW\ 1DWLRQDO &RQJUHVV RI 1HLJKERXUKRRG :RPHQ +XDLURX &RPPLVVLRQ
&DOOV IRU VXSSRUW 7KH 5HVLGHQW $OOLDQFH KDV FDOOHG IRU DVVLVWDQFH WR EULQJ YLVLELOLW\ WR WKH WDFWLFV RI WKH 8QLWHG 6WDWHV IHGHUDO JRYHUQPHQW DJDLQVW SXEOLF KRXVLQJ LQ RUGHU WR SXW SUHVVXUH RQ WKH JRYHUQPHQW WR FKDQJH LWV SROLFLHV 7KH\ DOVR ZDQW WR HVWDEOLVK UHODWLRQVKLSV ZLWK RWKHU JURXSV DQG RUJDQLVDWLRQV DURXQG WKH ZRUOG WKDW DUH ¿JKWLQJ VLPLODU FKDOOHQJHV WR OHDUQ DQG VKDUH WDFWLFV IRU RUJDQL]LQJ DQG DGYRFDWLQJ DJDLQVW VXFK OHJLVODWLRQ SROLFLHV DQG SUDFWLFH
5HSRUWHG &DVH ±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¿QLWLRQ WKH OHJDO GH¿QLWLRQ RI D µ*\SV\¶ BBBBBBBBBBBB
1RWH WKDW WKH WHUP µ*\SV\¶ LV LQWHUSUHWHG DV GHURJDWRU\ LQ PRVW FRXQWULHV +RZHYHU LQ WKH 8QLWHG .LQJGRP LW LV XVHG ZLWK SULGH E\ FHUWDLQ JURXSV DQG LW LV XVHG LQ WKDW FRQWH[W LQ WKLV UHSRUW
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
HQFRPSDVVHV µSHUVRQV RI QRPDGLF KDELW RI OLIH ZKDWHYHU WKHLU UDFH RU RULJLQ¶ 6XFK GH¿QLWLRQ H[FOXGHV SHUVRQV ZKR ZDQGHU RU WUDYHO IRU WKH SXUSRVH RI PDNLQJ RU VHHNLQJ WKHLU OLYHOLKRRG 7KH DEVHQFH RI SUHFLVH DQG UHOLDEOH GDWD RQ WKH *\SV\ DQG 7UDYHOOHU SRSXODWLRQ LQ WKH 8. LPSOLHV WKDW OLWWOH LV NQRZQ DERXW WKHLU H[SHULHQFH DQG QHHGV DV ZHOO DV WKH GLI¿FXOWLHV WKH\ DUH IDFLQJ LQ GLIIHUHQW VHFWRUV LQFOXGLQJ HPSOR\PHQW DQG DFFHVV WR EDVLF VHUYLFHV ,Q SROLF\ PDNLQJ WHUPV WKH DEVHQFH RI FOHDU VWDWLVWLFDO GDWD UHJDUGLQJ *\SVLHV DQG 7UDYHOOHUV UDLVHV FRQFHUQV UHJDUGLQJ WKH DGHTXDF\ DQG HI¿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¿FXOWLHV DQG FRQVWUDLQWV GXH DPRQJ RWKHU IDFWRUV WR WKH H[LVWLQJ OHJLVODWLRQ DQG SUHMXGLFHV DJDLQVW WKHP
3KRWR &2+5(
7ZR 8. *\SVLHV RXWVLGH WKHLU FDUDYDQ DW :RRGVLGH 8. 7KLV FRXSOH KDYH UHVLVWHG HYLFWLRQ IRU \HDUV WR SURWHFW WKHLU OLIHVW\OH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
(QWUHQFKHG 'LVFULPLQDWLRQ DJDLQVW *\SVLHV DQG 7UDYHOOHUV $V *\SVLHV DQG 7UDYHOOHUV KDYH D GLIIHUHQW OLIHVW\OH ZKLFK GRHV QRW ¿W LQWR WKH PDLQVWUHDP VRFLHW\¶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¿FXOWLHV IDFHG E\ WKHP WR DFTXLUH SODQQLQJ SHUPLVVLRQV UHIXVDOV WR VHWWOH LQ VSHFL¿F DUHDV RU HQWHU VSHFL¿F SODFHV DV ZHOO DV YLROHQW DWWDFNV DJDLQVW WKHP )RU LQVWDQFH KROLGD\ SDUNV DUH VXGGHQO\ IXOO ZKHQ *\SV\ DQG 7UDYHOOHU FDUDYDQV GULYH LQ ZLWK VLJQV DW WKH HQWUDQFH QRWLI\LQJ WKDW µQR YDQ GZHOOHUV¶ DUH DGPLWWHG 6XFK GLVFULPLQDWRU\ VLJQV DQG DGYHUWLVHPHQWV DOVR DSSHDU LQ SXEV DQG RWKHU SXEOLF VSDFHV LQ EODWDQW EUHDFK RI WKH ODZ :KLOH WKHVH SUHMXGLFHV FOHDUO\ IXHO H[LVWLQJ GLVFULPLQDWRU\ SUDFWLFHV DJDLQVW WKH *\SV\ DQG 7UDYHOOHU FRPPXQLWLHV LQWHUYLHZV FRQGXFWHG GXULQJ D &2+5( IDFW ¿QGLQJ PLVVLRQ KLJKOLJKWHG WKDW JHQXLQH FRQFHUQV H[SUHVVHG E\ WKH ORFDO FRPPXQLWLHV KDG WR EH WDNHQ LQWR DFFRXQW LQ RUGHU WR DGGUHVV WKH RYHUDOO GLVFULPLQDWLRQ IDFHG E\ *\SVLHV DQG 7UDYHOOHUV +HQFH LQ VRPH LQVWDQFHV GLDORJXH KDV WDNHQ SODFH EHWZHHQ WKH ORFDO FRPPXQLWLHV DQG *\SVLHV DQG 7UDYHOOHUV 7KHVH GLVFXVVLRQV KDYH RIWHQ UHVXOWHG LQ LQQRYDWLYH SURSRVDOV WR DGGUHVV WKH KRXVLQJ VLWXDWLRQ RI *\SVLHV DQG 7UDYHOOHUV )RU LQVWDQFH LQ D MRLQW VWDWHPHQW WKH &RWWHQKDP 5HVLGHQW¶V $VVRFLDWLRQ DQG WKH *\SV\ 7UDYHOOHU /DZ 5HIRUP &RDOLWLRQ VWUHVVHG WKH QHHG WR PHHW DFFRPPRGDWLRQ QHHGV RI WKH *\SV\ DQG 7UDYHOOHUV FRPPXQLWLHV LQ D ZD\ WKDW ZRXOG UHVSHFW WKHLU WUDGLWLRQDO ZD\ RI OLIH
/HJDO DQG SROLF\ LQWHUYHQWLRQV ,Q WKH V *\SV\ DQG 7UDYHOOHU FRPPXQLWLHV IDFHG IRUFHG HYLFWLRQ E\ WKH SROLFH DQG EXOOGR]HUV IURP ODQG ZKLFK WKH\ KDG RIWHQ ERXJKW 7KLV FULVLV OHG WR D QXPEHU RI *\SVLHV DQG 7UDYHOOHUV RUJDQL]LQJ WKHPVHOYHV LQWR SROLF\ UHIRUP JURXSV 7KH µ*\SV\ &RXQFLO¶ DV LW ZDV FDOOHG ZDV RULJLQDOO\ IRXQGHG LQ OHDGLQJ WR WKH IRUPDWLRQ RI WKH ¿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¶ REOLJDWLRQV WR SURYLGH VLWHV IRU *\SVLHV DQG
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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¿QHG XQGHU WKLV VHFWLRQ DV ³ « D SHUVRQ IRU WKH WLPH EHLQJ UHVLGLQJ LQ D YHKLFOH RQ DQ\ ODQG IRUPLQJ SDUW RI WKH KLJKZD\ DQ\ RWKHU XQRFFXSLHG ODQG RU DQ\ RFFXSLHG ODQG ZLWKRXW WKH RZQHU¶V FRQVHQW´ $ IDLOXUH WR FRPSO\ ZLWK VXFK D GLUHFWLRQ RU UH HQWU\ XSRQ WKH ODQG ZLWKLQ WKUHH PRQWKV LV FRQVLGHUHG DV D FULPLQDO RIIHQFH 8QGHU VHFWLRQ RI WKH $FW ORFDO DXWKRULWLHV FDQ DSSO\ WR D PDJLVWUDWHV¶ FRXUW IRU DQ RUGHU DXWKRULVLQJ WKHP WR UHPRYH XQDXWKRULVHG FDPSHUV :KLOH WKLV $FW JDYH VZHHSLQJ SRZHUV WR ORFDO DXWKRULWLHV WR PRYH *\SVLHV DQG 7UDYHOOHUV IURP DQ\ KLJKZD\ DV ZHOO DV XQRFFXSLHG RU RFFXSLHG ODQG D JXLGDQFH LVVXHG E\ WKH 6HFUHWDU\ RI 6WDWH RQ 1RYHPEHU &LUFXODU UHTXLUHG ORFDO DXWKRULWLHV WR DGRSW D ³SROLF\ RI WROHUDWLRQ WRZDUGV XQDXWKRULVHG J\SV\ HQFDPSPHQWV´ DQG VWUHVVHG WKDW ³ORFDO DXWKRULWLHV VKRXOG QRW XVH WKHLU SRZHUV WR HYLFW J\SVLHV QHHGOHVVO\´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¿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¿FDOO\ PDQGDWH ORFDO DXWKRULWLHV WR SURYLGH VXFK DVVLVWDQFH WR *\SVLHV DQG 7UDYHOOHUV ,Q DGGLWLRQ VRPH ORFDO DXWKRULWLHV GHYHORSHG VWULFW VHWV RI FULWHULD WR REWDLQ SODQQLQJ SHUPLVVLRQ WKXV UHQGHULQJ WKH REWDLQLQJ RI SODQQLQJ SHUPLVVLRQ DOPRVW LPSRVVLEOH IRU *\SVLHV DQG 7UDYHOOHUV 7KH FXUUHQW VLWXDWLRQ LQ WKH 8. FRQWLQXHV WR EH UHJXODWHG E\ WKH $FW ,WV LPSOHPHQWDWLRQ BBBBBBBBBBBB
&ULPLQDO -XVWLFH DQG 3XEOLF 2UGHU $FW RI 6HFWLRQ DV TXRWHG LQ &2+5( ,QLWLDO 5HSRUW RI )DFW ¿QGLQJ 0LVVLRQ WR WKH 8. 8. 6HFUHWDU\ RI 6WDWH &LUFXODU DV TXRWHG LQ &2+5( ,QLWLDO 5HSRUW RI )DFW ¿QGLQJ 0LVVLRQ WR WKH 8.
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
KDV KDG WKH H[SHFWHG DQG GHVLUHG UHVXOW L H HQFRXUDJLQJ *\SVLHV DQG 7UDYHOOHUV WR HVWDEOLVK WKHLU RZQ VLWHV WKURXJK WKH SODQQLQJ SURFHVV $OWKRXJK LW FRXOG EH DVVXPHG WKDW VXFK DQ RXWFRPH LV WKH UHVXOW RI WKH LPSOHPHQWDWLRQ RI D SROLF\ RU SURJUDPPHV WR SURPRWH DQG VXSSRUW ODQG SXUFKDVH E\ *\SVLHV DQG 7UDYHOOHUV DV UHFRPPHQGHG E\ &LUFXODU VXFK PHDVXUHV KDYH QRW EHHQ SXW LQ SODFH *\SVLHV DQG 7UDYHOOHUV KDYH UHFHLYHG OLWWOH LI DQ\ JXLGDQFH IURP ORFDO DXWKRULWLHV RQ WKLV PDWWHU
7KH 'DOH )DUP FDVH $ 7UDYHOOHU &RPPXQLW\ ZKLFK KDV UHFHQWO\ EHHQ WKUHDWHQHG ZLWK HYLFWLRQ LV UHVLGHQW RQ WKH SURSHUW\ NQRZQ DV µ'DOH )DUP¶ LQ 2DN /DQH &UD\V +LOO QHDU %DVLOGRQ LQ WKH FRXQW\ RI (VVH[ LQ (QJODQG 7KH IDUP LV UXUDO DQG ORFDWHG LQ WKH PLGVW RI ¿HOGV DOWKRXJK FORVH WR WKH XUEDQ DUHD RI %DVLOGRQ 7KH ODQG LV RZQHG E\ WKH UHVLGHQW 7UDYHOOHU FRPPXQLW\ 6RPH PHPEHUV RI WKH FRPPXQLW\ KDYH OLYHG RQ WKH IDUP VLQFH WKH V 2WKHUV KDYH MRLQHG RYHU WLPH UHVXOWLQJ LQ WKH JUDGXDO H[SDQVLRQ RI WKH FRPPXQLW\ RYHU WLPH 0DQ\ RI WKH SHRSOH FXUUHQWO\ RQ WKH ODQG DUH µLQWHUQDO UHIXJHHV¶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µ*UHHQ %HOW¶ VWDWXV RI WKH ODQG ±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¿FDWLRQ RI WKH &RXQFLO¶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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
REOLJDWLRQV LQ WHUPV RI WKH 5DFH 5HODWLRQV $FW DV 7UDYHOOHUV DUH D UHFRJQLVHG HWKQLF JURXS 6XJJHVWHG DOWHUQDWLYHV WR WKH SURSRVHG HYLFWLRQ DUH WKH IROORZLQJ WKH JUDQWLQJ RI SODQQLQJ SHUPLVVLRQ ZKHUH QHHGHG E\ DIIHFWHG IDPLOLHV UHVLGHQW RQ WKH IDUP DQ RIIHU RI VXLWDEOH DOWHUQDWLYH ODQG E\ WKH 'LVWULFW &RXQFLO IRU WKH XVH RI PHPEHUV RI WKH 7UDYHOOHUV &RPPXQLW\ 3RVVLEOH DFWLRQV LQ VXSSRUW RI *\SVLHV DQG 7UDYHOOHUV LQ WKH 8QLWHG .LQJGRP x /REE\ WKH 8QLWHG .LQJGRP JRYHUQPHQW WR LQWURGXFH D VWDWXWRU\ REOLJDWLRQ WR EH SODFHG RQ DOO ORFDO DXWKRULWLHV WR PHHW WKH DFFRPPRGDWLRQ QHHGV RI *\SVLHV DQG 7UDYHOOHUV LQ D ZD\ WKDW ZRXOG UHVSHFW WKHLU WUDGLWLRQDO ZD\ RI OLIH 7KLV ZRXOG LQFOXGH WKH SURYLVLRQ RI DGHTXDWH VLWHV ERWK SXEOLF DQG SULYDWH DV ZHOO DV UHVLGHQWLDO DQG WUDQVLW VLWHV 6XFK VWDWXWRU\ GXW\ LV FXUUHQWO\ LQFOXGHG LQ WKH &RPPLVVLRQ RQ 5DFLDO (TXDOLW\ &5( GUDIW IRU WKH +RXVLQJ %LOO x 0DNH UHSUHVHQWDWLRQV WR WKH 8. JRYHUQPHQW WR GHYHORS DQG LPSOHPHQW D FRKHUHQW DQG FOHDU QDWLRQDO SROLF\ WRZDUGV DFFRPPRGDWLRQ IRU *\SVLHV DQG 7UDYHOOHUV 7KLV FRXOG LQFOXGH WKH REOLJDWLRQ WR XQGHUWDNH SHULRGLFDO UHYLHZ RI KRXVLQJ QHHGV LQFRUSRUDWLQJ *\SVLHV DQG 7UDYHOOHUV LQWR DQ KRXVLQJ DFFRPPRGDWLRQ QHHGV DVVHVVPHQW x 7KHUH LV D QHHG WR PDNH SODQQLQJ SHUPLVVLRQV SURFHVVHV HDVLHU IRU *\SVLHV DQG 7UDYHOOHUV DQG WR SXW LQ SODFH IDYRXUDEOH WUHDWPHQW IRU *\SVLHV DQG 7UDYHOOHUV WKURXJKRXW WKH SODQQLQJ SURFHVV x 0RVW *\SVLHV DQG 7UDYHOOHUV KDYH OLPLWHG NQRZOHGJH DERXW WKH SODQQLQJ V\VWHP DQG UHJXODWLRQV $V VXFK WKH\ DUH YXOQHUDEOH WR DEXVHV DQG DUH RIWHQ XQDEOH WR XQGHUVWDQG RU HQJDJH HIIHFWLYHO\ ZLWK WKH UHTXLUHPHQWV RI WKH SODQQLQJ V\VWHPV 6WHSV VKRXOG EH WDNHQ WR LPSURYH WKHLU DFFHVV WR LQIRUPDWLRQ DQG FDSDFLW\ WR XVH LW
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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
UHFHLYHG IURP D ORFDO &2+5( FRQWDFW ³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´
6XFK VXFFHVVHV PD\ EH VPDOO EXW WKH\ DUH VLJQL¿FDQW 7KH\ LOOXVWUDWH WKH LPSRUWDQFH RI D FRPPXQLW\ GULYHQ SURFHVV VXSSRUWHG E\ RUJDQLVDWLRQV DW GLIIHUHQW OHYHOV HDFK SOD\LQJ WKHLU SDUW LQ FRQYLQFLQJ WKH UHOHYDQW DXWKRULWLHV WKDW DQ DOWHUQDWLYH WR HYLFWLRQ LV SRVVLEOH +RZHYHU VLPSO\ KDOWLQJ DQ HYLFWLRQ LV QRW VXI¿FLHQW )XUWKHU ZRUN ZRXOG EH UHTXLUHG WR JDLQ VHFXULW\ RI WHQXUH IRU WKH UHVLGHQWV DQG DOVR WR LQLWLDWH SURFHVVHV WR UHDOLVH DOO GLPHQVLRQV RI WKHLU ULJKW WR DGHTXDWH KRXVLQJ 6LQFH 81 +$%,7$7 KDV HQJDJHG ZLWK WKH *RYHUQPHQW RI 8JDQGD DQG RWKHU VWDNHKROGHUV LQFOXGLQJ FRPPXQLW\ RUJDQLVDWLRQV LQ D 6HFXUH 7HQXUH &DPSDLJQ WKDW KDV EURXJKW WRJHWKHU DOO SURWDJRQLVWV 7KH DLP RI WKH FDPSDLJQ LV WR HQVXUH WKDW WKH XUEDQ SRRU¶V ULJKW WR WKH FLW\ LV UHFRJQLVHG DQG SURWHFWHG DQG WKDW QR IRUFHG HYLFWLRQV ZLOO WDNH SODFH LQ .DPSDOD RU RWKHU 8JDQGDQ FLW\ RU WRZQ 7KH FDPSDLJQ LV VXSSRUWHG E\ D µ&LWLHV ZLWKRXW 6OXPV¶ SURJUDPPH LQ WKH FLW\ RI .DPSDOD WKDW ZLOO WUDQVODWH WKH RXWSXWV RI WKH FDPSDLJQ LQWR FRQFUHWH DFWLRQV LQFOXGLQJ WKH UHYLVLRQ RI WKH H[LVWLQJ ODQG DQG WHQXUH V\VWHPV FDSDFLW\ EXLOGLQJ RI DOO SDUWQHUV LQ YLHZ RI HQJDJLQJ LQ FLW\ ZLGH SDUWLFLSDWRU\ VOXP XSJUDGLQJ SURJUDPPHV ,W LV H[SHFWHG WKDW DQ DFWLRQ SODQ EDVHG RQ WKH UHFRJQLWLRQ RI KRXVLQJ ULJKWV SULQFLSOHV ZLOO EH DGRSWHG RQ D FRQVHQVXDO EDVLV DQG RI¿FLDOO\ ODXQFKHG DW WKH HQG RI $*)( LQWHQGV WR PRQLWRU DQG ZRUN ZLWK WKLV SURFHVV WR HQVXUH WKDW WKH QXPEHU RI IRUFHG HYLFWLRQV LQ 8JDQGD LV VLJQL¿FDQWO\ UHGXFHG
5HSRUWHG &DVH 'LJ\D 1DWLRQDO 3DUN *KDQD 7KH LQGLJHQRXV FRPPXQLW\ ZKLFK ZDV WKUHDWHQHG ZLWK HYLFWLRQ UHVLGH LQ 'LJ\D 1DWLRQDO 3DUN $IUDP 3ODLQ 'LVWULFW *KDQD 7KH *RYHUQPHQW RI *KDQD WKUHDWHQHG WKH FRPPXQLW\ ZLWK HYLFWLRQ LQ -XQH DV WKH\ UHVLGHG LQ D IRUHVW UHVHUYH ZKLFK GLG QRW DOORZ IRU KXPDQ KDELWDWLRQ 7KLV ZDV GHVSLWH WKH IDFW WKDW WKH FRPPXQLW\ KDG UHVLGHG LQ DQG OLYHG LQ KDUPRQ\ ZLWK WKH IRUHVW IRU VRPH IRUW\ \HDUV 7KH FRPPXQLW\ QXPEHULQJ DSSUR[LPDWHO\ FDQRH ¿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
&2+5( 3ULRULW\ (YLFWLRQ &DVH 5HSRUW .DPSDOD 8JDQGD
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
E\ &(3,/ LQ WKH OHWWHU DQG GLUHFWHG WKDW WKH SODQQHG HYLFWLRQ EH VXVSHQGHG ZLWKLQ GD\V DIWHU UHFHLYLQJ WKLV LQIRUPDWLRQ 7KLV FDVH LOOXVWUDWHV WKDW LQIRUPHG VXSSRUW IRU DIIHFWHG FRPPXQLWLHV E\ ORFDO DQG LQWHUQDWLRQDO DJHQFLHV FDQ SRVLWLYHO\ LQÃ&#x20AC;XHQFH JRYHUQPHQW GHSDUWPHQWV DQG SURYLGH DSSURSULDWH UHVRXUFHV IRU DGYRFDWLQJ RQ KXPDQ ULJKWV LVVXHV ZLWKLQ WKH FRQWH[W RI DFFHSWHG LQWHUQDWLRQDO ODZ DQG SUDFWLVH +RZHYHU LW LV DFNQRZOHGJHG WKDW VLPSO\ KDOWLQJ D WKUHDWHQHG HYLFWLRQ LV QRW VXI¿FLHQW DW OHDVW XQWLO VHFXULW\ RI WHQXUH KDV EHHQ JXDUDQWHHG E\ WKH 6WDWH ,QGHHG ORFDO VRXUFHV KDYH UHFHQWO\ LQGLFDWHG WKDW WKHUH LV UHQHZHG WDON RI PRYLQJ WKH LQKDELWDQWV IURP WKH IRUHVW UHVHUYH (IIRUWV WR DFKLHYH IXOO VHFXULW\ RI WHQXUH IRU WKH RFFXSDQWV VKRXOG DQG GR FRQWLQXH
5HSRUWHG &DVH ±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¿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¶V RIIHU WR UHORFDWH IDPLOLHV WR DQRWKHU VLWH LV QRW DFFHSWDEOH WR WKRVH IDPLOLHV ZKR DUH VFKHGXOHG IRU HYLFWLRQ DPRQJVW RWKHU UHDVRQV EHFDXVH WKH UHORFDWLRQ VLWHV EHLQJ RIIHUHG DUH GLVWDQW IURP WKHLU H[LVWLQJ KRPHV DQG FXUUHQW VRXUFHV RI OLYHOLKRRG ,Q DGGLWLRQ WR WKH ODFN RI OLYHOLKRRG RSSRUWXQLWLHV LQ WKH UHORFDWLRQ VLWHV WKHVH VLWHV DOVR ODFN HVVHQWLDO VRFLDO VHUYLFHV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
VXFK DV VFKRROV KHDOWK FDUH GUDLQDJH SRWDEOH ZDWHU RU HOHFWULFLW\
3KRWR &2+5(
&RPPXQLW\ UHVLVWDQFH DJDLQVW HYLFWLRQV 3KLOLSSLQHV
7KH 1RUWK 5DLOZD\ 3URMHFW 7KH 1RUWK 5DLOZD\ 3URMHFW ZLOO EH FRQVWUXFWHG IURP &DORRFDQ &LW\ LQ WKH KHDUW RI 0DQLOD XS WR WKH QRUWKHUQ UHJLRQ RI ,ORFRV 7KLV SURMHFW DLPV WR UHYLYH DQG PRGHUQL]H WKH UDLO WUDQVSRUW QRUWK RI 0DQLOD ZKLFK KDV EHHQ DEDQGRQHG IRU D TXDUWHU RI D FHQWXU\ 7KH SURMHFW KDV YDULRXV SKDVHV IRU LPSOHPHQWDWLRQ QDPHO\ 3KDVH , 3KDVH ,, 3KDVH ,,, 3KDVH ,9
&DORRFDQ &LW\ WR 0DORORV %XODFDQ )URP %XODFDQ SURYLQFH WR WKH 6XELF )UHHSRUW =RQH LQ =DPEDOHV SURYLQFH )URP &DORRFDQ WR WKH )RUW %RQLIDFLR *OREDO &LW\ LQ 7DJXLJ ([WHQGV DOO WKH ZD\ WR WKH QRUWK WR 6DQ )HUQDQGR /D 8QLRQ SDVVLQJ WKURXJK 3DPSDQJD 7DUODF DQG 3DQJDVLQDQ SURYLQFHV
7KH SURMHFW ZLOO DIIHFW IDPLOLHV ZKR KDYH OLYHG LQ WKH DUHD EHWZHHQ ¿YH DQG IRUW\ \HDUV 7KHLU KRXVHV KDYH WR JLYH ZD\ IRU WKH FRQVWUXFWLRQ RI WKH UDLOZD\ WKDW ZLOO PRGHUQL]H WUDQVSRUWDWLRQ WR DQG IURP 0HWUR 0DQLOD DQG WKH QRUWK RI WKH LVODQG RI /X]RQ $Q DPRXQW RI 86 PLOOLRQ LV EHLQJ DOORWWHG IRU 3KDVH RI WKH SURMHFW 7KH WRWDO SURMHFW FRVW LV HVWLPDWHG DW 86 ELOOLRQ
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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
2Q )HEUXDU\ DQ (QJLQHHULQJ 3URFXUHPHQW DQG &RQVWUXFWLRQ (3& &RQWUDFW ZDV H[HFXWHG EHWZHHQ 1RUWK5DLO DQG WKH 65* ZKLFK LV FRPSRVHG RI &RQVWUXFFLRQHV \ $X[LOLDU GH )HUURFDUULOHV UROOLQJ VWRFN &REUD ,QVWDODFLRQHV \ 6HUYLFLRV HOHFWUL¿FDWLRQ VLJQDOOLQJ DQG FRPPXQLFDWLRQV DQG &XELHUWDV \ (QWUHFDQDOHV FLYLO ZRUNV 7KLV ZDV WHUPLQDWHG RQ $XJXVW DV SDUWLHV FRXOG QRW DJUHH RQ WKH *XDUDQWHHG 0D[LPXP 3ULFH 2Q )HEUXDU\ WKH -9$ ZDV DPHQGHG WR LQFOXGH ' 0 &RQVXQML ,QF '0&, DV SULYDWH VHFWRU LQYHVWRU 6XEVHTXHQWO\ RQ -XO\ )RUW %RQLIDFLR 'HYHORSPHQW &RUSRUDWLRQ )%'& DQG 0HWUR 3DFL¿F &RUSRUDWLRQ 03& ZHUH DOVR LQFOXGHG DV SULYDWH VHFWRU LQYHVWRUV 2Q -XO\ WKH 1RUWK5DLO %RDUG UHVROYHG WR LQFUHDVH LWV 1RUWK5DLO¶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¿QDQFLQJ IDFLOLW\ 2Q $XJXVW D 0HPRUDQGXP RI 8QGHUVWDQGLQJ ZDV VLJQHG EHWZHHQ WKH 'HSDUWPHQW RI )LQDQFH DQG WKH ([SRUW ,PSRUW %DQN RI &KLQD IRU WKH XWLOL]DWLRQ RI 86 PLOOLRQ IRU WKH FRQVWUXFWLRQ RI WKH 1RUWK5DLO 3URMHFW 3KDVH 6HFWLRQ
,PSOHPHQWLQJ DJHQFLHV IRU WKH HYLFWLRQV 7KH IROORZLQJ KDYH EHHQ LGHQWL¿HG DV WKH LPSOHPHQWLQJ DJHQWV IRU WKH HYLFWLRQV QDPHO\
+RXVLQJ DQG 8UEDQ 'HYHORSPHQW &R RUGLQDWLQJ &RXQFLO +8'&&
3UHVLGHQWLDO &RPPLVVLRQ IRU WKH 8UEDQ 3RRU 3&83
1DWLRQDO +RXVLQJ $XWKRULW\ 3KLOLSSLQH 1DWLRQDO 5DLOZD\V 1DWLRQDO 'HYHORSPHQW &RPSDQ\ 1RUWK /X]RQ 5DLOZD\ &RUS %DVHV &RQYHUVLRQ 'HYHORSPHQW $XWKRULW\
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
/RFDO *RYHUQPHQWV RI DIIHFWHG FRPPXQLWLHV
5HVLGHQWV¶ UHVSRQVHV WR WKH SURSRVHG HYLFWLRQV 5HVLGHQWV KDYH UHVLVWHG WKH SURSRVHG HYLFWLRQV 6KRXOG HYLFWLRQ EHFRPH LQHYLWDEOH WKH\ KDYH VWDWHG WKDW WKH\ ZDQW HLWKHU UHORFDWLRQ WR D QHDUE\ DUHD VR WKDW WKH\ ZLOO QRW EH GLVSODFHG IURP WKHLU SODFHV RI OLYHOLKRRG DQG VRFLDO VXSSRUW V\VWHPV VXFK DV FKLOGUHQ¶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¿HG WKH +RXVLQJ DQG 8UEDQ 'HYHORSPHQW &R RUGLQDWLQJ &RXQFLO WKH 3UHVLGHQWLDO &RPPLVVLRQ IRU WKH 8UEDQ 3RRU WKH 1DWLRQDO +RXVLQJ $XWKRULW\ DQG WKH 3KLOLSSLQH 1DWLRQDO 5DLOZD\V 7KH\ LJQRUHG D GD\ QRWLFH RI HYLFWLRQ LVVXHG E\ WKH &DORRFDQ &LW\ JRYHUQPHQW RQ -DQXDU\ 7KH +HDG RI WKH &DORRFDQ 8UEDQ 3RRU $IIDLUV 2I¿FH 9LROHWD *RQ]DOHV VDLG WKH JRYHUQPHQW ZRXOG KDYH WR UHORFDWH WKH IDPLOLHV IRUFLEO\ LI WKH\ GLG QRW OHDYH LQ GD\V ,Q 6DQJDQGDDQ DQRWKHU SDUW RI &DORRFDQ &LW\ IDPLOLHV SURWHVWHG WKHLU UHORFDWLRQ WR WKH 7RZHUYLOOH VXEGLYLVLRQ UHORFDWLRQ VLWH LQ 6DQ -RVH GHO 0RQWH %XODFDQ LQ )HEUXDU\ 7KHVH IDPLOLHV ZHUH SUHSDUHG WR µGHIHQG WKHLU KRPHV¶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
&RQVWUXFWLRQ GHOD\V DQG EXGJHW FRQVWUDLQWV 7KH 3KLOLSSLQH *RYHUQPHQW LV SUHSDULQJ DQRWKHU UHORFDWLRQ VLWH WKH %XODFDQ +RXVLQJ DQG $JUR ,QGXVWULDO 3URMHFW %8+$, LQ 1RU]DJDUD\ %XODFDQ WR DFFRPPRGDWH WKH IDPLOLHV WKDW ZRXOG EH DIIHFWHG E\ WKH SURMHFW LQ 0DORORV %XODFDQ $OWKRXJK WKLV VLWH LV VXSSRVHG WR DFFRPPRGDWH KRXVLQJ XQLWV RQO\ KRXVHV KDG EHHQ EXLOW E\ $XJXVW 2I DGGLWLRQDO FRQFHUQ LV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
WKH IDFW WKDW WKH %8+$, SURMHFW FDQ RQO\ DFFRPPRGDWH RI WKH WRWDO IDPLOLHV DIIHFWHG 0HGLD UHSRUWV LQ 0DORORV VWDWH WKDW UHVLGHQWV DUH DOUHDG\ EHLQJ HYLFWHG LQ WHUPV RI WKH 1RUWK 5DLOZD\ 3URMHFW 2FFXSDQWV RI WKH DUHD GHQ\ WKLV KRZHYHU VD\LQJ WKDW VXFK UHSRUWV KDYH VFDUHG RWKHU RFFXSDQWV $ JRYHUQPHQW UHSUHVHQWDWLYH $OH[ )ORUHV RI WKH 3URMHFW 0DQDJHPHQW 2I¿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
2WKHU HYLFWLRQ WKUHDWV DV D UHVXOW RI JRYHUQPHQW LQIUDVWUXFWXUH SURMHFWV DV UHSRUWHG E\ 8UEDQ 3RRU $VVRFLDWHV 5DGLDO 5RDG
$ URDG ZLGHQLQJ SURMHFW DORQJ WKH SLHUV RI 'HOSDQ WR 1DYRWDV 7KH H[LVWLQJ FRQFUHWH URDG ZDV IXQGHG E\ WKH 2YHUVHDV (FRQRPLF &R RSHUDWLRQ )XQG RI -DSDQ 2(&) DQG WKH ZLGHQLQJ ZLOO EH IXQGHG E\ WKH 1DWLRQDO *RYHUQPHQW %DVHG RQ WKH ODWHVW FHQVXV FRQGXFWHG E\ WKH 'HSDUWPHQW RI 3XEOLF :RUNV DQG +LJKZD\V '3:+ WKH QXPEHU RI XUEDQ IDPLOLHV WR EH DIIHFWHG E\ WKH FRQVWUXFWLRQ LV HVWLPDWHG DW 7KHVH IDPLOLHV KDYH VWD\HG LQ WKH DUHD IRU D PLQLPXP RI WZR \HDUV DQG D PD[LPXP RI WHQ \HDUV
&LUFXPIHUHQWLDO 5RDG
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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
3DVLJ 5LYHU 5HKDELOLWDWLRQ 3URJUDPPH
7KLV DUHD LV ERXQGHG E\ WKH PXQLFLSDOLWLHV RI 6DQ -XDQ 3DWHURV 7DJXLJ DQG WKH FLWLHV RI 0DQLOD 0DNDWL 0DQGDOX\RQJ 3DVLJ 0DULNLQD DQG 4XH]RQ &LW\ ,W VWUHWFKHV IURP 0DQLOD %D\ IRU DSSUR[LPDWHO\ NLORPHWUHV WR /DJXQD /DNH 7KH '(15 5LYHU 5HKDELOLWDWLRQ 6HFUHWDULDW D WHFKQLFDO DUP RI WKH 3553 HVWLPDWHV WKDW DERXW IDPLOLHV OLYH DORQJ WKH HDVHPHQWV WKH PDLQ ULYHU 7KLV HVWLPDWH UHSUHVHQWV D UHGXFHG SRSXODWLRQ DV WKH JRYHUQPHQW KDG DOUHDG\ UHORFDWHG IDPLOLHV ZKR OLYHG RQ VWLOW KRXVHV DORQJ WKH ULYHU WR 'DVPDUL &DYLWH 7KH SHRSOH DUH PRVWO\ LQIRUPDO ZRUNHUV YHQGRUV VWHYHGRUHV DQG GULYHUV 2WKHUV DUH HPSOR\HG LQ QHDUE\ SULYDWH DQG SXEOLF FRPSDQLHV DQG IDFWRULHV 0DQ\ RI WKHP KDYH EHHQ LQ WKH FRPPXQLWLHV VLQFH ELUWK 7KH OHQJWK RI VWD\ UDQJHV IURP WR \HDUV 5HDVRQ JLYHQ IRU GHPROLWLRQ IRU SDUNV URDGV DQG EHDXWL¿FDWLRQ RI WKH ULYHU DQG LWV HQYLURQV DV PDQGDWHG LQ WKH 3553 $QRWKHU UHDVRQ WR IDFLOLWDWH FRQVWUXFWLRQ RI WRZQKRXVHV IRU \RXQJ SURIHVVLRQDOV
1DWLRQDO *RYHUQPHQW &HQWUH +RXVLQJ 3URMHFW
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
,QWUDPXURV 0DHVWUDQ]D &RPSRXQG %HDXWL¿FDWLRQ DQG +LVWRULFDO 3DUNV &RPPHUFLDO 'HYHORSPHQW SURMHFWV
7KH SURMHFW DLPV WR GHYHORS WKH ,QWUDPXURV DUHD LQWR D WRXULVW GHVWLQDWLRQ E\ KLJKOLJKWLQJ LWV KLVWRULFDO DQG FRPPHUFLDO YDOXH $SSUR[LPDWHO\ XUEDQ SRRU IDPLOLHV ZLOO EH DIIHFWHG E\ WKH SURMHFW 7KHVH IDPLOLHV GHULYH WKHLU LQFRPH E\ ZRUNLQJ DV FRQVWUXFWLRQ ZRUNHUV YHQGRUV VLGHFDU GULYHUV VWHYHGRUHV DQG ZDWHUER\V
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
'RFXPHQWHG GHPROLWLRQV -DQXDU\ WR -XQH DV UHSRUWHG E\ 8UEDQ 3RRU $VVRFLDWHV 0DUFK ,Q IURQW RI 6DQGLJDQ &RPPRQZHDOWK $YHQXH 4XH]RQ &LW\
)LIW\ UHVLGHQWLDO FRPPHUFLDO VWUXFWXUHV ZHUH GHPROLVKHG E\ WKH '3:+ IRU WKH JRYHUQPHQW¶V URDG ZLGHQLQJ SURMHFW 7KH DIIHFWHG IDPLOLHV ZHUH RIIHUHG UHVHWWOHPHQW LQ %LWXQJRO 1RU]DJDUD\ %XODFDQ 7KH\ UHFHLYHG QRWLFHV RI GHPROLWLRQ LQ -DQXDU\ 7KH '3:+ KDG QR SULRU FOHDUDQFH IURP 3&83 7KH IDPLOLHV FRPSODLQHG DERXW 00'$ FRQ¿VFDWLRQ RI WKHLU SRVVHVVLRQV VXFK DV FRRNLQJ XWHQVLOV DQG IXUQLWXUH
0DUFK 3DQDPD 9HWHUDQV 9LOODJH %UJ\ +RO\ 6SLULW 4XH]RQ &LW\
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
0DUFK 6W 3HWHU¶V &KXUFK &RPPRQZHDOWK $YHQXH 4XH]RQ &LW\
$ 00'$ GHPROLWLRQ FUHZ GHPROLVKHG WHQ VWUXFWXUHV DORQJ &RPPRQZHDOWK $YHQXH QHDU 6W 3HWHU¶V &KXUFK 7KH GHPROLWLRQ ZDV FRQGXFWHG ZLWKRXW SULRU FOHDUDQFH IURP 3&83
/DVW ZHHN RI 0DUFK .DWLSXQDQ 5RDG 83 'LOLPDQ 4XH]RQ &LW\
00'$ GHPROLVKHG WKH VWUXFWXUHV RI IDPLOLHV DORQJ & ,W GLG QRW RIIHU UHORFDWLRQ ,W KDG QR SULRU FOHDUDQFH IURP 3&83
$SULO 6DQJDQGDDQ &DORRFDQ &LW\
7KH KRXVHV RI PRUH WKDQ IDPLOLHV ZHUH GHPROLVKHG DV SDUW RI WKH JRYHUQPHQW¶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
$SULO )RUHPRVW 5&$0 &RUWH 5HDO 6WUHHWV ,QWUDPXURV 0DQLOD
6RPH IDPLOLHV ZHUH HYLFWHG DQG UHORFDWHG WR .DVLJODKDQ 9LOODJH , LQ 0RQWDOEDQ 7KH\ ZHUH RFFXS\LQJ ODQGV SULYDWHO\ RZQHG E\ 0U %DUFHORQ 0DQLOD &LW\ +DOO SURYLGHG WUDQVSRUWDWLRQ 0DQLOD '6:' SURYLGHG IRRG IRU WKUHH GD\V 7KH SURFHVV ZDV SHDFHIXO PDLQO\ EHFDXVH QHJRWLDWLRQV ZLWK WKH ODQGRZQHU DQG WKH JRYHUQPHQW KDG EHHQ RQJRLQJ VLQFH WKH SUHYLRXV \HDU 3&83 DVVLVWHG WKH SHRSOH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$SULO 6DQ 0LJXHO 0DODFDQDQJ
0DQLOD &LW\ +DOO GHPROLVKHG WKH KRXVHV RI IDPLOLHV RFFXS\LQJ DQ DOOH\ LQ WKH DUHD 7KH JRYHUQPHQW RIIHUHG 3 DV FRPSHQVDWLRQ WR VL[ IDPLOLHV ZKLOH WKH UHVW ZKR GLG QRW PHHW WKH SUH TXDOL¿FDWLRQ VXUYH\ FRQGXFWHG E\ WKH FLW\ JRYHUQPHQW GLG QRW UHFHLYH DQ\ FRPSHQVDWLRQ 2WKHU VWUXFWXUH KROGHUV UHFHLYHG 3 UHQWHUV ZHUH RQO\ JLYHQ 3 3&83 DVVLVWHG WKH IDPLOLHV
0D\ /X]RQ $YHQXH &RPPRQZHDOWK 4XH]RQ &LW\
6RPH IDPLOLHV ZHUH HYLFWHG E\ WKH 00'$ IURP WR 0D\ 7KH\ GLG QRW UHFHLYH DQ\ ZULWWHQ QRWLFH QRU ZHUH WKH\ RIIHUHG UHORFDWLRQ 7KH\ ZHQW WR WKH &DUDQJD\ FKDLUPDQ IRU DVVLVWDQFH 7KH FKDLUPDQ DQG WKH SHRSOH ZHQW WR WKH 83$2 WKH RI¿FH RI WKH 0D\RU DQG 3&83 3&83 ¿OHG D FRPSODLQW DW WKH &+5
0D\ %UJ\ ,QWUDPXURV 0DQLOD
6RPH IDPLOLHV YROXQWDULO\ GLVPDQWOHG WKHLU KRXVHV 7KH\ ZHUH UHORFDWHG WR .9,
0D\ )) &UX] /D 0HVD 4XH]RQ &LW\
6RPH IDPLOLHV YROXQWDULO\ GLVPDQWOHG WKHLU KRXVHV 7KH 0:66 JDYH HDFK IDPLO\ 3 DV ¿QDQFLDO DVVLVWDQFH ZKLOH WKH +8'&& SURPLVHG ORWV
6HFRQG ZHHN RI 0D\ %DQDQD ,VODQG ,QWUDPXURV 0DQLOD
6RPH IDPLOLHV YROXQWDULO\ GLVPDQWOHG WKHLU KRXVHV DQG ZHUH UHORFDWHG WR .9,
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
0D\ (DVW $YHQXH DFURVV WKH 3KLOLSSLQH +HDUW &HQWUH 4XH]RQ &LW\
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¿UHG 'DQWH 5H\HV VRQ RI WKH 3UHVLGHQW RI WKH SHRSOH¶V RUJDQLVDWLRQ ZDV PDXOHG E\ 00'$ PHQ 'DQWH KDG MXVW DOLJKWHG IURP D EXV DQG ZDV UXVKLQJ WR WKHLU SODFH ZKLFK ZDV EHLQJ GHPROLVKHG 8QIRUWXQDWHO\ LQ KLV KDVWH KH EXPSHG LQWR WKH GHPROLWLRQ OHDGHU ZKR LQWHUSUHWHG 'DQWH¶V DFWLRQ DV LQWHQWLRQDO 7KH\ WKHQ ORDGHG 'DQWH LQ RQH RI WKH 00'$ YHKLFOHV DQG WRRN KLP WR D %DOLQWDZDN SUHFLQFW 7KH SHRSOH KDYH QRW VHHQ 'DQWH QRU KLV IDWKHU VLQFH WKH LQFLGHQW $ ORFDO ZRPDQ ZKR WRRN SLFWXUHV RI WKH GHPROLWLRQ UHFHLYHG WKH LUH RI WKH OHDGHU RI WKH GHPROLWLRQ ZKR JUDEEHG KHU E\ WKH QHFN DQG WKUHDWHQHG WR GR KHU KDUP LI VKH ZRXOG QRW WXUQ RYHU WKH FDPHUD RU WKH UROO RI ¿OP WR KLP 7KH ZRPDQ UHIXVHG 6RPH RI WKH PHPEHUV RI WKH FRPPXQLW\ ZHQW WR WKH &RPPLVVLRQ RQ +XPDQ 5LJKWV RI¿FH WR DVN WKDW LW VHQG SHUVRQQHO WR WKH GHPROLWLRQ VLWH 7KH\ ZHUH WROG WKDW WKH SHUVRQ LQ FKDUJH ZDV QRW DURXQG DQG ZHUH DVNHG IRU RQH RI WKHP WR ZDLW IRU WKH SHUVRQ¶V DUULYDO 7KH SHRSOH OHIW LQ GLVJXVW 7KH GHPROLWLRQ FUHZ WRRN DZD\ WKH KRXVLQJ PDWHULDOV RI WKH SRRU IDPLOLHV 7KH\ ZHUH QRW LQIRUPHG ZKHUH WKH PDWHULDOV ZHUH WDNHQ 7ZHOYH DIIHFWHG IDPLOLHV WUDQVIHUUHG WR WKH DGMDFHQW '(15 ODQG 7KH '(15 VDLG RQO\ VL[ ZRXOG EH DFFHSWHG EXW WKH SHRSOH ZLWK WKH KHOS RI 3&83 LQVLVWHG RQ IDPLOLHV 7KH GHPROLWLRQ KDG QR SULRU FOHDUDQFH IURP 3&83
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
0D\ 4XH]RQ %ULGJH &UHHNVLGH %UJ\ 6WD &UX] 4XH]RQ &LW\
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
7KH FDVH RI WKH 3KLOLSSLQHV LOOXVWUDWHV DQ LPSRUWDQW OHVVRQ LQ UHODWLRQ WR WKH ZRUN RI 81 +$%,7$7 DQG LWV SDUWQHUV $ 6HFXUH 7HQXUH &DPSDLJQ ZDV ODXQFKHG LQ 2FWREHU LQ WKH 3KLOLSSLQHV ZLWK WKH DGRSWLRQ RI D MRLQW GHFODUDWLRQ ZKLFK FRPPLWWHG WKH *RYHUQPHQW WR DYRLG IRUFHG HYLFWLRQV DQG D YHU\ SURJUHVVLYH 3UHVLGHQWLDO 'HFUHH PDNLQJ LGOH SXEOLF ODQG DYDLODEOH IRU VRFLDO KRXVLQJ WR EHQH¿W WKH XUEDQ SRRU 7KH RQJRLQJ YLRODWLRQV OLVWHG DERYH LOOXVWUDWH WKDW SROLWLFDO ZLOO HYHQ ZKHQ H[SUHVVHG RI¿FLDOO\ LQ HYHQWV RI KLJK YLVLELOLW\ DUH QRW VXI¿FLHQW WR DYRLG EUHDFKHV WR KRXVLQJ ULJKWV DQG WKDW ORFDO DQG LQWHUQDWLRQDO SDUWQHUV QHHG WR HVWDEOLVK PRQLWRULQJ PHFKDQLVPV WR HQVXUH WKDW DOO SDUWLHV DGKHUH WR WKHLU FRPPLWPHQWV
5HSRUWHG &DVH ± 9DULRXV $UHDV -DNDUWD ,QGRQHVLD 5HSRUWV UHFHLYHG E\ $*)( LQGLFDWH WKDW IRUFHG HYLFWLRQV LQ ,QGRQHVLD KDYH UHDFKHG DODUPLQJ OHYHOV -DNDUWD¶V *RYHUQRU UHFHQWO\ RUGHUHG WKH QHZ PD\RUV RI :HVW DQG &HQWUDO -DNDUWD WR DFFHOHUDWH WKH HYLFWLRQ RI VWUHHW YHQGRUV DQG VTXDWWHUV LQ WKHLU UHVSHFWLYH PD\RUDOWLHV ,Q LQ -DNDUWD DORQH DQ HVWLPDWHG SHRSOH ZHUH IRUFLEO\ HYLFWHG IURP WKHLU KRPHV DQG SODFHV RI ZRUN %HWZHHQ $XJXVW DQG 2FWREHU WKH -DNDUWD FLW\ DGPLQLVWUDWLRQ HYLFWHG RYHU FLW\ GZHOOHUV ,Q RWKHU SDUWV RI WKH FRXQWU\ LQFOXGLQJ VWULIH WRUQ SURYLQFHV WKH GHVWUXFWLRQ RI KRXVLQJ DQG WKH ORVV RI ODQG KDYH DOVR EHHQ UHFRUGHG
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$FFRUGLQJ WR &DVVDQGUD *ROGLH D &2+5( ¿HOGZRUNHU ³7KH HYLFWLRQV DUH FDUULHG RXW YLROHQWO\ « ZLWK EXOOGR]HUV VRPHWLPHV ZLWK SHRSOH VWLOO OLYLQJ LQ WKHLU KRPHV´
7RWDO HVWLPDWHG QXPEHU RI LPSOHPHQWHG WKUHDWHQHG HYLFWLRQV 'HF 6HSW ,PSOHPHQWHG HYLFWLRQV
/RFDWLRQ
'DWH
1R RI SHRSOH DIIHFWHG
5HDVRQ
3XORPDV 'DP .D\XSXWLK (DVW -DNDUWD
UHVLGHQWV
(YLFWLRQ FDUULHG RXW E\ WKH -DNDUWD &LW\ $GPLQLVWUDWLRQ 1R LQIRUPDWLRQ DYDLODEOH DV WR WKH PRWLYDWLRQ IRU WKH HYLFWLRQ
&LSLQDQJ 'HFHPEHU 5LYHUEDQNV (DVW -DNDUWD
VOXP GZHOOHUV
1R LQIRUPDWLRQ DYDLODEOH DV WR WKH PRWLYDWLRQ IRU WKH HYLFWLRQ
0XDUD %DUX 3HQMDULQJDQ 1RUWK -DNDUWD
'HFHPEHU
VOXP GZHOOHUV
1R LQIRUPDWLRQ DYDLODEOH DV WR WKH PRWLYDWLRQ IRU WKH HYLFWLRQ
,Q IURQW RI 6HQHQ $WULXP VKRSSLQJ PDOO EHQHDWK WKH 6HQHQ RYHUSDVV -DNDUWD
VLGHZDON YHQGRUV
7KH -DNDUWD &LW\ $GPLQLVWUDWLRQ HYLFWHG VLGHZDON YHQGRUV 9HQGRUV FODLPHG WKDW WKH\ SDLG SROLFH RI¿FHUV EHWZHHQ 5S 86 DQG 5S D GD\ WR NHHS UXQQLQJ WKHLU VWDOOV 2Q -DQXDU\ SXEOLF RUGHU RI¿FHUV HYLFWHG YHQGRUV DQG FDUWHG DZD\ WKHLU PHUFKDQGLVH
3DVDU 0LQJJX 5DJXQDQ DQG 5DMDZDOL 6RXWK -DNDUWD
VLGHZDON YHQGRUV
7KH 6RXWK -DNDUWD $GPLQLVWUDWLRQ IRUFLEO\ UHORFDWHG YHQGRUV WR D QHZ VLWH DIWHU UHTXHVWLQJ WKHP WR PRYH WR WKLV VLWH LQ 1RYHPEHU 7KH YHQGRUV KDG UHIXVHG WR PRYH WR WKH QHZ VLWH LQ IURQW RI WKH 3DVDU 0LQJJX EXV WHUPLQXV DV WKH\ FODLPHG WKDW LW ZDV DOUHDG\ IXOO RI RWKHU YHQGRUV
BBBBBBBBBBBB
&2+5( (YLFWLRQV 0RQLWRU YRO QR
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
,Q IURQW RI WKH 7DPDQ ,VPDLO 0DU]XNL DUWV FHQWUH &LNLQL &HQWUDO -DNDUWD
VWUHHW YHQGRUV
7KH HYLFWLRQ IRUPHG SDUW RI WKH -DNDUWD &LW\ $GPLQLVWUDWLRQ¶V FDPSDLJQ WR HYLFW VWUHHW YHQGRUV 7KH YHQGRUV UHSRUWHGO\ SDLG D µVHFXULW\ IHH¶ RI D PLQLPXP RI 5S SHU PRQWK WR &LNLQL VXEGLVWULFW RI¿FLDOV 2Q 0D\ WKH HYLFWLRQ ZDV FDUULHG RXW E\ DSSUR[LPDWHO\ SXEOLF RUGHU RI¿FHUV 9HQGRUV¶ FDUWV DQG JRRGV ZHUH FRQ¿VFDWHG 2I¿FHUV UHWXUQHG WKH IROORZLQJ GD\ WR FRQ¿VFDWH DQ\ FDUWV DQG JRRGV ZKLFK WKH\ KDG PLVVHG ,Q WKH GD\V IROORZLQJ WKH HYLFWLRQ YHQGRUV KHOG SURWHVWV DQG GHPDQGHG WKH UHWXUQ RI WKHLU EHORQJLQJV
7KUHDWHQHG (YLFWLRQV
/RFDWLRQ
'DWH
-O .HERQ 0HODWL 7DQDK $EDQJ &HQWUDO -DNDUWD
1R RI DIIHFWHG SHRSOH
5HDVRQV
1HLJKERXUV LQ WKH DUHD FRPSODLQHG WKDW WKH KRXVHV ZHUH EHLQJ XVHG IRU SURVWLWXWLRQ &LW\ RI¿FLDOV FODLPHG WKDW WKH WKUHDWHQHG HYLFWLRQ ZDV MXVWL¿HG LQ WHUPV RI %\ODZ 1R RQ SXEOLF RUGHU 7KH &HQWUDO -DNDUWD &LW\ $GPLQLVWUDWLRQ LV WKUHDWHQLQJ WR LPSOHPHQW WKH HYLFWLRQ DQG KDV RIIHUHG HDFK HYLFWHG KRXVH RZQHU 5S DERXW 86 LQ FRPSHQVDWLRQ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
-O 6XULQDP WKH 6FDEELQJ GLVWULFW DQG WKH &LNLQL GLVWULFW &HQWUDO -DNDUWD
0D\
QRW DYDLODEOH
7KLV WKUHDWHQHG HYLFWLRQ ZDV SDUW RI WKH -DNDUWD &LW\ $GPLQLVWUDWLRQ¶V FDPSDLJQ WR HYLFW VWUHHW YHQGRUV
.HPD\RUDQ &HQWUDO -DNDUWD
0D\
UHVLGHQWV
$ WKUHDWHQHG HYLFWLRQ RI UHVLGHQWV OLYLQJ LQ %ORFN % DQG % RI WKH ROG DLUSRUW 7KH .HPD\RUDQ &RPSOH[ 'HYHORSPHQW %RDUG '3 .. SODQV WR EXLOG D FRPPHUFLDO FHQWUH RQ WKH VLWH DQG KDV VLJQHG DQ DJUHHPHQW ZLWK D GHYHORSHU $EGXO 0XLV KHDG RI WKH '3 .. VWDWHG WKDW UHVLGHQWV ZLOO EH FRPSHQVDWHG EXW µLW PD\ QRW EH LQ IXOO¶ 7KH %RDUG PD\ DOVR UHORFDWH WKH UHVLGHQWV ZLWKLQ WKH FRPSOH[ DQG JUDQW WKHP OHJDO OHDVHV 7KH '3 .. DQG UHVLGHQWV KDYH VHW XS D FR RUGLQDWLQJ WHDP WR QHJRWLDWH FRPSHQVDWLRQ DQG UHORFDWLRQ 7KH '3 .. KDV DJUHHG WR VXVSHQG DOO OHJDO DFWLRQ DJDLQVW WKH UHVLGHQWV
-O /HW -HQ 6RHSUDSWR -O 6XU\RSUDQRWR 3DVDU 6HQHQ +DUPRQL 5R[\ /DSDQJDQ %DQWHQJ DQG WKH 7DPDQ ,VPDLO 0DU]XNL DUWV FHQWUH
DQG 1RYHPEHU
VWUHHW YHQGRUV
7KH -DNDUWD $XWKRULWLHV SODQ WR HYLFW VWUHHW YHQGRUV WR HQDEOH WKH FRQVWUXFWLRQ RI WKH VHFRQG DQG WKLUG EXV ZD\ FRUULGRUV ZKLFK ZLOO H[WHQG IURP 3XORJDGXQJ LQ (DVW -DNDUWD WR .DOLGHUHV LQ :HVW -DNDUWD SDVVLQJ WKH 1DWLRQDO 0RQXPHQW 7KH HYLFWLRQ ZDV VFKHGXOHG WR WDNH SODFH EHIRUH WKH ,GXO )LWUL KROLGD\ RQ DQG 1RYHPEHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
([DPSOHV RI LPSOHPHQWHG HYLFWLRQV (DVW &HQJNDUHQJ -HPEDWDQ %HVL DQG .DPSXQJ 6DZDK LQ :HVW -DNDUWD DQG 7HOXN *RQJ LQ 1RUWK -DNDUWD %HWZHHQ $XJXVW DQG 2FWREHU WKH DERYH FRPPXQLWLHV WRWDOOLQJ RYHU XUEDQ SRRU ZHUH LQ VSLWH RI GHWHUPLQHG UHVLVWDQFH UHPRYHG IURP WKHLU KRPHV E\ WKH -DNDUWD &LW\ &RXQFLO DQG WKH ORFDO JRYHUQPHQWV RI -DNDUWD $FFRUGLQJ WR DQ $VLDQ +XPDQ 5LJKWV &RPPLVVLRQ $+5& VWDWHPHQW DW WKH WLPH WKLV OHIW WKH HYLFWHG SHRSOH ³LQ D PLVHUDEOH VLWXDWLRQ DQG WKH\ DUH DIUDLG WKDW WKH VLWXDWLRQ ZLOO EH JHWWLQJ ZRUVH EHFDXVH RI WKH XSFRPLQJ UDLQ\ VHDVRQ´ $+5& H[SUHVVHG WKH FRQFHUQ WKDW ³WKH ODUJH VFDOH HYLFWLRQ LV VSUHDGLQJ WR RWKHU FLWLHV LQ ,QGRQHVLD´ $+5& &2+5( DQG WKH $VLDQ &RDOLWLRQ IRU +RXVLQJ 5LJKWV $&+5 WRRN MRLQW DFWLRQ WR WU\ WR VHFXUH UHPHGLHV IRU WKH HYLFWHG DQG WR SUHYHQW IXUWKHU HYLFWLRQV 9LFWLPV RI WKH HYLFWLRQV GHPDQGHG WKDW WKH ,QGRQHVLDQ 1DWLRQDO &RPPLVVLRQ IRU +XPDQ 5LJKWV .RPQDV +$0 IRUP DQ LQGHSHQGHQW WHDP WR SUREH KXPDQ ULJKWV YLRODWLRQV GXULQJ WKH HYLFWLRQV
3KRWR 8UEDQ 3RRU &RQVRUWLXP
5HVLGHQWV UHIXVH WR OHDYH WKHLU KRPH HYHQ DV D EXOOGR]HU EHJLQV WR GHVWUR\ LW -HPEDWDQ %HVL -DNDUWD $XJXVW
0XDUD $QJNH 5LYHU 3HQMDULQJDQ 1RUWK -DNDUWD 'HFHPEHU ,Q VSLWH RI UHVLVWDQFH WKH HYLFWLRQV FRQWLQXHG )RU H[DPSOH DSSUR[LPDWHO\ SHRSOH OLYLQJ DORQJ WKH EDQNV RI WKH 0XDUD $QJNH 5LYHU LQ 3HQMDULQJDQ 1RUWK -DNDUWD ZHUH HYLFWHG E\ WKH -DNDUWD &LW\ $GPLQLVWUDWLRQ RQ 'HFHPEHU 7KH PHPEHUV RI WKH FRPPXQLW\ KDG ZRUNHG DV ¿VKHUPHQ DORQJ WKH ULYHU 7KH HYLFWLRQ ZDV FRQGXFWHG E\ WKH -DNDUWD &LW\ $GPLQLVWUDWLRQ DV WKH FRPPXQLW\ OLYHG RQ ODQG BBBBBBBBBBBB
6HH $&+5 8UJHQW $SSHDOV KWWS ZZZ DKUFKN QHW XD PDLQ¿OH SKS
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
EHORQJLQJ WR WKH 6WDWH DQG GLG QRW KDYH RI¿FLDO DXWKRULW\ WR OLYH WKHUH 7KH HYLFWHHV ¿OHG D FDVH DJDLQVW WKH 1RUWK -DNDUWD PD\RU DQG WKH 3HQMDULQJDQ GLVWULFW LQ WKH 6WDWH $GPLQLVWUDWLYH &RXUW LQ 'HFHPEHU 7KH &RXUW IRXQG WKH HYLFWLRQ ZDV OHJDO DV WKH HYLFWHHV RFFXSLHG VWDWH ODQG ZLWKRXW FRQVHQW SURKLELWHG E\ $UWLFOH RI /DZ 1R :KLOH WKLV ODZ RQO\ SHUPLWWHG WKH *RYHUQRU WR LVVXH DQ HYLFWLRQ QRWLFH WKH PXQLFLSDOLW\ DGPLQLVWUDWLRQ FRXOG LVVXH D QRWLFH RQ WKH *RYHUQRU¶V RUGHU +RZHYHU -RGL 0DUWRQR WKH SUHVLGLQJ MXGJH LQ WKH FDVH VWDWHG WKDW WKH HYLFWHHV FRXOG ¿OH D FLYLO FDVH DJDLQVW WKH $GPLQLVWUDWLRQ IRU PDWHULDO ORVVHV VXIIHUHG GXULQJ WKH HYLFWLRQ 7DX¿T %DVDUL DQG RWKHU 3HRSOH¶V /HJDO $LG ,QVWLWXWH ODZ\HUV UHSUHVHQWHG WKH HYLFWHHV LQ WKHLU FDVH DJDLQVW WKH 1RUWK -DNDUWD 0D\RU DQG WKH 3HQMDULQJDQ GLVWULFW
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¶V *RYHUQRU LQLWLDWHG D SODQ WR ULG WKH FDSLWDO RI LWV VOXPV DQG UHORFDWH VTXDWWHUV IURP 6WDWH RU SULYDWH ODQG 7KH DIIHFWHG VTXDWWHUV OLYH RQ *RYHUQPHQW RZQHG ODQG EXW PDQ\ KDYH SDLG WR REWDLQ SHUPLWV IURP VXEGLVWULFW RI¿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¿FLDOV KDYH LQ WKH SDVW VROG ORZ FRVW DSDUWPHQWV LQWHQGHG IRU WKH FLW\¶V SRRU WR ZHDOWK\ SHRSOH 7KH *RYHUQRU KDV VWDWHG WKDW HYLFWHHV ZLWKRXW -DNDUWD ,' FDUGV ZLOO QRW EH DEOH WR VWD\ LQ -DNDUWD $SSUR[LPDWHO\ RI HYLFWHHV KROG -DNDUWD ,' FDUGV $ORQJ ZLWK YLFWLPV RI HYLFWLRQV FDUULHG RXW LQ SRWHQWLDO YLFWLPV RI HYLFWLRQV SODQQHG
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
IRU KDYH GHPDQGHG WKDW WKH 0LQLVWU\ IRU 6HWWOHPHQW DQG 5HJLRQDO ,QIUDVWUXFWXUH SUHYHQW *RYHUQRU 6XWL\RVR IURP FDUU\LQJ RXW IXUWKHU HYLFWLRQV XQWLO DOWHUQDWLYH KRXVLQJ KDV EHHQ SURYLGHG 7KH 0LQLVWU\ FODLPHG WKDW LW FRXOG QRW LQWHUIHUH ZLWK WKH &LW\ $GPLQLVWUDWLRQ¶V SROLFLHV 3OXLW 1RUWK -DNDUWD ± 7KHUH LV D SODQQHG HYLFWLRQ RI UHVLGHQWV ZKR REMHFWHG WR D SODQQHG UHQW LQFUHDVH RI IRU WKHLU ORZ FRVW UHQWDO DSDUWPHQWV RZQHG E\ WKH &LW\ 7KH DSDUWPHQW RSHUDWRU 37 -DNDUWD 3URSHUWLQGR KDV LQGLFDWHG KLV LQWHQWLRQV WR LPSOHPHQW WKH HYLFWLRQ 7KH RSHUDWRU IUHTXHQWO\ FXW RII ZDWHU DQG HOHFWULFLW\ VXSSOLHV WR UHVLGHQWV DQG VHFXULW\ JXDUGV HPSOR\HG E\ 37 -DNDUWD 3URSHUWLQGR KDYH LQWLPLGDWHG UHVLGHQWV WR IRUFH WKHP WR SD\ WKH UHQW LQFUHDVH RU OHDYH ,QGRQHVLDQ /HJDO $LG DQG +XPDQ 5LJKWV $VVRFLDWLRQ 3%+, ODZ\HU 'DYLG 6LWRUXV VD\V WKDW UHVLGHQWV GR QRW REMHFW WR D UHQW LQFUHDVH DV VXFK EXW GHPDQG WR GLVFXVV LW ZLWK WKH 2SHUDWRU EHIRUH D ¿QDO GHFLVLRQ LV PDGH 5HVLGHQWV VRXJKW KHOS IURP WKH &LW\ &RXQFLO DQG WKH 1DWLRQDO &RPPLVVLRQ RQ +XPDQ 5LJKWV .RPQDV +$0 ZKR KDYH DVNHG WKH RSHUDWRU WR GHOD\ WKH HYLFWLRQ XQWLO LW KDV GLVFXVVHG WKH UHQW LQFUHDVH ZLWK WKH WHQDQWV .RPQDV +$0 KDV DJUHHG WR PHGLDWH EHWZHHQ WKH UHVLGHQWV DQG WKH 2SHUDWRU 7DQDW 0HUDK 3OXPSDQJ 1RUWK -DNDUWD ± -DQXDU\ 7KLV SODQQHG HYLFWLRQ E\ WKH -DNDUWD &LW\ $GPLQLVWUDWLRQ RI VTXDWWHUV OLYLQJ RQ ODQG ZLWKLQ D P UDGLXV RI 37 3HUWDPLQD VWDWH RLO FRPSDQ\ GHSRW LV PRWLYDWHG E\ FODLPV E\ 6WDWH RI¿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± -DQXDU\ 7KH +DUDSDQ .LWD )RXQGDWLRQ FODLPV WR EH WKH OHJDO RZQHU RI WKH ODQG DQG KDV JUDQWHG SHUPLVVLRQ WR WKH -DNDUWD 0LOLWDU\ &RPPDQG .RGDP -D\D WR EXLOG D KRVSLWDO RQ WKH VLWH 7KLV KRVSLWDO ZRXOG UHSODFH WKH H[LVWLQJ PLOLWDU\ KRVSLWDO LQ .UDPDW &HQWUDO -DNDUWD :KLOH WKH +DUDSDQ .LWD )RXQGDWLRQ PDLQWDLQV WKDW LW RZQV WKH ODQG WKH UHVLGHQWV FODLP WKH ODQG EHORQJV WR WKH IDPLO\ RI (PP\ 1LQJW\DV GH *URRW ZKR SDVVHG DZD\ LQ ODWH 'HFHPEHU 7KH\ KDYH D FRS\ RI D FHUWL¿FDWH VHFXUHG E\ (PP\ JLYLQJ WKHP SHUPLVVLRQ WR OLYH RQ WKH ODQG 1R HYLGHQFH RI WKH )RXQGDWLRQ¶V RZQHUVKLS KDV \HW EHHQ SURGXFHG 1RWLFH RI WKH HYLFWLRQ ZDV UHFHLYHG RQ 'HFHPEHU WKHQ DJDLQ RQ 'HFHPEHU DQG
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
¿QDOO\ RQ -DQXDU\ 7KH HYLFWLRQ ZDV VFKHGXOHG IRU -DQXDU\ EXW ZDV QRW FDUULHG RXW RQ WKLV GDWH (DFK IDPLO\ KDV EHHQ RIIHUHG 5S PLOOLRQ 86 LQ FRPSHQVDWLRQ E\ .RGDP -D\D $FFRUGLQJ WR WKH UHVLGHQWV¶ ODZ\HU %DUWKRORPHXV 'LD] RQO\ HLJKW IDPLOLHV KDYH DFFHSWHG WKH PRQH\ 5HVLGHQWV VD\ WKH\ ZLOO OHDYH ZLWKRXW WDNLQJ DQ\ FRPSHQVDWLRQ PRQH\ LI HYLGHQFH RI WKH )RXQGDWLRQ¶V RZQHUVKLS FDQ EH VKRZQ WR WKHP 5HVLGHQWV FODLP WKH\ DUH QRZ EHLQJ LQWLPLGDWHG E\ WKH $GPLQLVWUDWLRQ WR HQFRXUDJH WKHP WR OHDYH 5HVLGHQWV ¿OHG D ODZVXLW DJDLQVW WKH 0XQLFLSDOLW\ $GPLQLVWUDWLRQ LQ WKH -DNDUWD 6WDWH $GPLQLVWUDWLYH &RXUW RQ 'HFHPEHU FKDOOHQJLQJ WKH YDOLGLW\ RI WKH HYLFWLRQ QRWLFH 7KHUH KDYH EHHQ WZR KHDULQJV RI WKH PDWWHU .RPQDV +$0 WKH 1DWLRQDO &RPPLVVLRQ RQ +XPDQ 5LJKWV KDV DVVLVWHG WKH FRPPXQLW\ DQG DWWHPSWHG WR PHGLDWH EHWZHHQ .RGDP -D\D DQG WKH IDPLOLHV EXW QR DJUHHPHQW KDV EHHQ UHDFKHG 0DODWL 6KRSSLQJ &HQWUH -DNDUWD ± 7KUHDWHQHG HYLFWLRQ -XO\ /RFDO UHVLGHQWV OLYLQJ RQ WKH VLWH RI WKH IRUPHU 0HODWL 'DP .HERQ .DFDQJ &HQWUDO -DNDUWD DUH WKUHDWHQHG ZLWK HYLFWLRQ DV WKHUH DUH SODQV WR FRQVWUXFW D ZKROHVDOH VKRSSLQJ FHQWUH RQ WKH VLWH 7KH GHYHORSHU 37 -DNDUWD 5HDOW\ ZLOO KDYH WR DFTXLUH ODQG EHORQJLQJ WR WKHVH ORFDO UHVLGHQWV 7KH -DNDUWD *RYHUQRU KDV VXSSRUWHG WKH SURMHFW 7KH GHYHORSHU LV FXUUHQWO\ LQ WKH SURFHVV RI DFTXLULQJ WKH QHFHVVDU\ SHUPLWV IRU WKH GHYHORSPHQW WR SURFHHG 7KH *RYHUQRU KDV UHSRUWHGO\ RUGHUHG WKH SHUPLWV WR EH SURFHVVHG 2Q -XQH WKH GHYHORSHU VXEPLWWHG WKH HQYLURQPHQWDO LPSDFW DQDO\VLV WR WKH -DNDUWD (QYLURQPHQWDO 0DQDJHPHQW $JHQF\ 7KH XVXDO SURFHVVLQJ WLPH IRU DQ HQYLURQPHQWDO LPSDFW DQDO\VLV LV IRXU WR VL[ PRQWKV &RQVWUXFWLRQ ZLOO EHJLQ DV VRRQ DV WKH SHUPLWV KDYH EHHQ LVVXHG 7KH VKRSSLQJ FHQWUH LV LQWHQGHG WR RSHQ WRZDUGV WKH HQG RI 7KH GHYHORSHU KDV UHSRUWHGO\ QRW \HW UHDFKHG DJUHHPHQWV ZLWK D VXEVWDQWLDO QXPEHU RI UHVLGHQWV UHJDUGLQJ WKH DPRXQW RI FRPSHQVDWLRQ WR EH SDLG IRU ODQG DQG KRPHV WKDW ZLOO EH FRPSXOVRULO\ DFTXLUHG 6RPH UHVLGHQWV KDYH EHHQ RIIHUHG 5S PLOOLRQ SHU VTXDUH PHWUH EXW DUH DVNLQJ IRU 5S PLOOLRQ SHU VTXDUH PHWUH 2WKHU UHVLGHQWV KDYH QRW \HW EHHQ FRQWDFWHG DERXW WKHLU KRPHV 7KH GHYHORSHU H[SHFWV WKH QHFHVVDU\ SHUPLWV WR EH LVVXHG LQ WKH QHDU IXWXUH 7KH GHYHORSPHQW KDV EHHQ RSSRVHG RQ WKH EDVLV WKDW LW LV WRR FORVH WR RWKHU PDUNHWV $FFRUGLQJ WR %\ODZ 1R D SULYDWH PDUNHW WKDW FRYHUV PRUH WKDQ VTXDUH PHWUHV FDQQRW EH ORFDWHG ZLWKLQ NLORPHWUHV RI RWKHU WUDGLWLRQDO RU FRPPXQLW\ PDUNHWV 7KH SUHVHQW VLWH IRU WKH QHZ VKRSSLQJ FHQWUH LV OHVV WKDQ D NLORPHWUH IURP 7DQDK $EDQJ WH[WLOH PDUNHW
([DPSOHV RI RQJRLQJ HYLFWLRQV -DNDUWD 1RUWK &RDVW 5HVLGHQWV OLYLQJ DORQJ WKH HQWLUH NLORPHWUH -DNDUWD 1RUWK &RDVW IURP 0XDUD .DPDO WR WKH (DVW )ORRG &DQDO DUH WKUHDWHQHG ZLWK HYLFWLRQ E\ -DNDUWD &LW\ $GPLQLVWUDWLRQ¶V -DNDUWD :DWHUIURQW 'HYHORSPHQW %RDUG %3 3DQWXUD $ JURXS RI SHRSOH OLYLQJ LQ $QFRO 7LPXU 1RUWK -DNDUWD KDYH DOUHDG\ EHHQ HYLFWHG 7KLV LV WKH IRXUWK WLPH LQ VHYHQ \HDUV WKDW WKH $QFRO 7LPXU FRPPXQLW\ KDV EHHQ HYLFWHG 7KH\ ZHUH ¿UVW HYLFWHG LQ WKHQ LQ DQG WKHQ DJDLQ LQ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$IWHU HDFK HYLFWLRQ WKH IDPLOLHV PRYHG WR D GLIIHUHQW VLWH LQ WKH DUHD 7KH UHDVRQV JLYHQ IRU WKH HYLFWLRQ DUH SODQV WR SXUVXH D ZDWHUIURQW GHYHORSPHQW IRU ZKLFK ODQG ZLOO KDYH WR EH UHFODLPHG 7KH GHYHORSPHQW ZLOO LQFOXGH OX[XU\ KRXVHV KRWHOV FRQGRPLQLXPV DQ LQGXVWULDO ]RQH D SRUW EXVLQHVV FHQWUHV VKRSSLQJ PDOOV RI¿FHV DQG UHFUHDWLRQDO DUHDV 7KH SURMHFW ZLOO FRVW 5S WULOOLRQ 86 ELOOLRQ DQG LI DSSURYHG ZLOO WDNH DSSUR[LPDWHO\ \HDUV WR FRPSOHWH 7KH H[HFXWLYH FKDLUPDQ RI %3 3DQWXUD 0RFK 6LGDUWD VWDWHG DW RQH SRLQW WKDW QRQH RI WKH ¿VKHUPHQ DQG WKHLU IDPLOLHV ZKR OLYH LQ ULYHU HVWXDULHV DQG DORQJ WKH VKRUH ZRXOG EH HYLFWHG EXW WKH SURMHFW KDV DOUHDG\ FDXVHG WKH HYLFWLRQ RI ¿VKLQJ FRPPXQLWLHV 2Q $SULO D ¿VKLQJ FRPPXQLW\ RI SHRSOH ORFDWHG DW $QFRO 7LPXU 1RUWK -DNDUWD ZDV HYLFWHG 7KH FRPPXQLW\ OLYHG EHKLQG WKH 37 0DQJJDOD .ULGD <XGKD 5XNLQGR EXLOGLQJ &LW\ SXEOLF RUGHU RI¿FHUV FRQGXFWHG WKH HYLFWLRQV 2I¿FHUV DORQJ ZLWK KHDYLO\ DUPHG PLOLWDU\ WURRSV EORFNHG ODQG DFFHVV WR WKH VLWH DQG WKH KRPHV RI $QFRO 7LPXU UHVLGHQWV ZHUH EXUQW GRZQ E\ FLW\ SXEOLF RUGHU RI¿FHUV 6LQFH WKH HYLFWLRQ ODQG DFFHVV KDV EHHQ EORFNHG E\ XQLGHQWL¿HG PHQ $SSUR[LPDWHO\ SHRSOH KDYH EHHQ OLYLQJ RQ WKHLU ERDWV VLQFH WKH HYLFWLRQ 6RPH IDPLOLHV DUH VWD\LQJ WHPSRUDULO\ DW WKH RI¿FHV RI WKH -DNDUWD /HJDO $LG )RXQGDWLRQ /%+ -DNDUWD LQ FHQWUDO -DNDUWD 5HVLGHQWV WKUHDWHQHG ZLWK HYLFWLRQ ¿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¶V DGYHUVH HQYLURQPHQWDO HIIHFWV 2Q -XQH VKH DVNHG -DNDUWD *RYHUQRU 6XWL\RVR WR FRPPLVVLRQ D QHZ SODQ DQG HQYLURQPHQWDO LPSDFW DVVHVVPHQW LQ FRQMXQFWLRQ ZLWK WKH 6WDWH 0LQLVWU\ IRU WKH (QYLURQPHQW
5HSRUWHG &DVH 9LOOD %HUPHMR %XHQRV $LUHV $UJHQWLQD 7KH FLW\ RI %XHQRV $LUHV FDSLWDO RI $UJHQWLQD KDV DSSUR[LPDWHO\ LQKDELWDQWV $FFRUGLQJ WR WKH FHQVXV RI SHRSOH OLYH LQ ORZ LQFRPH FRPPXQLWLHV NQRZQ DV µYLOODV¶ LQ VHWWOHPHQWV RI ORZ LQFRPH KRXVLQJ XQLWV 9LOOD %HUPHMR LV D VHWWOHPHQW ORFDWHG DURXQG WKH UDLO FURVVLQJ FDOOHG µ%HUPHMR¶ QHDU WKH IRUPHU UDLOZD\ RI %HOJUDQR DW 9LOOD /XJJDQR LQ WKH VRXWK DUHD RI %XHQRV $LUHV 6L[W\ IDPLOLHV KDYH EHHQ UHVLGHQW LQ WKH DUHD IRU ¿YH \HDUV RQ DOORWPHQWV RZQHG E\ WKH IHGHUDO JRYHUQPHQW 7KH JRYHUQPHQWDO ERG\ 21$%( µ2UJDQLVPRV 1DFLRQDO GH $GPLQLVWUDFLyQ GH %LHQHV GHO (VWDGR¶
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
UHVSRQVLEOH IRU DGPLQLVWHULQJ WKH SXEOLF DVVHWV RI WKH FRXQWU\ LQLWLDWHG D OHJDO SURFHVV RI HYLFWLRQ DJDLQVW WKHVH IDPLOLHV 7KH IDPLOLHV OLYLQJ DW 9LOOD %HUPHMR RQO\ KHDUG DERXW WKH OHJDO SURFHGXUHV WKURXJK WKH PHGLD 7KH IROORZLQJ VWDWHPHQWV PDGH E\ GZHOOHUV LQ WKH DUHD UHÃ&#x20AC;HFW WKH ODFN RI FRPPXQLFDWLRQ RU QRWLFH JLYHQ DERXW WKH HYLFWLRQ SODQV ³1R RQH IURP WKH JRYHUQPHQW FDPH WR WDON WR XV :H ERXJKW WKH KRXVHV IURP D PDQ ZKR GLVDSSHDUHG DIWHU UHFHLYLQJ WKH PRQH\´ VWDWHG 0V &DUROLQD $OGDSLR SUHVLGHQW RI WKH QHLJKERXULQJ FRPPLVVLRQ ZKR WRJHWKHU ZLWK KHU IRXU FKLOGUHQ KDV EHHQ UHVLGHQW LQ WKH DUHD IRU ¿YH \HDUV ³:H SDLG SHVRV EXW ZH KDYH QR UHFHLSWV DW DOO $QG DV WLPH ZHQW E\ ZH LPSURYHG RXU KRPHV´ VWDWHG 0U $QLEDO 5RPHUR IDWKHU RI VHYHQ IRUPDOO\ XQHPSOR\HG IRU IRXU \HDUV ³, KRSH WKH JRYHUQPHQW GRHVQ¶W WDNH XV DZD\ IURP KHUH´ KH FRQFOXGHG ³:H GRQ¶W ZDQW WR OHDYH WKLV DUHD , GLGQ¶W HDW WR KDYH WKH Ã&#x20AC;RRU PDGH´ VWDWHG 0V ,UPD /HJXL]DPyQ ZKR DPRQJ RWKHU FRQFHUQV ZDV ZRUULHG DERXW QRW KDYLQJ KHU FKLOGUHQ OLYLQJ FORVH WR D VFKRRO LI WKH HYLFWLRQ ZDV FDUULHG RXW ³:H OLYH KHUH EHFDXVH ZH KDYH QR RWKHU RSWLRQ ZH KDYH EHHQ KHUH IRU ¿YH \HDUV DQG QR RQH HYHU VDLG DQ\WKLQJ DERXW KDYLQJ WR OHDYH WKH DUHD´
7KH HYLFWLRQ FDVH ,Q 0D\ WKH SRSXODWLRQ RI %XHQRV $LUHV KHDUG YLD WKH PHGLD DERXW DQ XQSUHFHGHQWHG MXGJHPHQW GHOLYHUHG E\ 0U &ODXGLR %RQDGLR /HJDO -XGJH IURP WKH µ&ULPLQDO \ 3HQDO &RUUHFFLRQDO )HGHUDO¶ 7KH MXGJHPHQW GHQLHG WKH UHTXHVW WR IRUFLEO\ HYLFW WKH IDPLOLHV IURP 9LOOD %HUPHMR WKDW ZDV LQLWLDWHG E\ 21$%( WKH JRYHUQPHQW ERG\ WKDW KDG DWWHPSWHG WR WHUPLQDWH WKH UHVLGHQWV¶ RFFXSDWLRQ RI WKH DUHD 7KH MXGJH QRW RQO\ UHIXVHG WR FULPLQDOL]H WKH RFFXSDWLRQ RI WKH ODQG EXW DOVR RUGHUHG WKDW WKH JRYHUQPHQW PRUH VSHFL¿FDOO\ WKH µ0LQLVWHULR GH (FRQRPLD \ 'HVDUROOR 6RFLDO¶ WKH 0LQLVWU\ RI (FRQRPLF DQG 6RFLDO 'HYHORSPHQW VXVSHQG WKH SODQQHG UHORFDWLRQ RI WKH FRPPXQLW\ XQWLO D GH¿QLWLYH KRXVLQJ VROXWLRQ ZDV SUHVHQWHG WR WKH IDPLOLHV +LV MXGJHPHQW ZDV EDVHG RQ WKH DUJXPHQW WKDW HYHU\ FLWL]HQ KHOG WKH ULJKW RI KDYLQJ D KRXVH LQ ZKLFK WR OLYH ± LQ WHUPV RI $UWLFOHV DQG D RI WKH 1DWLRQDO &RQVWLWXWLRQ DQG LQWHUQDWLRQDO WUHDWLHV LQFOXGLQJ WKH &RYHQDQW RQ (FRQRPLFDO 6RFLDO DQG &XOWXUDO 5LJKWV UDWL¿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¿FLHQW DUHD ZLWK WKH OHJDO VHFXULW\ RI WHQXUH DIIRUGDELOLW\ VXI¿FLHQW OLJKW DQG YHQWLODWLRQ SURYLGHG ZLWK EDVLF LQIUDVWUXFWXUH SURYLVLRQ RI ZDWHU DQG VDQLWDWLRQ LQ DQ DUHD WKDW IDFLOLWDWHV DFFHVV WR ZRUN DQG WR IDFLOLWLHV DQG VHUYLFHV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
21$%(¶V LQWHQWLRQV ,Q WKHLU PRWLYDWLRQ IRU WKH HYLFWLRQ 21$%( DUJXHG WKDW RFFXS\LQJ ODQG ZDV D FULPLQDO PDWWHU LQ WHUPV RI $UWLFOH RI WKH &ULPLQDO &RGH µ&RGLJR 3HQDO¶ $UWLFOH RI WKH &RGH VWLSXODWHG WKDW D SHUVRQ ZKR XVLQJ YLROHQFH RU DQ\ VRUW RI WKUHDWV RFFXSLHG RU HQWHUHG D SURSHUW\ EH LW D KRXVH DQ RSHQ ¿HOG RU D EXLOGLQJ LQ DQ RSHQ DWWHPSW DJDLQVW WKH ULJKW WR SURSHUW\ EH VHQWHQFHG WR EHWZHHQ PRQWKV DQG \HDUV LPSULVRQPHQW ,Q KLV MXGJHPHQW WKH +RQRXUDEOH -XGJH &ODXGLR %RQDGLR VWDWHG ³, UHIXVH WR FULPLQDOL]H FLWL]HQV LQ VRFLDO GLVDGYDQWDJH ZLWK D ORZ LQFRPH SUR¿OH´
,PSOLFDWLRQV RI WKH %RQDGLR MXGJHPHQW 7KH MXGJHPHQW GHOLYHUHG KLJKOLJKWHG WKH 6WDWH¶V REOLJDWLRQ WR VROYH WKH KRXVLQJ SUREOHP ZLWK FRKHUHQW KRXVLQJ SROLFLHV UDWKHU WKDQ FULPLQDOL]LQJ VRFLDO SUREOHPV SDUWLFXODUO\ RFFXSDWLRQV RI ODQG DV WKH GLUHFW UHVXOW RI KRXVLQJ VKRUWDJHV ,Q DGGLWLRQ WKH MXGJHPHQW DOVR DGYRFDWHG WKDW WKH 6WDWH LPSOHPHQW DQG IXO¿O LWV REOLJDWLRQV LQ WHUPV RI WKH OHJLWLPDWH ULJKWV RI FRPPXQLWLHV EH\RQG PHUHO\ WKH OHJDO UHTXLUHPHQWV
6WUDWHJLHV WR KDOW HYLFWLRQV 7KH PHGLD SOD\HG D YLWDO UROH LQ LQIRUPLQJ WKH SXEOLF DQG VSHFL¿FDOO\ WKH UHVLGHQWV RI 9LOOD %HUPHMR DERXW WKH WKUHDWHQHG HYLFWLRQ 7KH KHDGOLQH RI WKH QDWLRQDO QHZVSDSHU /D 1DFLRQ RQ $SULO VWDWLQJ WKDW ³-XGJH UHIXVHV WR HYLFW EXLOGLQJ´ SURYLGHG WKH QHFHVVDU\ LQIRUPDWLRQ DERXW WKH FDVH DQG MXGJHPHQW DQG VHUYHG DV DQ LPSRUWDQW PHGLXP WR LQIRUP WKH SXEOLF DERXW 21$%(¶V LQWHQWLRQV DQG DOVR WKH ULJKWV RI WKH FLWL]HQV RI %XHQRV $LUHV 6(1(&$ µ6HFUHWDULDGR GH (QODFH GH &RPXQLGDGHV $XWRJHVWLRQDULDV¶ SXEOLVKHG DQ DUWLFOH HQWLWOHG ³%HIRUH LOOHJDOLW\ RU DGHTXDWH KRXVLQJ"´ E\ (GXDUGR 5R]DV LQ WKH PDJD]LQH 9LYLHQGD 3RSXODU ,VVXH 1R -XQH ZKLFK KLJKOLJKWHG WKH LPSRUWDQFH RI WKLV MXGJHPHQW DV D SUHFHGHQW WR IXWXUH HYLFWLRQ UHTXHVWV E\ WKH QDWLRQDO JRYHUQPHQW
)XUWKHU GHYHORSPHQWV LQ UHVROYLQJ WKH 9LOOD %HUPHMR PDWWHU 7KH GLUHFWRU RI 21$%( 0U )HUQDQGR 6XDUH] UHVSRQGHG WKDW WKH UHTXHVW WR HYLFW WKH IDPLOLHV ZDV LQLWLDWHG E\ WKH SUHYLRXV DGPLQLVWUDWLRQ LQ $SULO 7KH SUHVHQW DGPLQLVWUDWLRQ WRRN RI¿FH LQ -XQH DQG ZDV DQDO\]LQJ WKH RZQHUVKLS UHJXODULVDWLRQ RI WKH DUHD RU UHVHWWOHPHQW RSWLRQV ZLWK IDFLOLWDWHG ORDQV WR WKH IDPLOLHV 6XDUH] JXDUDQWHHG WKDW KLV RI¿FH ZRXOG ZRUN LQ FROODERUDWLRQ ZLWK µ3ODQ $UUDLJR 3URJUDPD 1DFLRQDO GH 5HJXODUL]DFLyQ 'RPLQLDO GH 7LHUUDV )LVFDOHV¶ WKH 1DWLRQDO 3URJUDPPH RI 2ZQHUVKLS 5HJXODUL]DWLRQ RI /DQG IURP )HGHUDO $VVHWV LQ WKH VHDUFK IRU D VROXWLRQ ³:H ZLOO QRW HYLFW WKH IDPLOLHV´ KH VWDWHG
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
5HSRUWHG &DVH $ 6DQ -XDQ GH /XULJDQFKR /LPD 3HUX ,QWURGXFWLRQ 7KLV FRPPXQLW\ LV YXOQHUDEOH GXH WR WKH VSHFLDO SURMHFW µ3HULIHULFR 9LDO 1RUWH¶ LQ WKH DUHD RI -XDQ 3DEOR ,, LQ WKH GLVWULFW RI 6DQ -XDQ GH /XULJDQFKR LQ WKH HDVW DUHD RI WKH 0HWURSROLWDQ 5HJLRQ RI /LPD 3HUX $SSUR[LPDWHO\ SHRSOH OLYH LQ WKLV GLVWULFW 2I WKH LPPHGLDWHO\ DIIHFWHG IDPLOLHV GR QRW SRVVHVV DQ\ IRUP RI ODQG WLWOH DQG OLYH LQ LQDGHTXDWH KRXVLQJ FRQGLWLRQV DQG ZLWK QR SURYLVLRQ RI ZDWHU RU VDQLWDWLRQ IDPLOLHV GR KRZHYHU KROG ODQG WLWOHV DQG KDYH VRPH EDVLF VHUYLFH SURYLVLRQ 0RVW RI WKH DIIHFWHG IDPLOLHV OLYH LQ UHQWHG KRXVHV LQ WKH VXUURXQGV RI WKH RULJLQDO FRPPXQLW\ 7KH IDPLO\ XQLWV FRQVLVW PDLQO\ RI \RXQJ FRXSOHV ZLWK DQ DYHUDJH RI WR FKLOGUHQ SHU IDPLO\ 0HPEHUV RI WKH FRPPXQLW\ ZRUN SULPDULO\ LQ WKH ORZ LQFRPH LQIRUPDO DQG VHUYLFH VHFWRUV
,QIRUPDWLRQ RQ WKH KLVWRU\ RI WKH FDVH 7KH IDPLOLHV WKUHDWHQHG ZLWK HYLFWLRQ OLYH QHDU WKH KRXVLQJ PXQLFLSDO SURJUDPPH RI 6DQ -XDQ 3DEOR ,, DQG ZHUH UHVLGHQW LQ WKH DUHD EHIRUH WKH LPSOHPHQWDWLRQ RI WKH SURMHFW IRU WKH QHZ URDG V\VWHP FDOOHG µ3HULIpULFR 9LDO 1RUWH¶ 7KLV SURMHFW ZDV LQLWLDWHG E\ WKH 0LQLVWU\ RI 7UDQVSRUWDWLRQ DQG &RPPXQLFDWLRQ GXULQJ WKH SUHVLGHQF\ RI 0U )XMLPRUL DQG ODWHU UHPRGHOOHG E\ WKH 0HWURSROLWDQ 0XQLFLSDOLW\ RI /LPD 7KH PRWLYDWLRQ IRU WKLV SURMHFW ZDV EDVHG RQ WKH QHHG IRU D PRUH Ã&#x20AC;XLG WUDQVSRUWDWLRQ V\VWHP EHWZHHQ WKH FHQWUDO DUHD RI /LPD DQG WKH FLW\¶V DLUSRUW 7KH GHVLJQ RI WKH SURMHFW XOWLPDWHO\ DIIHFWV HLJKW GLVWULFWV RI WKH FLW\ RI /LPD LQFOXGLQJ WKH GLVWULFW RI 6DQ -XDQ GH /XULJDQFKR %DVHG RQ WKLV SURMHFW /D &RPLVLyQ GH )RUPDOL]DFLyQ GH OD 3URSLHGDG ,QIRUPDO &2)235, WKH JURXS FRQWUDFWHG WR UHVHWWOH WKH UHVLGHQWV FRQGXFWHG UHVHDUFK LQ HDFK RI WKH DIIHFWHG KRXVHV 7KH DLP ZDV WR SUHYHQW WKH IDPLOLHV IURP EXLOGLQJ QHZ KRXVLQJ XQLWV RU LPSURYLQJ WKH H[LVWLQJ RQHV LQ WKH OLJKW RI WKH SHQGLQJ URDG SURMHFW +RZHYHU GXH WR WKH ¿QDQFLDO FRVWV UHTXLUHG WR LPSOHPHQW WKH SURMHFW D GH¿QLWLYH GHDGOLQH KDV QRW \HW EHHQ VHW IRU WKH DFWXDO EHJLQQLQJ RI URDG FRQVWUXFWLRQ 7KH IDPLOLHV KDYH WKHUHIRUH EHHQ SUHYHQWHG LQGH¿QLWHO\ IURP FRQVWUXFWLQJ RU UHPRGHOOLQJ WKHLU KRPHV DQG FRQWLQXH WR EH YXOQHUDEOH WR FRQVWDQW WKUHDW RI LPPLQHQW HYLFWLRQ E\ DXWKRULWLHV IURP WKH 0HWURSROLWDQ 0XQLFLSDOLW\ RI /LPD &(35, ± /,0$
0DLQ IDFWV WR GDWH x x x x
WKH SURMHFW µ3HULIHULFR 9LDO 1RUWH¶ ZDV DSSURYHG DQG UHFRJQLVHG DV D SXEOLF XWLOLW\ -XO\ WKH SURMHFW VLJQHG DQ DJUHHPHQW ZLWK &2)235, WR UHVHWWOH WKH DIIHFWHG IDPLOLHV 1RYHPEHU &2)235, FDUULHG RXW ¿HOG UHVHDUFK WR VHW VWDQGDUGV UHJDUGLQJ WKH DIIHFWHG IDPLOLHV -XQH WKH 0LQLVWU\ RI 7UDQVSRUWDWLRQ SURKLELWHG WKH FRQVWUXFWLRQ RI QHZ KRXVLQJ XQLWV DQG WKH LPSURYHPHQW RI WKH H[LVWLQJ KRXVHV E\ D 6XSUHPH &RXUW 'HFUHH 1R
x x x
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
-XO\ WKH 0LQLVWU\ RI 7UDQVSRUWDWLRQ WUDQVIHUUHG WKH SURMHFW WR WKH 0XQLFLSDOLW\ RI /LPD -DQXDU\ WKH 0XQLFLSDOLW\ LVVXHG 5XOH 1R ZKLFK WKUHDWHQHG WR GHPROLVK DQ\ KRXVLQJ LPSURYHPHQWV PDGH LQ WKH LGHQWL¿HG FRPPXQLWLHV $SULO WKH ¿UVW FRRUGLQDWHG PHHWLQJ ZDV KHOG E\ WKH VSHFLDO SURMHFW µ3HULIHULFR 9LDO 1RUWH¶ WR GLVFXVV WKH SUREOHP RI WKH DIIHFWHG IDPLOLHV 7KH PHHWLQJ ZDV DWWHQGHG E\ UHSUHVHQWDWLYHV IURP WKH 0LQLVWU\ RI 7UDQVSRUWDWLRQ DQG &RPPXQLFDWLRQ &2)235, &HSUL /LPD ,03 ,&,/ (0$3( &HQFD '0'8 DQG WKH µ&RPLWH GH 'HIHQVD GH 9LYLHQGDV 9XOQHUDEOHV $IHFWDGDV SRU HO $QLOOR 9LDO¶
/HYHO RI RUJDQLVDWLRQ RI WKH DIIHFWHG FRPPXQLW\ &RPPXQLWLHV LQYROYHG LQ WKH FRQÃ&#x20AC;LFW DUH RUJDQLVHG DW WKH GLVWULFW OHYHO EXW DUH QRW YHU\ DFWLYH 7KH FRPPXQLW\ LV VXSSRUWHG LQ LWV VWDQFH DJDLQVW WKH HYLFWLRQV E\ WKH 0XQLFLSDOLW\ RI 6DQ -XDQ GH /XULJDQFKR DQG SULYDWH LQVWLWXWLRQV VXFK DV WKH µ,QVWLWXWR GH 'HVDUROOR 8UEDQR &HQFD¶ 7$&,) $'5$ ('8&$ (IIRUWV KDYH EHHQ PDGH WR LPSURYH WKH VRFLDO RUJDQLVDWLRQ RI WKH PRVW YXOQHUDEOH IDPLOLHV 5HTXHVWV IRU LQWHUYLHZV KDYH EHHQ PDGH WR WKH FHQWUDO DQG PHWURSROLWDQ JRYHUQPHQWDO DXWKRULWLHV ,Q DGGLWLRQ D PHHWLQJ RI FRQFLOLDWLRQ KDV EHHQ SURSRVHG IRU WKH SDUWLHV LQYROYHG EXW WR GDWH WKHUH KDYH QRW EHHQ DQ\ VDWLVIDFWRU\ GHYHORSPHQWV LQ WKLV UHJDUG $OWKRXJK WKH DXWKRULWLHV KDYH RIIHUHG WR DQDO\VH WKH FDVH WKH\ KDYH QRW SUHVHQWHG DQ\ FRQFUHWH LQIRUPDWLRQ WKXV IDU
)XWXUH LQLWLDWLYHV DQG VWUDWHJLHV WR UHVROYH WKH WKUHDWHQHG HYLFWLRQ 7KLV FDVH IRFXVHV RQ WKH YLRODWLRQ RI ULJKWV RI D ODUJH JURXS RI UHVLGHQWV WR LPSURYH WKHLU KRPHV DQG VHFXUH WHQXUH IRU WKHLU IDPLOLHV 7KH\ DUH SURKLELWHG IURP LPSURYLQJ WKH FRQGLWLRQV RI WKHLU GZHOOLQJV RQ WKH WKUHDW RI GHPROLWLRQ LI WKH\ YLRODWH 0XQLFLSDO UXOHV ,Q DGGLWLRQ WKH\ IDFH WKH WKUHDW RI HYHQWXDO IRUFHG UHPRYDO 'HVSLWH PRWLYDWLRQV PDGH E\ WKH DIIHFWHG FRPPXQLWLHV DQG VXSSRUWLQJ DJHQFLHV JRYHUQPHQWDO DXWKRULWLHV KDYH QRW FRPPLWWHG WR FRQVXOWDWLRQ RU QHJRWLDWLRQV RQ WKLV PDWWHU QRU KDYH WKH\ SUHVHQWHG DQ\ DFFHSWDEOH RU YLDEOH DOWHUQDWLYHV WR FRPPXQLWLHV DIIHFWHG E\ WKH WKUHDWHQHG HYLFWLRQ 'LVFXVVLRQV KDYH EHHQ KHOG RQ WKH SRVVLELOLWLHV RI YLDEOH UHVHWWOHPHQW RSWLRQV DQG DOVR FRQVLGHUDWLRQ RI D SURSRVDO WR SXUFKDVH D SULYDWH DOORWPHQW DV DOWHUQDWLYH ODQG IRU WKH DIIHFWHG UHVLGHQWV $Q DGGLWLRQDO SURSRVDO PDGH LV WKDW ODQG WLWOHV EH LVVXHG WR HQVXUH WKH VHFXULW\ RI WHQXUH RI YXOQHUDEOH FRPPXQLWLHV 7KH DIIHFWHG FRPPXQLWLHV KDYH DOVR SURSRVHG WKDW WKHUH EH D µUH VWXG\¶ RI WKH SUHVHQW SURMHFW¶V URDG GHVLJQ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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¿FHV ¿YH VHFXULW\ DQG VHUYLFHV RI¿FHV IRXU FHQWUHV RI FRPPXQLFDWLRQ ¿YH FKXUFKHV DQG DUHDV WKDW DUH EHLQJ SUHVHQWO\ UHSDLUHG ,Q DGGLWLRQ D PDMRU SURMHFW RI WKH JRYHUQPHQW LQ WKH V WR LUULJDWH WKH IHUWLOH ODQG RI WKH DUHD ZRXOG EH DIIHFWHG DV WKH RSHQLQJ RI WKH PLQLQJ RSHUDWLRQV ZRXOG FRQWDPLQDWH WKH ZDWHU RI 5LYHU 3LXUD FDXVLQJ JUHDW HQYLURQPHQWDO GDPDJH WR WKH DUHD
([SUHVVHG UHDVRQV WR MXVWLI\ WKH HYLFWLRQV RI¿FLDO DQG XQRI¿FLDO
'XULQJ WKH RI¿FH RI 0U )XMLPRUL WKH 'HFUHH (0 ZDV LVVXHG VWDWLQJ WKDW WKH FRQFHVVLRQ RI WKH PLQLQJ H[SORLWDWLRQ LQ 0DQKDWDQ ZRXOG EH DQ DFWLYLW\ RI SXEOLF XWLOLW\ $W WKH VDPH WLPH WKH PD\RU RI 7DPER *UDQGH LVVXHG D SHUPLW WR H[SORLW WKH XUEDQ DUHD 7KH VWDWHG HFRQRPLF DGYDQWDJH RI WKH PLQLQJ H[SORLWDWLRQ ZDV WKDW LW ZRXOG EH PRUH SUR¿WDEOH WKDQ DJULFXOWXUH $FFRUGLQJ WR WKH &RQVWLWXWLRQ RI 3HUX QDWXUDO UHVRXUFHV LQ WKH VRLO LQFOXGLQJ PLQHUDOV DUH WKH VROH SURSHUW\ RI WKH 1DWLRQDO 6WDWH
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µ&ROHFWLYR 7DPER *UDQGH¶ FRQGXFWHG D YLJLO LQ IURQW RI WKH 6FKRRO RI (QJLQHHULQJ RI 3HUX UHJDUGLQJ D SXEOLF KHDULQJ FDOOHG E\ WKH 0LQLVWU\ RI 0LQLQJ DQG (QHUJ\ 7KH SXEOLF KHDULQJ ZDV LQWHQGHG WR OHJLWLPLVH WKH LUUHJXODULWLHV WKDW KDG
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
EHHQ FRPPLWWHG E\ WKH 0LQLQJ &RPSDQ\ 0DQKDWDQ GXULQJ WKH HODERUDWLRQ RI WKH VWXG\ RQ WKH HQYLURQPHQW LPSDFW RI WKH SURMHFW 2Q DQG 1RYHPEHU SHDFHIXO GHPRQVWUDWLRQV ZHUH KHOG LQ WKH FLWLHV RI 7DPER *UDQGH 3LXUD DQG /LPD LQ UHVSRQVH WR WKH SXEOLF KHDULQJV FDOOHG E\ WKH 0LQLVWU\ RI 0LQLQJ DQG (QHUJ\ 7KH 7HFKQLFDO 6XSSRUW *URXS WR 7DPER *UDQGH LVVXHG D SXEOLF PDQLIHVW LQ ZKLFK LW VWDWHG LWV FRQFHUQV DERXW WKH FRQWLQXRXV SRVWSRQHPHQW RI D ¿QDO VROXWLRQ WR WKH PDWWHU QRWLQJ WKDW WKLV ZDV FUHDWLQJ JHQHUDO XQFHUWDLQW\ DQG LQVWDELOLW\ DPRQJVW WKH SRSXODWLRQ
2XWFRPH $Q H[WUDRUGLQDU\ PHHWLQJ RI WKH *RYHUQPHQWDO 5HJLRQDO &RXQFLO IURP 3LXUD &RQVHMR GHO *RELHUQR 5HJLRQDO GH 3LXUD UDWL¿HG D UHJLRQDO DJUHHPHQW GHFODULQJ WKDW WKH 9DOOH\ RI 6DQ /RUHQ]R DQG WKH VXUURXQGLQJ DUHDV EH H[FOXVLYHO\ XWLOLVHG IRU DJULFXOWXUDO DQG FDWWOH DFWLYLWLHV LQ DFFRUGDQFH ZLWK VXVWDLQDEOH XVH RI WKH ODQG ,Q DGGLWLRQ &HQWURPLQ 3HU~ GHFLGHG QRW WR DSSURYH GRFXPHQWV LQWHQGHG WR FUHGLW &RPSDQLD 0LQHUD 0DQKDWDQ 0LQHUDOV &RUSRUDWLRQ 00& ZLWK WKH ULJKW WR H[SORUH DQG H[SORLW WKH PLQLQJ IDFLOLWLHV RI 7DPER *UDQGH
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Ã&#x20AC;HFWHG SXEOLF RSSRVLWLRQ WR WKH PLQLQJ SURMHFW 7KH PD\RU RI 7DPER *UDQGH )UDQFLVFR 2MHGD WKH FRPPXQLW\ RI 7DPER *UDQGH WKH %LVKRS RI 3LXUD DQG RWKHU LQVWLWXWLRQV VXFK DV &ROOHFWLYR 7DPER *UDQGH 0HVD 7HFQLFD GH $SR\R D 7DPER *UDQGH 7HFKQLFDO 6XSSRUW *URXS ZHUH DOO LQYROYHG LQ VHHNLQJ VROXWLRQV WR WKH PDWWHU
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¿F OHJLVODWLRQ UHJDUGLQJ PLQLQJ DFWLYLWLHV LQ XUEDQ DUHDV FRXOG EH OHJLWLPLVHG E\ LQWHUQDWLRQDO WUHDWLHV OLNH $/&$ RU 7/& ± WKLV ZRXOG KDYH PDGH UHYLVLQJ WKH SURFHVV RI WKH FRQFHVVLRQV DOUHDG\ JUDQWHG HYHQ PRUH FRPSOLFDWHG DV FRPSDQLHV FRXOG ¿OH OHJDO SDSHUV DJDLQVW JRYHUQPHQWV WKDW DWWHPSWHG WR SURWHFW WKH HQYLURQPHQW DQG WKH KHDOWK RI WKHLU FLWL]HQV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
6WUDWHJLHV WR KDOW WKH HYLFWLRQV 7KH VWUDWHJ\ XVHG ZDV WR PRELOL]H WKH FRPPXQLWLHV EDVHG RQ SRSXODU FRQVXOWDWLRQ WKDW FODUL¿HG WKH RSLQLRQ RI WKH ORFDO LQKDELWDQWV LQ 7DPER *UDQGH UHJDUGLQJ WKHLU IXWXUH DQG WKHLU RSLQLRQV RQ WKH PLQLQJ DFWLYLWLHV 7KH VWUDWHJ\ DOVR LQFOXGHG WKH RUJDQLVDWLRQ RI D ODUJH VXSSRUW JURXS IRUPHG E\ ORFDO DQG UHJLRQDO HQWLWLHV DQG LQVWLWXWLRQV
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
5HSRUWHG &DVH ±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
&DSWDJH 7KH VLWH RI &DSWDJH JUHZ WKURXJK UXUDO PLJUDWLRQV EXW DOVR WKH PRYHPHQW RI UHIXJHHV DQG GLVSODFHG SHRSOH IURP RWKHU VLWHV LQ 'DNDU ,WV SUR[LPLW\ WR +/0 6LFDS DQG 'LHXSSHXO UHVXOWHG LQ LW EHFRPLQJ DQ DUHD IRU PDUJLQDOLVHG SHRSOH WR FRQJUHJDWH %HWZHHQ ± SHRSOH DUH UHVLGHQW LQ WKH DUHD OLYLQJ SULPDULO\ LQ ZRRGHQ KRXVHV RU VKHOWHUV PDGH RI ZRRGHQ VKHHWV 0RVW GZHOOLQJV DFFRPPRGDWH EHWZHHQ DQG SHRSOH 7KHUH DUH GLIIHUHQW W\SHV RI WHQXUH ULJKWV ZLWKLQ WKH UHVLGHQW FRPPXQLW\ ,W LV GLI¿FXOW WR DVVHVV WKH SHUFHQWDJH RI KRPHV RZQHG DV PDQ\ UHVLGHQWV KDYH H[SHULHQFHG OHJDO SUREOHPV LQ UHJXODULVLQJ WKHLU RFFXSDWLRQ DQG ULJKWV GXH WR DGPLQLVWUDWLYH EORFNDJHV :RPHQ KRZHYHU KDYH WR UHQW WKHLU KRPHV ,Q WHUPV RI VHUYLFH SURYLVLRQ ZDWHU LV FROOHFWHG IURP SXEOLF IRXQWDLQV DQG WUDGLWLRQDO ZHOOV WKHUH DUH VHSWLF DUWHVLDQ SLWV EXW QR VHZDJH UHPRYDO IDFLOLWLHV UHIXVH GLVSRVDO LV WKURXJK FRQYHQWLRQDO
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
DQG WUDGLWLRQDO PHWKRGV FRPPXQLFDWLRQ LV YLD SXEOLF WHOHSKRQHV DQG WKHUH LV VRPH EDVLF HOHFWUL¿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Ã&#x20AC;RRG SODLQ 7KH VWULS RI ODQG RQ ZKLFK VKHOWHUV ZHUH EXLOW ZDV WKHUHIRUH GHHPHG LQDSSURSULDWH IRU KDELWDWLRQ E\ 'DNDU¶V XUEDQ SODQ $OO DWWHPSWV WR UHJXODULVH WKH RFFXSDWLRQ KDYH PHW ZLWK DGPLQLVWUDWLYH EORFNDJHV 'HVSLWH SURPLVHV PDGH E\ WKH 0D\RU WKDW ODQG ZRXOG EH JLYHQ WR SHRSOH UHVLGHQWV VWLOO ZDLW IRU WKLV SURPLVH WR PDWHULDOLVH 5HDVRQ JLYHQ IRU WKH HYLFWLRQV 7KH UHDVRQ JLYHQ IRU WKH HYLFWLRQV ZDV WKH LUUHJXODU RFFXSDWLRQ RI ]RQHV GHVLJQDWHG E\ OHDVH WR VHYHUDO SHRSOH 7KH HYLFWLRQV ZHUH LQVWLWXWHG E\ WKH *RYHUQRU RI 'DNDU DQG WKH 0D\RU RI WKH &RPPRQ 'LVWULFW RI *UDQG <RII 7KH HYLFWLRQV ZHUH LPSOHPHQWHG E\ WKH 'HSXW\ 3UHIHFW DQG WKH SROLFHPHQ RI +DQQ 7KH GXUDWLRQ RI WKH VXPPRQV LVVXHG ZDV IURP )HEUXDU\ ± $SULO 2IIHUV RI UHORFDWLRQ ZHUH PDGH YHUEDOO\ E\ WKH 0D\RU RI 'DNDU ZKR ZDV DOVR WKH 3UHVLGHQW RI WKH 1DWLRQDO $VVHPEO\
3KRWR &2+5(
(YLFWLRQ &DSWDJH 6HQHJDO 6HSWHPEHU
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
7KH &DSWDJH HYLFWLRQV KDYH DIIHFWHG EHWZHHQ DQG SHRSOH 6KRSV DQG PLFUR HQWHUSULVHV FKXUFKHV PRVTXHV WKH ZDWHU IRXQWDLQ UXEELVK GXPS VLWH DQG WKH FKLOGUHQ¶V SOD\JURXQG ZHUH GHVWUR\HG 7KH LPSOHPHQWDWLRQ RI WKH HYLFWLRQ ZDV EUXWDO DQG ZLWKRXW UHVSHFW IRU WKH ULJKWV RU GLJQLW\ RI WKH UHVLGHQWV 7KH DUHD ZDV VHDOHG RII DQG SHRSOH ZKR UHVLVWHG WKH HYLFWLRQ ZHUH KDUDVVHG DQG LQWLPLGDWHG 2WKHU YLRODWLRQV DIIHFWLQJ ULJKWV WR KRXVLQJ x x x x x
+DUDVVPHQW DWWHPSWV DW FRUUXSWLRQ E\ D ORFDO HOHFWHG RI¿FLDO ,QFUHDVH LQ UHQW DV D FRQVHTXHQFH RI WKH HYLFWLRQ 7KH VLWH ZDV UD]HG DQG WKH SHULPHWHU PDUNHW JDUGHQHUV HYLFWHG $OO EDVLF VHUYLFHV ZHUH GHVWUR\HG 2EVWDFOHV WR DFFHVV WR KRXVLQJ DQG EDVLF LQIUDVWUXFWXUH DGPLQLVWUDWLYH EORFNDJHV DQG WKH SURKLELWLYH FRVW RI SORWV x 2EVWDFOHV WR SDUWLFLSDWLRQ MXGLFLDO DQG DGPLQLVWUDWLYH FRPSOLFDWLRQV DQG ¿QDQFLDO GLI¿FXOWLHV x +XPDQ ULJKWV DEXVHV KXPLOLDWLRQV DQG FLWL]HQV¶ ULJKWV WR GHFHQW VKHOWHU ULGLFXOHG E\ RI¿FLDOV $OWHUQDWLYHV WR WKH HYLFWLRQ 7KHUH ZDV SRWHQWLDO IRU WKH LQ VLWX XSJUDGLQJ RI &DSWDJH LQVWHDG RI IRUFHG HYLFWLRQ
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¿WV RI TXRWDV RQ UHFRYHUHG ODQG 7KH FRQVHTXHQFHV RI WKH IRUFHG HYLFWLRQ LQFOXGHG WKH IROORZLQJ x 3HRSOH ORVW WKHLU KRXVLQJ DQG ZHUH IRUFHG LQWR WHPSRUDU\ VKHOWHU x <HDUV RI DJULFXOWXUDO DQG SRXOWU\ IDUPLQJ LQYHVWPHQWV ZHUH GHVWUR\HG x 0DWHULDO DQG GRPHVWLF SURSHUW\ ORVW E\ WKRXVDQGV RI SRRU IDPLOLHV x 3RYHUW\ ZDV PDGH ZRUVH x 3UROLIHUDWLRQ RI PDODULD x 'HDWKV RI FKLOGUHQ WKH HOGHUO\ DQG VSRQWDQHRXV DERUWLRQV E\ ZRPHQ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
7KH 0D\RU RI 'DNDU DUUDQJHG UHVFXH PLVVLRQV GLVWULEXWLQJ WHQWV PHGLFDWLRQ DQG IRRG WR WKH YLFWLPV RI WKH GLVSODFHG GLVWULFWV +H PDGH SURPLVHV WKDW SHRSOH ZRXOG EH JLYHQ ODQG ,Q DQWLFLSDWLRQ RI WKLV D SURSRUWLRQ RI WKH HYLFWHG LQKDELWDQWV ZHUH ZLOOLQJ WR VHWWOH LQIRUPDOO\ RQ ODQG FORVH WR WKH UHVHWWOHPHQW DUHD $OO H[SUHVVHG WKH KRSH RI RQH GD\ DFTXLULQJ D VHFWLRQ ZKHUH WKH\ FRXOG VHWWOH LQ WRWDO VHFXULW\ $OWKRXJK WKH RI¿FLDO UHDVRQ IRU WKH IRUFHG HYLFWLRQV DQG GHPROLWLRQV ZDV WKH DOOHJHG LUUHJXODU RFFXSDWLRQ RI DQ DOORFDWHG ]RQH ZKLFK ZDV DSSRUWLRQHG WKURXJK OHDVH WR VHYHUDO SHRSOH WKLV LV FRQWHVWHG E\ PHPEHUV RI WKH DIIHFWHG FRPPXQLW\ $OOHJDWLRQV KDYH EHHQ PDGH WKDW WKH UHDO UHDVRQV ZHUH WKDW D SDUWLFXODU OREE\ JURXS VRXJKW WR UHGLVWULEXWH WKH ODQG RFFXSLHG E\ VHWWOHUV $OWHUQDWLYH RSWLRQV SURSRVHG WR DYHUW WKH HYLFWLRQ 7KHUH ZHUH RWKHU DOWHUQDWLYHV DYDLODEOH 7KH FRPPXQLW\ VRXJKW WR KROG QHJRWLDWLRQV EHIRUH WKH GHPROLWLRQV LQ WKH KRSH RI GHYHORSLQJ RSWLRQV IRU SRVVLEOH UHORFDWLRQ DQG UHVHWWOHPHQW ZLWK WHQXUH VHFXULW\ RI WKH YLFWLPV RI WKH IRUFHG HYLFWLRQ $SSURDFKHV PDGH E\ FRPPXQLW\ UHSUHVHQWDWLYHV VHHNLQJ GLVFXVVLRQV DQG QHJRWLDWLRQV ZHUH GLVFRXUDJHG E\ 6WDWH RI¿FLDOV ,Q DGGLWLRQ GRFXPHQWV VXEPLWWHG UHTXHVWLQJ WKH UHJXODULVDWLRQ RI RFFXSDWLRQDO ULJKWV ZHUH UHMHFWHG 5HSUHVHQWDWLRQV ZHUH PDGH WR WKH 0D\RU RI WKH 'LVWULFW RI *UDQG <RII WKH 0D\RU RI 'DNDU DQG QXPHURXV GLJQLWDULHV DQG WUDGLWLRQDO FKLHIV IRU FRPSDVVLRQ RQ WKH PDWWHU DQG UHTXHVWV IRU WKHP WR FRPPXQLFDWH WKHVH UHTXHVWV WR VHQLRU 6WDWH RI¿FLDOV 9DULRXV GHOHJDWLRQV YLVLWHG WKH ORFDO DQG 6WDWH DXWKRULWLHV DQG ZHUH SURPLVHG DVVLVWDQFH 7KH DVVLVWDQFH KRZHYHU QHYHU FDPH
.HXU 0ED\H )DOO ([WHQVLRQ 7) ' 3 7KH IRUFHG HYLFWLRQ LQ WKH .HXU 0ED\H DUHD DIIHFWHG SHRSOH IDPLOLHV ZRPHQ FKLOGUHQ DQG RWKHU YXOQHUDEOH JURXSV IURP WKH :HVW $IULFDQ VXE UHJLRQ ,Q WRWDO KRXVHV ZHUH GHVWUR\HG ERWK RFFXSLHG DQG YDFDQW ZLWK HDFK KRXVH QXPEHULQJ EHWZHHQ IRXU DQG VHYHQ FKLOGUHQ 2I¿FLDO UHDVRQV IRU WKH HYLFWLRQ $OOHJDWLRQV KDYH EHHQ PDGH WKDW WKHUH ZDV PLVFRPPXQLFDWLRQ DQG YHVWHG LQWHUHVW LQ DFFHVV WR ODQG LQ WKH DUHD XQGHU WKUHDW DQG WKDW WKHUH ZDV D IDLOXUH RQ WKH SDUW RI RI¿FLDOV WR UHDFK DJUHHPHQW EHWZHHQ WKH SDUWLHV RQ WKH LVVXH RI ODQG XVDJH DQG UHVDOH ,Q DGGLWLRQ SHRSOH WDVNHG ZLWK QHJRWLDWLQJ ZLWK WKH DXWKRULWLHV DUH GHHPHG WR KDYH IDLOHG WR VHFXUH DSSURSULDWH DOWHUQDWLYHV WR WKH HYLFWLRQV 7KH IRUFHG HYLFWLRQ ZDV RYHUVHHQ E\ WKH 0D\RU RI 3LNLQH ZKR WKRXJKW WKDW LW ZDV EDVHG RQ WKH ODQG EHORQJLQJ WR WKH 6WDWH 67& 3LNLQH WKH GHSDUWPHQWDO VHUYLFH RI 3LNLQH LPSOHPHQWHG WKH HYLFWLRQ LQ WKH SUHVHQFH RI WKH 3UHIHFW
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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³LI VRPHRQH ZDQWV WR GHPROLVK P\ KRXVH KH ZLOO KDYH WR NLOO PH LQVLGH LW EHFDXVH ZH FDQQRW GLVSODFH \RX´ 7KLV SURPLVH ZDV UHIXWHG E\ WKH VXEVHTXHQW HYHQWV RQ -XQH LQ ZKLFK UHVLGHQWV RI WKH FRPPXQLW\ ZHUH IRUFLEO\ HYLFWHG ZLWKRXW DQ\ VXPPRQV RU OHJDO EDVLV IRU WKH HYLFWLRQ EHLQJ JLYHQ
2HVW )RLUH 'DNDU 7KH QXPEHU RI SHRSOH DIIHFWHG E\ WKLV HYLFWLRQ QXPEHUHG EHWZHHQ DQG SHRSOH 7ZHQW\ QLQH KRPHV ZHUH GHPROLVKHG GXULQJ WKH LQLWLDO HYLFWLRQ ZLWK PRUH XQGHU WKUHDW 7KH KRPHV DIIHFWHG ZHUH PRVWO\ ZHOO EXLOW EULFN DQG PRUWDU VWUXFWXUHV 7KH HYLFWLRQ ZDV DXWKRULVHG E\ WKH 6WDWH SDUWLFXODUO\ WKH JRYHUQRU RI WKH UHJLRQ RI 'DNDU 7KH HYLFWLRQV ZHUH LPSOHPHQWHG E\ WKH *RYHUQRU¶V DVVLVWDQW DQG WKH QDWLRQDO SROLFH 7KH RI¿FLDO UHDVRQ JLYHQ E\ WKH 6WDWH IRU WKH GHPROLWLRQV ZDV WKDW WKH KRPHV SRVHG D VHFXULW\ ULVN DV WKH\ ZHUH EXLOW LQ WKH Ã&#x20AC;LJKW ]RQH IRU WKH DLUSRUW &RQFHUQ KDV EHHQ H[SUHVVHG WKDW FHUWDLQ KLJK SUR¿OH LQGLYLGXDOV ZLWKLQ 6WDWH VWUXFWXUHV ZHUH LPSOLFDWHG LQ WKH HYHQWV ZKLFK OHG WR WKH GHPROLWLRQV $OOHJDWLRQV ZHUH PDGH WKDW HYHQ LI Ã&#x20AC;LJKW ]RQH VHFXULW\ ZDV WKH RI¿FLDO UHDVRQ WKHUH ZHUH RWKHU LVVXHV LQÃ&#x20AC;XHQFLQJ WKH PDWWHU ± LQFOXGLQJ YHVWHG LQWHUHVWV E\ FHUWDLQ SROLWLFDO OHDGHUV SURSHUW\ DJHQWV DQG FLYLO VHUYDQWV $Q DGGLWLRQDO LVVXH RI FRQFHUQ ZDV WKDW LQ VSLWH RI WKH IDFW WKDW WKH WUDGLWLRQDO YLOODJH RI <RII 7RXJKRU LV VLWXDWHG GLUHFWO\ XQGHU WKH Ã&#x20AC;LJKW ]RQH LW ZDV QRW VXEMHFWHG WR WKH VDPH HYLFWLRQ DQG GHPROLWLRQ RI KRPHV DV WKDW RI WKH RWKHU FRPPXQLW\ 7KH HYHQWV 7KH VXPPRQV ZDV LVVXHG RQ 7KXUVGD\ )HEUXDU\ 6HYHQW\ WZR KRXUV ODWHU WKH EXOOGR]HUV DUULYHG RQ WKH PRUQLQJ RI 6XQGD\ )HEUXDU\ WR VWDUW WKH GHPROLWLRQV 5HSUHVHQWDWLYHV VRXJKW DXGLHQFHV ZLWK UHOLJLRXV DQG SROLWLFDO DXWKRULWLHV WR UHTXHVW WKHLU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
DVVLVWDQFH DQG LQWHUYHQWLRQV WR UHVROYH WKH VLWXDWLRQ $OWKRXJK LQLWLDO UHSUHVHQWDWLRQV KDG EHHQ PDGH SDUWLFXODUO\ WR UHOLJLRXV OHDGHUV SULRU WR WKH GHPROLWLRQV WKH\ ZHUH XQDEOH WR FKDQJH WKH GHFLVLRQ RI WKH 6WDWH RQ WKH PDWWHU $IWHU WKH JRYHUQRU KDG FDOOHG D PHHWLQJ ZLWK WKH UHVLGHQWV¶ JURXS DQG QHJRWLDWLRQV FRPPHQFHG LW VHHPHG DV LI WKH GHPROLWLRQV ZRXOG EH KDOWHG +RZHYHU D QHZ RUGHU ZDV JLYHQ DQG WKH GHPROLWLRQ RI KRPHV EHJDQ ,Q UHVSRQVH WR WKH DFWLYLWLHV RI WKH EXOOGR]HUV UHVLGHQWV EHJDQ WR EORFNDGH WUDI¿F RQ D PDMRU URDGZD\ :LWKLQ WKH FRPPXQLW\ ZRPHQ KDG VSRQWDQHRXV DERUWLRQV GXH WR WKH VKRFN RI WKH GHPROLWLRQV DQG FKLOGUHQ DQG IDPLOLHV ZHUH WUDXPDWLVHG DW WKH ORVV RI WKHLU KRPHV 9LRODWLRQV RI 5LJKWV 7KH VXPPRQV LVVXHG WR WKH RFFXSDQWV RI 2XHVW )RLUH GLG QRW DOORZ VXI¿FLHQW RSSRUWXQLW\ IRU UHVLGHQWV WR JDWKHU WKHLU EHORQJLQJV DQG PDNH DOWHUQDWLYH DUUDQJHPHQWV IRU VKHOWHU ,Q DGGLWLRQ DOWKRXJK LQLWLDO UHSUHVHQWDWLRQV ZHUH PDGH WKH VSHHG ZLWK ZKLFK WKH VXPPRQV ZDV LVVXHG DQG GHPROLWLRQV LPSOHPHQWHG GLG QRW DOORZ WKH RFFXSDQWV WR HQWHU LQWR SURSHU QHJRWLDWLRQV ZLWK WKH DXWKRULWLHV LQ DQ DWWHPSW WR ¿QG DOWHUQDWLYHV WR WKH HYLFWLRQ 7KH FRPPXQLW\ DQG WKHLU VXSSRUWHUV EHOLHYHG WKDW WKHUH FRXOG KDYH EHHQ DOWHUQDWLYHV WR WKH HYLFWLRQ LI SURSHU WLPH DQG QHJRWLDWLRQV KDG EHHQ KHOG WR H[SORUH VXFK RSWLRQV SULRU WR WKH GHPROLWLRQ RI KRPHV DQG OLYHOLKRRGV 7KH ODFN RI FRQVLVWHQF\ LQ WKH DXWKRULWLHV¶ LVVXLQJ RI WKH HYLFWLRQ VXPPRQV WR WKH UHVLGHQWV RI 2XHVW )RLUH EXW QRW WR <RII 7RXJKRU WKH ODWWHU VKRXOG KDYH EHHQ D PRUH FULWLFDO HYLFWLRQ LI WKH PRWLYDWLRQ RI WKH GDQJHU RI OLYLQJ LQ D Ã&#x20AC;LJKW ]RQH ZDV WUXH LQFUHDVHG FRQFHUQV WKDW WKHUH ZHUH RWKHU PRUH VSHFXODWLYH UHDVRQV ZKLFK PD\ KDYH LQIRUPHG WKH HYLFWLRQV DQG GHPROLWLRQV :D\ IRUZDUG 7KH 2XHVW )RLUH FRPPXQLW\ DQG WKHLU UHSUHVHQWDWLYHV KDYH UHTXHVWHG DVVLVWDQFH WR QHWZRUN ZLWK RWKHU FRPPXQLWLHV DIIHFWHG E\ VLPLODU HYLFWLRQV DQG GHPROLWLRQV ZLWK WKH DLP RI JHWWLQJ UHGUHVV 7KH\ DOVR VHHN DVVLVWDQFH LQ OREE\LQJ LQWHUQDWLRQDO DJHQFLHV DQG VWDNHKROGHUV WR DVVLVW WKHLU FDXVH LQ VHDUFK RI UHGUHVV
5HSRUWHG &DVH ± 5RPD &RPPXQLWLHV *UHHFH ,QWURGXFWLRQ )RUFHG HYLFWLRQV RI 5RPD FRPPXQLWLHV IUHTXHQWO\ WDNH SODFH LQ *UHHFH DQG KDYH EHHQ FRPSUHKHQVLYHO\ UHSRUWHG E\ ORFDO RUJDQLVDWLRQV LQFOXGLQJ WKH *UHHN +HOVLQNL 0RQLWRU *+0 7KHVH UHSRUWV KDYH KLJKOLJKWHG D SDWWHUQ RI VHYHUH GLVFULPLQDWLRQ DJDLQVW 5RPD FRPPXQLWLHV WKURXJKRXW WKH FRXQWU\ QRWDEO\ LQ WKH KRXVLQJ VHFWRU ,Q PRVW FDVHV WKHVH IRUFHG HYLFWLRQV DUH FDUULHG E\ RU ZLWK WKH µWROHUDQFH¶ RI ORFDO DXWKRULWLHV DQG IUHTXHQWO\ LQYROYH VLWXDWLRQV RI SROLFH EUXWDOLW\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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
)RUFHG HYLFWLRQV RI 5RPD FRPPXQLWLHV DQG WKH 2O\PSLF *DPHV 7KH UHODWLRQVKLS EHWZHHQ WKH SUHSDUDWLRQ RI WKH 2O\PSLF *DPHV DQG IRUFHG HYLFWLRQV RI 5RPD FRPPXQLWLHV LQ *UHHFH LV WZRIROG ,Q WKH ¿UVW VFHQDULR PXQLFLSDO DXWKRULWLHV XVHG WKH QHHG IRU SUHSDUDWLRQ RI WKH 2O\PSLF *DPHV DV D SUHWH[W WR FDUU\ RXW IRUFHG HYLFWLRQV RI 5RPD FRPPXQLWLHV 7KH 0XQLFLSDOLWLHV RI +DODQGUL $JKLD 3DUDVNHYL $VSURS\UJRV DQG$KDUQDL 0HQLGL ORFDWHG LQ RU QHDU WKH *UHDWHU $WKHQV DUHD KDYH DOO UHVRUWHG WR WKLV DUJXPHQW WR WKUHDWHQ 5RPD VHWWOHPHQWV ZLWK IRUFHG HYLFWLRQ RU WR DFWXDOO\ FDUU\ RXW IRUFHG HYLFWLRQV $FFRUGLQJ WR WKH *UHHN 1DWLRQDO &RPPLVVLRQ IRU +XPDQ 5LJKWV ³LW LV DOVR D IDFW WKDW WKH KROGLQJ RI WKH 2O\PSLF *DPHV KDV EHHQ DQ RFFDVLRQ IRU GULYLQJ WKH 5RPD RXW RI PDQ\ UHJLRQV /RFDO FRPPXQLWLHV YHU\ RIWHQ XQWUXWKIXOO\ LQYRNHG WKH QHHG IRU WKH FRQVWUXFWLRQ RI VSRUWV IDFLOLWLHV LQ RUGHU WR JHW ULG RI WKH 5RPD DV ZDV WKH FDVH LQ 0H[LFR LQ ´ ,Q WKH VHFRQG VFHQDULR WKH DFWXDO FRQVWUXFWLRQ RI LQIUDVWUXFWXUH IRU WKH 2O\PSLF *DPHV KDV UHVXOWHG LQ WKH IRUFHG HYLFWLRQ RI WKH 5RPD FRPPXQLW\ RI 0DURXVL ORFDWHG LQ WKH *UHDWHU $WKHQV DUHD DQG DGMDFHQW WR WKH PDLQ 2O\PSLF FRPSOH[
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¿FHUV RU E\ FLYLOLDQV WKUHDWHQLQJ WR FDOO WKH SROLFH 2Q -XO\ D PXQLFLSDO EXOOGR]HU DOOHJHGO\ DFFRPSDQLHG E\ WKH 0D\RU DQG WKH SROLFH GHPROLVKHG QXPHURXV 5RPD KXWV LQ D 5RPD VHWWOHPHQW VLWXDWHG RQ D JDUEDJH GXPS LQ $VSURS\UJRV 7KH KXWV ZKLFK BBBBBBBBBBBB
6HH WKH UHSRUW RI WKH *UHHN 1DWLRQDO &RPPLVVLRQ IRU +XPDQ 5LJKWV KWWS ZZZ QFKU JU FDWHJRU\ SKS"FDWHJRU\BLG
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
EHORQJHG WR *UHHN DQG $OEDQLDQ 5RPD FRQWDLQHG WKH LQKDELWDQWV¶ SHUVRQDO EHORQJLQJV 7KRVH IDPLOLHV ZKRVH VKDFNV ZHUH QRW GHPROLVKHG ZHUH RUGHUHG WR OHDYH ZLWKLQ WKUHH GD\V 7KH 5RPD WHQW GZHOOHUV OLYLQJ LQ WKH XSSHU SDUW RI WKH JDUEDJH GXPS ZHUH HYLFWHG VRPH GD\V EHIRUH WKLV LQFLGHQW ZKHQ WKH 0D\RU RI $QR /LRVLD D 0XQLFLSDOLW\ ORFDWHG QHDU $VSURS\UJRV RIIHUHG HDFK 5RPD IDPLO\ GUDFKPDV 86 WR OHDYH WKH VHWWOHPHQW )ROORZLQJ WKH 5RPD¶V GHSDUWXUH WKH PXQLFLSDOLW\ GHPROLVKHG WKHLU KRPHV $OO WKH DIIHFWHG 5RPD WKH RQHV HYLFWHG RQ -XO\ DQG WKH RQHV HYLFWHG D IHZ GD\V HDUOLHU UHVHWWOHG LQ RWKHU DUHDV DURXQG $VSURS\UJRV ,Q 6HSWHPEHU WKH PXQLFLSDO DXWKRULWLHV RI $VSURS\UJRV XQGHU WKH RUGHUV RI WKH 0D\RU SURFHHGHG WR GHVWUR\ VL[ KRPHV DQG GDPDJHG RWKHUV XQGHU WKH SUHWH[W RI FDUU\LQJ RXW D µFOHDQLQJ RSHUDWLRQ¶ 7KH RSHUDWLRQ RI 6HSWHPEHU WRRN SODFH LQ D VHWWOHPHQW FORVH WR RQH ZKLFK KDG EHHQ GHVWUR\HG LQ -XO\ 7KH GHPROLWLRQ RI WKH VKDFNV ZDV VWRSSHG IROORZLQJ WKH LQWHUYHQWLRQ RI *+0 DQG RI WKH *UHHN 2PEXGVPDQ¶V 2I¿FH $ )LQGLQJV 5HSRUW E\ WKH *UHHN 2PEXGVPDQ UHOHDVHG RQ -DQXDU\ FRQGHPQHG WKH -XO\ RSHUDWLRQ DQG IRXQG WKDW ³LQ DOO OLNHOLKRRG PHPEHUV RI WKH 0XQLFLSDOLW\ RI $VSURS\UJRV KDYH FRPPLWWHG FULPLQDO DFWV´ 7KH )LQGLQJV 5HSRUW ZDV VXEPLWWHG WR ERWK WKH 3URVHFXWRU¶V 2I¿FH DQG WKH 0LQLVWU\ RI ,QWHULRU 7KH 3URVHFXWRU¶V 2I¿FH LPPHGLDWHO\ ODXQFKHG FULPLQDO SURFHHGLQJV DJDLQVW WKH 0D\RU RI $VSURS\UJRV IRU EUHDFK RI GXW\ 7R GDWH KH UHPDLQV LQ IXQFWLRQ ZKLOH WKH WULDO KDV \HW WR WDNH SODFH DV LW ZDV SRVWSRQHG WZLFH RQ 0D\ DQG )HEUXDU\ ,W LV QRZ VFKHGXOHG WR WDNH SODFH RQ 1RYHPEHU ± ZKLFK LV ¿YH \HDUV DIWHU WKH HYHQW $W WKH DGPLQLVWUDWLYH OHYHO DGPLQLVWUDWLYH SURFHHGLQJV ZHUH ODXQFKHG DJDLQVW WKH 0D\RU RI $VSURS\UJRV IRU WKH GLVFLSOLQDU\ RIIHQFH RI µYLRODWLQJ WKH KXPDQ ULJKWV LQ D VHWWOHPHQW RI J\SVLHV¶ VLF 7KH 0D\RU ZDV QHYHUWKHOHVV DEVROYHG RI DQ\ UHVSRQVLELOLW\
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µ(OSLGD¶ +RZHYHU WKLV DJUHHPHQW ZDV RQO\ DSSOLFDEOH WR WKH *UHHN 5RPD EXW QRW WKH $OEDQLDQ 5RPD 6XFK H[FOXVLRQ UHÃ&#x20AC;HFWV *UHHFH¶V JHQHUDO SROLF\ WR XVH LWV YDULRXV SODQV RQO\ IRU *UHHN 5RPD DQG QRW IRU LPPLJUDQW 5RPD HYHQ LI WKH\ DUH OHJDO UHVLGHQWV ,Q WHUPV RI WKLV VLJQHG DJUHHPHQW WKH *UHHN 5RPD IDPLOLHV ZRXOG YDFDWH WKH SORWV RI ODQG ZKHUH WKH\ KDG EHHQ OLYLQJ IRU GHFDGHV ,Q UHWXUQ WKH DJUHHPHQW VWLSXODWHG WKDW WKH\ ZRXOG UHFHLYH D VLJQL¿FDQW DPRXQW RI PRQH\ DV D UHQW VXEVLG\ HYHU\ PRQWK $V WKH 5RPD KDG WR ¿QG KRXVHV DSDUWPHQWV WKH PRQWKO\ VXEVLG\ IURP WKH 0XQLFLSDOLW\ ZRXOG KHOS WKHP WR SD\ WKH UHQW
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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¶V LQWHJUDWLRQ LQ WKH ORFDO VRFLHW\
7KH 0XQLFLSDOLW\¶V IDLOXUH WR LPSOHPHQW WKH DJUHHPHQW )URP 6HSWHPEHU RQZDUGV DQG RQ WKH EDVLV RI WKLV DJUHHPHQW 5RPD IDPLOLHV VWDUWHG WR OHDYH WKHLU VHWWOHPHQW 6RPH RI WKHP UHQWHG KRXVHV ZKLOH RWKHUV SUHIHUUHG WR JR DQG VWD\ LQ KRXVHV RZQHG RU UHQWHG E\ UHODWLYHV $OWKRXJK WKH 5RPD SURPSWO\ NHSW WKHLU SDUW RI WKH DJUHHPHQW WKH 0XQLFLSDOLW\ RI 0DURXVL KDV UHSRUWHGO\ IDLOHG WR LPSOHPHQW WKH DJUHHPHQW VLJQHG ZLWK WKH 5RPD DVVRFLDWLRQ µ(OSLGD¶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¿OHG DSSOLFDWLRQV IRU KRXVLQJ ORDQV 7KH 0D\RU DOOHJHG WKDW DV VRRQ DV DOO RI WKHP KDG PDGH WKH ORDQ DSSOLFDWLRQV KH ZRXOG UHVXPH SD\PHQW RI WKH PRQWKO\ VXEVLGLHV 6XFK D PRYH FRQVWLWXWHG D FOHDU EUHDFK RI FRQWUDFW DV QR VXFK SURYLVLRQ RU VWLSXODWLRQ H[LVWHG LQ WKH LQLWLDO DJUHHPHQW ,Q -DQXDU\ WKH 0XQLFLSDOLW\ RI 0DURXVL FODLPHG WR KDYH SDLG WKH 5RPD IDPLOLHV WKH PRQH\ LW RZHG WKHP PRQH\ ZKLFK LQ VRPH FDVHV FRQFHUQHG WKH VXEVLGLHV RI PRQWKV RU PRUH $FFRUGLQJ WR WKH RI¿FLDO UHVSRQVLEOH DW WKH 0DURXVL 0XQLFLSDOLW\ IRU WKH SD\PHQWV WR WKH 5RPD ZLWK ZKRP D UHSUHVHQWDWLYH RI WKH *UHHN +HOVLQNL 0RQLWRU *+0 VSRNH GXULQJ WKH ZHHN RI $SULO DOO IRUW\ 5RPD IDPLOLHV ZHUH SDLG WKURXJK WR 'HFHPEHU 1HYHUWKHOHVV WKH 0D\RU RI 0DURXVL LQ D OHWWHU WR WKH *UHHN 2PEXGVPDQ¶V RI¿FH GDWHG )HEUXDU\ VWDWHG WKDW RQO\ 5RPD IDPLOLHV KDG EHHQ SDLG DOO WKH PRQH\ ZKLFK WKH\ ZHUH RZHG XQWLO -DQXDU\ 7KH OHWWHU DOVR PHQWLRQHG WKDW DQRWKHU IDPLOLHV KDG EHHQ SDLG XQWLO 1RYHPEHU 7KH 0LQLVWU\ RI WKH ,QWHULRU LQ DQ DQVZHU WR D 3DUOLDPHQWDU\ TXHVWLRQ RQ -DQXDU\ UHLWHUDWHG WKLV IDFW ,Q DGGLWLRQ ERWK WKH 0D\RU¶V GRFXPHQW DQG WKH 0LQLVWU\¶V GRFXPHQW UHIHUUHG WR IDPLOLHV ZKHUHDV WKH DJUHHPHQW UHIHUUHG WR 5RPD IDPLOLHV 1R MXVWL¿FDWLRQ KDV EHHQ DGYDQFHG IRU WKLV GLVFUHSDQF\ $V D UHVXOW RI WKH DERYH DV RI 0DUFK WKH 0XQLFLSDOLW\ RZHV HDFK 5RPD IDPLO\ WKH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
HTXLYDOHQW RI HLJKW PRQWKV¶ VXEVLGLHV ZKLOH WKRVH IDPLOLHV ZKR KDYH UHQWHG KRXVHV DUH QRZ IDFLQJ WKH LPPLQHQW WKUHDW RI HYLFWLRQ DV WKH\ KDYH IDOOHQ LQ DUUHDUV LQ WKH SD\PHQW RI UHQW WR WKHLU ODQGORUGV ,Q DGGLWLRQ WR WKH 0XQLFLSDOLW\¶V IDLOXUH WR SURYLGH WKH VXEVLGLHV UHSRUWV LQGLFDWH WKDW LW DOVR IDLOHG WR WDNH VWHSV WR LPSOHPHQW WKH UHVHWWOHPHQW SDUWV RI WKH DJUHHPHQW L H WHPSRUDU\ UHVHWWOHPHQW LQWR SUHIDEULFDWHG KRXVHV DQG SHUPDQHQW RQHV $OWKRXJK WKH 5RPD IDPLOLHV KDYH UHSRUWHGO\ DVNHG WKH 0D\RU VHYHUDO WLPHV WR WHOO WKHP ZKHUH WKH SUHIDEULFDWHG KRXVHV ZLOO EH ORFDWHG KH KDV QRW \HW DQVZHUHG
)RUFHG HYLFWLRQ DQG KRXVH GHPROLWLRQ RI $OEDQLDQ 5RPD LQ 3DWUDV 7KH PXQLFLSDOLW\ RI 3DWUDV DQG WKH ORFDO SROLFH ZLWKRXW DQ\ RI¿FLDO ZDUQLQJ DUULYHG DW WKH VHWWOHPHQWV RI 0DNULJLDQQL DQG *ODINRV RQ 2FWREHU DQG SURFHHGHG WR IRUFH WKH 5RPD WR GLVPDQWOH WKH VWUXFWXUHV LQ ZKLFK WKH\ OLYHG ,Q VRPH FDVHV HYHQ WKRXJK WKH RFFXSDQWV ZHUH QRW SUHVHQW WKH RI¿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¶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¿OHG DQ LQMXQFWLRQ DJDLQVW WKHVH SURWRFROV VFKHGXOHG WR EH KHDUG RQ 0D\ 0DQ\ UHIHUHQFHV ZHUH PDGH LQ WKH LQMXQFWLRQ WR ERWK GRPHVWLF DQG LQWHUQDWLRQDO KXPDQ ULJKWV VWDQGDUGV DQG MXULVSUXGHQFH FDOOLQJ IRU WKH QRQ HYLFWLRQ RI 5RPDQL FRPPXQLWLHV IURP SORWV RI ODQG RQ ZKLFK WKH\ ZHUH VTXDWWLQJ XQWLO VXLWDEOH DOWHUQDWLYH UHORFDWLRQ VLWHV KDYH EHHQ IRXQG 7KH 5RPD ZHUH DOVR JUDQWHG D WHPSRUDU\ LQMXQFWLRQ VXVSHQGLQJ WKHLU HYLFWLRQ IURP WKH VLWH XQWLO WKH DGMXGLFDWLRQ RI WKH LQMXQFWLRQ RQ 0D\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
)RUFHG HYLFWLRQ RI D 5RPD IDPLO\ LQ $JKLD 3DUDVNHYL 2Q )HEUXDU\ DW K LQ WKH 3IHNDNLD DUHD RI WKH PXQLFLSDOLW\ RI $JKLD 3DUDVNHYL *UHDWHU $WKHQV D FRXUW EDLOLII DQG D EXOOGR]HU HVFRUWHG E\ SROLFH RI¿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¿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¿HV WKDW 6WDWHV PXVW HQVXUH SULRU WR DQ\ HYLFWLRQV WKDW DOO IHDVLEOH DOWHUQDWLYHV DUH H[SORUHG LQ FRQVXOWDWLRQ ZLWK DIIHFWHG SHUVRQV ZLWK D YLHZ WR DYRLGLQJ RU DW OHDVW PLQLPL]LQJ WKH QHHG WR XVH IRUFH $FFRUGLQJ WR *HQHUDO &RPPHQW 1R DGHTXDWH DQG UHDVRQDEOH QRWLFH VKRXOG DOVR EH JLYHQ WR DOO DIIHFWHG SHUVRQV SULRU WR WKH VFKHGXOHG GDWH RI HYLFWLRQ ,Q WKH *UHHN 2PEXGVPDQ KLJKOLJKWHG ZKHQ UHIHUULQJ WR WKH 5RPD OLYLQJ LQ WKH 3IHNDNLD DUHD WKDW ³«WKH YLROHQW H[SXOVLRQ RI WKHVH SHUVRQV IURP WKH ODQGV WKH\ QRZ RFFXS\ FDQ RQO\ EH SHUPLWWHG RQ WKH FRQGLWLRQ WKDW WKHLU UHPRYDO LV SUHFHGHG E\ WKH LPSOHPHQWDWLRQ IURP WKH DGPLQLVWUDWLRQ RI PHDVXUHV ZKLFK ZRXOG HQVXUH WKHLU SURSHU UHORFDWLRQ LQ DQRWKHU VXLWDEOH VSDFH ZKHUH WKH\ ZLOO UHVLGH SHUPDQHQWO\ XQGHU FRQGLWLRQV ZKLFK PHHW WKH EDVLF KHDOWK DQG KXPDQ GLJQLW\ VWDQGDUGV RI OLYLQJ´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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
IDPLOLHV IDFLQJ D SHQGLQJ HYLFWLRQ RUGHU ,Q DGGLWLRQ ZKLOH QR JHQXLQH FRQVXOWDWLRQV KDYH WDNHQ SODFH ZLWK WKH 5RPD SUHVVXUH KDV EHHQ UHFHQWO\ H[HUFLVHG RQ WKHP WR DFFHSW D UHVHWWOHPHQW RIIHU ZKLFK WKH\ KDG QR RSSRUWXQLW\ WR GLVFXVV DQG WKDW WKH\ XOWLPDWHO\ GLVDJUHHG ZLWK ZKLOH D SUHYLRXVO\ DJUHHG XSRQ UHVHWWOHPHQW KDV QRW EHHQ LPSOHPHQWHG ,Q WKLV UHVSHFW WKH (XURSHDQ &RPPLVVLRQ DJDLQVW 5DFLVP DQG ,QWROHUDQFH KLJKOLJKWHG LWV FRQFHUQ WKDW LQ *UHHFH ³« IRUFLEOH FROOHFWLYH HYLFWLRQV RI 5RPD IDPLOLHV KDYH WDNHQ SODFH ZLWKRXW DQ\ UHVHWWOHPHQW DOWHUQDWLYH EHLQJ SURSRVHG´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¿QDO RIIHU 7KH FRPPDQGHU RI WKH ORFDO SROLFH VWDWLRQ DOVR DWWHQGHG WKH PHHWLQJ DQG LPSOLFLWO\ H[HUWHG SUHVVXUH RQ WKH 5RPD WR DFFHSW WKH PD\RU¶V RIIHU )ROORZLQJ D YLVLW WR WKH SURSRVHG UHORFDWLRQ VLWH 5RPD PDGH LW FOHDU WKDW WKH\ GLG QRW ZLVK WR EH UHORFDWHG WR $QR /LRVVLD EXW SUHIHUUHG WR EH UHORFDWHG LQ 6SDWD DV WKH\ KDG DJUHHG WR LQ WKH SDVW 7KH PXQLFLSDOLW\ RI $JKLD 3DUDVNHYL KDV PDGH LW FOHDU WKDW WKH UHORFDWLRQ WR 6SDWD LV QR ORQJHU IHDVLEOH DQG KDV HQFRXUDJHG WKH 5RPD WR ¿QG SORWV RI ODQG XS WR D FHUWDLQ YDOXH ZKLFK WKH 0XQLFLSDOLW\ RI $JKLD 3DUDVNHYL ZRXOG WKHQ SXUFKDVH DQG WUDQVIHU WR WKH 5RPD $FFRUGLQJ WR ODWHVW LQIRUPDWLRQ UHFHLYHG IRXU 5RPD IDPLOLHV KDYH H[SUHVVHG DQ LQWHUHVW LQ WKLV SURSRVDO
5HPHGLHV 7KH DERYH FDVHV UHÃ&#x20AC;HFW D ZLGHVSUHDG SUDFWLFH RI LOOHJDO IRUFHG HYLFWLRQV RI µXQGHVLUDEOH¶ 5RPD LQ *UHHFH ,Q PRVW FDVHV ORFDO PXQLFLSDO DXWKRULWLHV DUH UHVSRQVLEOH IRU WKH LPSOHPHQWDWLRQ RI WKH IRUFHG HYLFWLRQV ,Q DGGLWLRQ WR HYLFWLQJ 5RPD WKH\ IDLO WR LPSOHPHQW DJUHHG UHVHWWOHPHQW DQG FRPSHQVDWLRQ SODQV )XUWKHUPRUH LQ FDVHV ZKHUH FRPSHQVDWLRQ DQG UHVHWWOHPHQW DUH SURYLGHG WKHVH RIWHQ H[FOXGH QRQ *UHHN 5RPD ZKR KDYH OHJDO UHVLGHQF\ VWDWXV LQ *UHHFH 7KLV GLVFULPLQDWRU\ SUDFWLFH VKRXOG EH FRQGHPQHG DW WKH KLJKHVW RI¿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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
FRQFHUQ KDV EHHQ H[SUHVVHG WKDW PXQLFLSDO DXWKRULWLHV ZLOO KDYH QR LQFHQWLYH WR FKDQJH WKHLU DWWLWXGH DQG DELGH E\ LQWHUQDWLRQDO KXPDQ ULJKWV VWDQGDUGV )LQDOO\ DGHTXDWH FRPSHQVDWLRQ DQG UHVWLWXWLRQ VKRXOG EH SURYLGHG WR DOO YLFWLPV RI IRUFHG HYLFWLRQV
5HSRUWHG &DVH $OFkQWDUD 4XLORPER &RPPXQLWLHV %UD]LO ,QWURGXFWLRQ 7KH 4XLORPER FRPPXQLWLHV ORFDWHG LQ WKH PXQLFLSDOLW\ RI $OFkQWDUD 6WDWH RI 0DUDQKmR QRUWKHDVW UHJLRQ RI %UD]LO ZKLFK DUH WKUHDWHQHG ZLWK HYLFWLRQ DUH WKH FRPPXQLWLHV RI &DQHODWLXD ,WDSHUD 0DQXQLQKD 0DWR *URVVR %ULWR 9LVWD $OHJUH &DLDYD %DUDFDWDWLXD 0DPXQD 6DQWD 0DULD (QJHQKR 5HWLUR 6mR 3DXOR 8UX 0LULP 7DSHUD 3RQWH GR 0XULR 8UX *UDQGH ,WDSHUD 3LUDMXQD DQG $OHJUH
5HDVRQV JLYHQ E\ WKH 6WDWH IRU WKH HYLFWLRQ 7KH PRWLYDWLRQ JLYHQ IRU WKH HYLFWLRQ LV WKH QHFHVVLW\ RI H[SDQVLRQ RI WKH 6SDFH /DXQFK &HQWUH LQ $OFk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mR IURP WR 7KH 6SDFH /DXQFK &HQWUH FXUUHQWO\ RFFXSLHV DOPRVW RI WKH PXQLFLSDO WHUULWRU\ RI $OFkQWDUD ZKLFK LV WKRXVDQG KHFWDUHV LQ H[WHQW DQG SUDFWLFDOO\ SUHYHQWV DOO DFFHVV WR WKH EHDFKHV DV LW RFFXSLHV DOPRVW WKH HQWLUH DUHD RI WKH FRDVW
(VWLPDWHG QXPEHU RI IDPLOLHV DIIHFWHG 7KH FRPSOHWH SURMHFW RI WKH &/$ LV GHVLJQHG WR EH LPSODQWHG LQ IRXU SKDVHV 3KDVH , DQG 3KDVH ,, KDYH DOUHDG\ EHHQ FRPSOHWHG UHVXOWLQJ LQ WKH IRUFHG GLVSODFHPHQW RI QHDUO\ SHRSOH 0RVW RI WKHVH SHRSOH GLG QRW UHFHLYH FRPSHQVDWLRQ QRU WLWOHV WR WKH ODQGV ZKHUH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
WKH\ ZHUH SUHFDULRXVO\ UHVHWWOHG 7KH H[SDQVLRQ RI WKH &/$ DQG WKH LPSOHPHQWDWLRQ RI 3KDVHV ,,, DQG ,9 ZLOO UHVXOW LQ WKH IRUFHG GLVSODFHPHQW RI PRUH WKDQ LQKDELWDQWV RI 4XLORPER FRPPXQLWLHV
%DFNJURXQG DQG KLVWRU\ RI 4XLORPER FRPPXQLWLHV 4XLORPERV DUH WKH FRPPXQLWLHV ZKLFK ZHUH FRQVWLWXWHG RXW RI WKH VWUXJJOH RI UHEHO VODYHV GXULQJ WKH FHQWXULHV RI VODYHU\ ± IURP WKH WK WR WK FHQWXULHV ± DV WHUULWRULHV RI KRXVLQJ UHVLVWDQFH DQG VRFLDO RUJDQL]DWLRQ 7KH\ UHSUHVHQWHG WKH HQMR\PHQW RI DXWRQRP\ DV D UHDFWLRQ WR ZKLWH GRPLQDWLRQ 7KH PDMRULW\ RI 4XLORPER ODQGV KDYH EHHQ RFFXSLHG DQG PDQDJHG FROOHFWLYHO\ 7KH\ FDQ EH FRQVLGHUHG DV LQGLYLVLEOH WHUULWRULHV ZKHUH WKH FRPPXQLWLHV OLYH ZRUN DQG H[SUHVV WKHLU FXOWXUHV DQG EHOLHIV +RZHYHU WKHVH FRPPXQLWLHV KDYH EHHQ OLYLQJ XQGHU WKH FRQVWDQW WKUHDW RI ODQG FRQÃ&#x20AC;LFW 7KH QRUWKHDVW FRPSULVHV RI WKHVH FRPPXQLWLHV ZKLFK DUH FRQFHQWUDWHG LQ WKH 6WDWHV RI %DKLD DQG 0DUDQKmR ,Q WKH VWDWH RI 0DUDQKmR WKH PXQLFLSDOLW\ RI $OFkQWDUD FRPSULVHV RI 4XLORPER FRPPXQLWLHV 7KH PXQLFLSDOLW\ RI $OFkQWDUD ZDV IRXQGHG LQ DQG LWV HFRQRP\ ZDV EDVHG RQ WKH SURGXFWLRQ RI VXJDU FDQH DQG FRWWRQ VXVWDLQHG E\ VODYH ODERXU $W WKH HQG RI WKH WK FHQWXU\ ZLWK WKH GHFOLQH RI WKH HFRQRP\ WKH DEROLWLRQ RI VODYHU\ DQG WKH DSSURSULDWLRQ RI ODQGV E\ WKH FKXUFK DQG VWDWH PDQ\ 4XLORPER FRPPXQLWLHV ZHUH IRUPHG LQ WKH PXQLFLSDOLW\ 7KLV UHVXOWHG LQ WKH HVWDEOLVKPHQW RI SHUPDQHQW FRPPXQLWLHV DV LV FXUUHQWO\ UHÃ&#x20AC;HFWHG LQ WKH PXQLFLSDOLW\ /RFDWHG NLORPHWUHV IURP 6mR /XtV WKH VWDWH FDSLWRO $OFkQWDUD KDV LQKDELWDQWV DQG LV PDLQO\ VXVWDLQHG E\ WRXULVP DV WKH FLW\ KDV ULFK KLVWRULFDO DVVHWV ,W LV FRQVLGHUHG D µ1DWLRQDO &LW\ 0RQXPHQW¶ DFFRUGLQJ WR QDWLRQDO OHJLVODWLRQ 1RZDGD\V $OFkQWDUD LV DFNQRZOHGJHG DV HWKQLF WHUULWRU\ DV WKH 4XLORPER FRPPXQLWLHV FRQVWLWXWH WKH PDMRULW\ RI LWV SRSXODWLRQ 7KHLU VXEVLVWHQFH LV JXDUDQWHHG E\ WKH SUDFWLFH RI ¿VKLQJ DQG DJULFXOWXUH +RZHYHU PRVW RI WKHP OLYH XQGHU FRQGLWLRQV RI SRYHUW\ DQG H[FOXVLRQ ZLWK SUHFDULRXV DFFHVV WR ZDWHU HGXFDWLRQ DQG KHDOWK IDFLOLWLHV 7KH 4XLORPERV UHSUHVHQWHG UHVLVWDQFH WR ZKLWH GRPLQDWLRQ 7KH VODYHV GHVWUR\HG WRROV DQG SODQWDWLRQV PXUGHULQJ ODQGRZQHUV DQG RUJDQL]LQJ UHEHOOLRQV DQG PDVV HVFDSHV 7KLV OHG LQ VRPH FDVHV WR WKH HVWDEOLVKPHQW RI 4XLORPERV +RZHYHU WKHLU FXUUHQW JRDO LV WR FKDQJH WKH FRQFHSW RI D µ4XLORPER¶ VR WKDW LW LV QRW VLPSO\ DVVRFLDWHG ZLWK VLWXDWLRQV H[SHULHQFHG LQ WKH SDVW E\ UHEHO VODYHV WKH $IUR GHVFHQGDQWV ZLVK WR EH ORRNHG XSRQ IURP WKH SHUVSHFWLYH RI WKHLU FXUUHQW YDOXHV DQG FXOWXUH 7KH 4XLORPERV DGDSWHG WR WKH HFRORJLFDO DQG HFRQRPLF FRQGLWLRQV RI WKH UHJLRQ ZKHUH WKH\ ZHUH VHWWOHG DQG SURGXFHG WKH IRRG DQG PDWHULDOV QHHGHG IRU VXUYLYDO LQ DFFRUGDQFH ZLWK WKHLU WUDGLWLRQV DQG WKH RSSRUWXQLWLHV DYDLODEOH LQ WKHLU HQYLURQPHQW 7KH\ SUDFWLFHG FRPPXQLW\ EDVHG DJULFXOWXUH LQVWHDG RI WKH PRQRFXOWXUH V\VWHP DQG ZHUH DOVR HQJDJHG LQ FRPSOHPHQWDU\ DFWLYLWLHV WR PHHW WKHLU QHHGV 7KH ODUJHVW DQG EHVW RUJDQL]HG 4XLORPERV KDG FRPSOH[ UHODWLRQVKLSV ZLWK EURDGHU VRFLHW\ 7KH\ IRUPHG DOOLDQFHV ZLWK VPDOO ODQGRZQHUV SHGGOHUV DQG WUDGHUV LQ RUGHU WR EDUWHU WKHLU VXUSOXV SURGXFWLRQ IRU JRRGV WKH\ FRXOG QRW SURGXFH WKHPVHOYHV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$OWKRXJK FXUUHQWO\ WKHVH FRPPXQLWLHV DUH SULPDULO\ ORFDWHG LQ UXUDO DUHDV VXUURXQGLQJ VPDOO DQG PHGLXP FLWLHV DQG DUH FRPSULVHG RI SHDVDQWV RU ZRUNLQJ SHRSOH WKH\ DUH YHU\ GHSHQGHQW RQ WKH FLWLHV LQ RUGHU WR DFKLHYH WKH EHVW FRQGLWLRQV DQG TXDOLW\ RI OLIH 7KHLU H[LVWHQFH ZDV XQNQRZQ WR WKH PDMRULW\ RI WKH SRSXODWLRQ XQWLO D IHZ \HDUV DJR WKH\ ZHUH VRFLDOO\ LQYLVLEOH (YHQ ZLWK WKH ULJKW WR ODQG EHLQJ OHJDOO\ HQVXUHG E\ WKH 1DWLRQDO &RQVWLWXWLRQ RI DQG E\ &RQYHQWLRQ RI WKH ,QWHUQDWLRQDO /DERXU 2UJDQL]DWLRQ ,/2 RI ZKLFK %UD]LO LV D PHPEHU FXUUHQW QDWLRQDO SXEOLF SROLFLHV KDYH QRW EHHQ VXI¿FLHQW WR DYHUW WKH H[WUHPH YXOQHUDELOLW\ DQG LQVHFXULW\ RI WHQXUH ZKLFK WKHVH FRPPXQLWLHV IDFH GDLO\ 7KH )HGHUDO *RYHUQPHQW RI %UD]LO VSHFL¿FDOO\ WKH 0LQLVWU\ RI 6FLHQFH DQG 7HFKQRORJ\ WKH 6WDWH *RYHUQPHQW RI 0DUDQKmR DQG WKH 0XQLFLSDO *RYHUQPHQW RI $OFkQWDUD KDYH EHHQ UHVSRQVLEOH IRU WKH FR RUGLQDWLRQ DQG LPSOHPHQWDWLRQ RI WKH HYLFWLRQV 7KH DIIHFWHG FRPPXQLWLHV KDYH VXIIHUHG IRUFHG UHVHWWOHPHQWV DQG WKUHDWV RI IRUFHG HYLFWLRQV GLVSODFHPHQWV VLQFH DV D FRQVHTXHQFH RI MXGLFLDO FRQGHPQDWLRQ SURFHHGLQJV DQG D )HGHUDO *RYHUQPHQW OHG HIIRUW WR LQVWDOO WKH 6SDFH /DXQFK &HQWUH LQ $OFkQWDUD 0RUH UHFHQWO\ WKH VLWXDWLRQ GHWHULRUDWHG ZLWK WKH VLJQLQJ RI WZR 7HFKQRORJLFDO 3URWHFWLRQ $JUHHPHQWV LQ DQG EHWZHHQ WKH %UD]LOLDQ DQG 86 *RYHUQPHQWV DQG WKH %UD]LOLDQ DQG 8NUDLQLDQ *RYHUQPHQWV 7KH $JUHHPHQWV WUDQVIHUUHG FRQWURO RI WKH /DXQFK &HQWUH WR WKH 8QLWHG 6WDWHV DQG WKH 8NUDLQH DQG JXDUDQWHHG WKHLU WHFKQRORJLFDO SURWHFWLRQ EHVLGHV DOORZLQJ WKH FRPPHUFLDO H[SORLWDWLRQ RI WKH &HQWUH LQ FOHDU FRQWUDGLFWLRQ RI WKH LQLWLDO SXUSRVHV RI WKH SURMHFW
7KH PDLQ HYHQWV WKXV IDU 7KH GLVSRVVHVVLRQ E\ WKH VWDWH RI 0DUDQKmR RI DQ DUHD RI KHFWDUHV RI ODQG DQG LWV GRQDWLRQ WR WKH 0LQLVWU\ RI $HURQDXWLFV IRU WKH LPSOHPHQWDWLRQ RI WKH 6SDFH /DXQFK &HQWHU LQ $OFkQWDUD 7KH &R RSHUDWLRQ 3URWRFRO ZDV VLJQHG EHWZHHQ WKH 0LQLVWU\ RI $HURQDXWLFV DQG WKH VWDWH RI 0DUDQKmR JLYLQJ MXULVGLFWLRQ WR WKH 6WDWH IRU WKH UHVHWWOHPHQW RI WKH ¿UVW IDPLOLHV WR EH GLVSODFHG 7KH FUHDWLRQ RI WKH &/$ E\ )HGHUDO 'HFUHH QR ZLWK WKH REMHFWLYH RI SHUIRUPLQJ DQG VXSSRUWLQJ VSDFH H[SORUDWLRQ VFLHQWL¿F WHVWV DQG H[SHULPHQWV RI QDWLRQDO SROLWLFDO LQWHUHVW 7KH VLJQLQJ RI WKH QHZ $FFRUG EHWZHHQ WKH 8QLRQ 6WDWH RI 0DUDQKmR DQG WKH 0XQLFLSDOLW\ RI $OFkQWDUD LQ ZKLFK WKH 6WDWH ZDV KHOG UHVSRQVLEOH IRU H[HFXWLQJ DOO WKH GLVSRVVHVVLRQV QHFHVVDU\ IRU WKH LPSOHPHQWDWLRQ RI WKH &/$ DQG IRU WUDQVIHULQJ WKH GRPDLQ RI WKH DUHD WR WKH 8QLRQ 7KH IRUFHG HYLFWLRQ DQG UHVHWWOHPHQW RI SHRSOH WR DUHDV QHDU WKH &/$ FDOOHG µ$JURYLOODV¶ 7KH IDPLOLHV ZHUH UHVHWWOHG RQ KHFWDUHV RI ODQG HYHQ WKRXJK WKH QDWLRQDO OHJLVODWLRQ /DQG 6WDWXWH KDG HVWDEOLVKHG WKDW WKH PLQLPXP UXUDO DOORWPHQW ZRXOG EH KHFWDUHV 7KLV UHVHWWOHPHQW GLPLQLVKHG WKH HFRQRPLF VXVWDLQDELOLW\ RI WKH IDPLOLHV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
7KH IRUFHG HYLFWLRQ RI PRUH WKDQ SHRSOH $ 3UHVLGHQWLDO 'HFUHH GHFODUHG KHFWDUHV RI ODQG IRU SXEOLF XVH IRU WKH H[SDQVLRQ RI WKH &/$ 7KH 'HFUHH UHVXOWHG LQ WKH WUDQVIHU RI DOO OHJDO VXLWV RI HYLFWLRQV DQG LQGHPQL¿FDWLRQV IURP WKH VWDWH WULEXQDOV WR WKH IHGHUDO WULEXQDOV PDNLQJ WKH GHIHQFH RI WKH GLVSODFHG IDPLOLHV LQ WKH 4XLORPER FRPPXQLWLHV PRUH GLI¿FXOW 7KH &/$ DQG WKH 0LQLVWU\ RI $HURQDXWLFV DXWKRUL]HG WKH FRPPHUFLDO H[SORLWDWLRQ RI WKH &HQWUH E\ WKH %UD]LOLDQ &RPSDQ\ RI $LUSRUW ,QIUDVWUXFWXUH ,1)5$(52 7KH VLJQLQJ RI WKH 7HFKQRORJLFDO 6DIHJXDUGLQJ $JUHHPHQW EHWZHHQ %UD]LO DQG WKH 86$ DOORZLQJ WKH SRVVLELOLW\ RI $PHULFDQ URFNHW ODXQFKHV IURP WKH &/$ QRW \HW UDWL¿HG E\ WKH 1DWLRQDO &RQJUHVV 7KH )RUHLJQ 5HODWLRQV DQG 'HIHQFH RI WKH 6HQDWH &RPPLVVLRQ DSSURYHG 'HFUHH QR ZKLFK LQVWLWXWHG WKH 7HFKQRORJLFDO 6DIHJXDUGLQJ $JUHHPHQW EHWZHHQ %UD]LO DQG WKH 8NUDLQH DXWKRUL]LQJ WKH XVH RI WKH &/$ E\ WKH 8NUDLQH %RWK DJUHHPHQWV DUH KDUPIXO WR WKH GHYHORSPHQW RI QDWLRQDO VFLHQWL¿F DQG WHFKQRORJLFDO SROLFLHV DV WKH\ SURKLELW WKH WUDQVIHU RI WHFKQRORJ\ IURP WKH 86$ DQG 8NUDLQH WR %UD]LO 7KH YLDELOLW\ RI ERWK DJUHHPHQWV ZLOO GHSHQG RQ WKH LPSOHPHQWDWLRQ RI 3KDVHV ,,, DQG ,9 RI WKH &/$ H[SDQVLRQ SURMHFW ZKLFK ZLOO UHVXOW LQ WKH IRUFHG GLVSODFHPHQW RI PRUH WKDQ SHRSOH WR DUHDV ORFDWHG IDU IURP WKH FRDVW DQG DOUHDG\ GHQVHO\ SRSXODWHG E\ RWKHU 4XLORPER FRPPXQLWLHV 7KH 81 6SHFLDO 5DSSRUWHXU IRU $GHTXDWH +RXVLQJ 0U 0LORRQ .RWKDUL DQG WKH 1DWLRQDO 5DSSRUWHXU IRU WKH 5LJKW WR +RXVLQJ FDUULHG RXW D IDFW ¿QGLQJ PLVVLRQ WR %UD]LO LQ -XQH DQG YLVLWHG WKH DIIHFWHG FRPPXQLWLHV RI IRUFHG GLVSODFHPHQW LQ $OFkQWDUD 7KH )HGHUDO *RYHUQPHQW FUHDWHG WKH *(, WKH ,QWHU PLQLVWHULDO ([HFXWLYH *URXS ZKLFK LV FRPSULVHG RI WKH 3UHVLGHQWLDO &LYLF $IIDLUV 2I¿FH 0LQLVWULHV RI 6FLHQFH DQG 7HFKQRORJ\ 'HIHQFH $JUDULDQ 'HYHORSPHQW &LWLHV +HDOWK (GXFDWLRQ 7RXULVP 3ODQQLQJ &XOWXUH (QYLURQPHQW $JULFXOWXUH (QHUJ\ DQG 0LQHV ([WHUQDO 5HODWLRQV /DERXU DQG (PSOR\PHQW 6RFLDO 'HYHORSPHQW DQG +XQJHU &RPEDW WKH 6HFUHWDULDW RI 3ROLWLFDO &RRUGLQDWLRQ WKH 6SHFLDO 6HFUHWDULDW IRU 3ROLFLHV RI 3URPRWLRQ RI 5DFLDO (TXDOLW\ WKH 6SHFLDO 6HFUHWDULDW IRU ZDWHU XVH LPSURYHPHQW DQG ¿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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
SDUWLFLSDQW 1*2V DQG FRPPXQLWLHV GR QRW DFFHSW DQ\ W\SH RI UHORFDWLRQ DV WKH\ KDYH WKH ULJKW WR UHPDLQ LQ WKH DUHDV WUDGLWLRQDOO\ RFFXSLHG DQG WKH\ GR QRW ZDQW WKH H[SDQVLRQ RI WKH &/$ 7KH )HGHUDO *RYHUQPHQW DOVR VWDWHG WKDW WKH &/$ ZLOO EH PDQDJHG E\ WKH FLYLO VHFWRU RI WKH JRYHUQPHQW DQG QRW E\ WKH PLOLWDU\ DQ\ ORQJHU 7KH 4XLORPER FRPPXQLWLHV DIIHFWHG E\ WKH LPSOHPHQWDWLRQ RI 3KDVHV , DQG ,, RI WKH &/$ SHRSOH ZHUH IRUFHIXOO\ HYLFWHG DQG UHVHWWOHG LQ µDJURYLOODV¶ QHDU WKH &/$ XQGHU WKH IROORZLQJ FRQGLWLRQV x 7KH FRPPXQLWLHV ZHUH QRW FRQVXOWHG DQG WKHUH ZHUH QR GLVFXVVLRQV RQ WKH UHVHWWOHPHQW SURMHFW x 1R SULRU HYDOXDWLRQ RFFXUHG RI WKH VRFLDO HFRQRPLF DQG FXOWXUDO UHDOLW\ RI WKH FRPPXQLWLHV WR GHWHUPLQH WKH EHVW PHWKRGV RI UHVHWWOHPHQW x (DFK IDPLO\ ZDV JXDUDQWHHG MXVW RQH ORW RI KHFWDUHV WKH PLQLPXP HVWDEOLVKHG E\ IHGHUDO OHJLVODWLRQ LV KHFWDUHV ORFDWHG RQ ODQG ZLWK SRRU DJULFXOWXUDO DQG VXEVLVWHQFH FRQGLWLRQV x 7KH IDPLOLHV GLG QRW UHFHLYH DQ\ W\SH RI ¿QDQFLDO VXSSRUW QRU DFFHVV WR FUHGLW IRU DJULFXOWXUDO GHYHORSPHQW x 7KH $JURYLOODV GR QRW KDYH EHDFK DFFHVV ZKLFK UHVWULFWV WKH ¿VKLQJ DFWLYLWLHV RI WKH FRPPXQLW\ ZKLFK ZDV D PHDQV RI WKHLU VXUYLYDO 7R KDYH EHDFK DFFHVV WKH ¿VKHUPHQ KDYH WR ZDON PRUH WKDQ NLORPHWUHV DQG FDUU\ LGHQWL¿FDWLRQ FDUGV WR SDVV WKURXJK WKH JDWHV RI WKH &/$
&RQVHTXHQFHV IRU WKH DIIHFWHG FRPPXQLWLHV x 7KH GLUHFW VRFLDO FRQVHTXHQFH RI WKHVH IRUFHG UHVHWWOHPHQWV KDV EHHQ WKH GHVWUXFWLRQ RI WKHLU VRFLDO DQG FXOWXUDO RUJDQL]DWLRQ WKDW KDV KLVWRULFDOO\ JXDUDQWHHG WKHLU VXUYLYDO x 7KH FRPPXQLWLHV UHPDLQLQJ LQ WKH DUHD RI WKH &/$ DUH WKUHDWHQHG ZLWK IRUFHG GLVSODFHPHQW DOWKRXJK WKHUH KDYH QRW EHHQ DQ\ UHVHWWOHPHQW SURMHFWV SUHVHQWHG RU GLVFXVVHG x 7KH FRPPXQLWLHV WKDW ZLOO KDYH WR DFFRPPRGDWH WKH GLVSODFHG SRSXODWLRQ GXH WR WKH H[SDQVLRQ RI WKH &/$ DUH WKUHDWHQHG ZLWK VRFLDO HFRQRPLF DQG FXOWXUDO LPEDODQFH
7KH OHYHO RI RUJDQLVDWLRQ RI WKH DIIHFWHG FRPPXQLW\ DQG VXSSRUW JURXSV 7KH 1DWLRQDO &R RUGLQDWLRQ RI 4XLORPER &RPPXQLWLHV &21$4 LV FRPSULVHG RI UHSUHVHQWDWLYHV IURP HYHU\ 6WDWH DQG UHSUHVHQWV WKH PDMRULW\ RI WKH FRPPXQLWLHV 4XLORPER FRPPXQLW\ JURXSV KDYH ZRUNHG DFWLYHO\ WR UHVLVW WKH HYLFWLRQV ZLWK OHJDO DVVLVWDQFH DQG VRPH FRPPXQLW\ RUJDQLVDWLRQDO ZRUN E\ $&21(584 $VVRFLDWLRQ RI 5XUDO 1HJUR 4XLORPER &RPPXQLWLHV RI 0DUDQKmR 60'+ 0DUDQKmR 6RFLHW\ RI +XPDQ 5LJKWV 3yOLV ,QVWLWXWH &2+5( DQG WKH 1DWLRQDO 5DSSRUWHXU RQ WKH 5LJKW RI $GHTXDWH +RXVLQJ DQG 8UEDQ /DQG 7KH OHYHO RI H[WHUQDO LQYROYHPHQW LQ WKH VWUXJJOHV RI WKH FRPPXQLW\ DJDLQVW WKH SODQQHG IRUFHG UHORFDWLRQV HYLFWLRQV LV UHODWLYHO\ ORZ 6RPH VXSSRUW ZRUN KDV EHHQ GRQH E\ $&21(584 &HQWUH RI *OREDO -XVWLFH 3yOLV ,QVWLWXWH DQG &2+5(
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
1R UHVHWWOHPHQW SURMHFWV KDYH EHHQ SUHVHQWHG RU GLVFXVVHG ZLWK WKH FRPPXQLWLHV WKUHDWHQHG ZLWK HYLFWLRQ ZKLFK VWLOO UHVLGH LQ WKH DUHD DIIHFWHG E\ WKH &/$ 7KH RULJLQDO SURSRVDO ZDV WR UHVHWWOH WKHP LQ DUHDV FXUUHQWO\ RFFXSLHG E\ RWKHU 4XLORPER FRPPXQLWLHV
$FWLRQV WDNHQ E\ WKH 4XLORPER FRPPXQLWLHV DQG VXSSRUWLQJ DJHQFLHV WR UHVLVW WKH HYLFWLRQ DQG WR GHYHORS FUHDWLYH DOWHUQDWLYH VROXWLRQV ,Q D QXPEHU RI WKH DIIHFWHG FRPPXQLWLHV VXSSRUWHG E\ WKH 60'+ WKH 1*2 *OREDO &HQWUH RI -XVWLFH WKH $&21(584 WKH )HGHUDWLRQ RI $JULFXOWXUDO :RUNHUV RI 0DUDQKmR DQG *OREDO ([FKDQJH SUHVHQWHG D SHWLWLRQ WR WKH ,QWHU $PHULFDQ &RPPLVVLRQ RQ +XPDQ 5LJKWV ,Q WKLV SHWLWLRQ WKH\ DOOHJHG YLRODWLRQV RI KXPDQ ULJKWV FRPPLWWHG E\ WKH IHGHUDO JRYHUQPHQW RI %UD]LO DQG E\ WKH JRYHUQPHQW RI 0DUDQKmR DJDLQVW WKH 4XLORPER FRPPXQLWLHV ZKLFK ZHUH IRUFLEO\ HYLFWHG &2+5( SUHVHQWHG DQ DPLFXV FXULDH EULHI EHIRUH WKH ,QWHU $PHULFDQ &RPPLVVLRQ LQ VXSSRUW RI WKH PDLQ SHWLWLRQ ,Q D QDWLRQDO SOHELVFLWH FRYHULQJ WKH %UD]LOLDQ 6WDWHV ZDV KHOG RQ WKH $PHULFDQ )UHH 7UDGH $JUHHPHQW $/&$ DQG WKH 6SDFH /DXQFK &HQWUH LQ $OFkQWDUD &/$ 2I WKH WRWDO YRWHV FDVW UHVSRQGHG µ12¶ WR WKH IROORZLQJ TXHVWLRQ ³6KRXOG WKH %UD]LOLDQ JRYHUQPHQW GHOLYHU D SDUW RI LWV WHUULWRU\ WKH %DVH LQ $OFkQWDUD WR WKH 86 PLOLWDU\"´ ,Q $SULO LQ RUGHU WR DVVLVW WKH FRPPXQLWLHV LQ WKHLU VWUXJJOH WR FKDQJH WKHLU VRFLDO UHDOLW\ &2+5( FDUULHG RXW D MRLQW PLVVLRQ ZLWK WKH 1DWLRQDO 5DSSRUWHXU RQ WKH 5LJKW WR $GHTXDWH +RXVLQJ DQG 8UEDQ /DQG LQ WKH PXQLFLSDOLW\ RI $OFkQWDUD 6WDWH RI 0DUDQKmR 7KH PLVVLRQ KDG DV D SULPDU\ REMHFWLYH WR YHULI\ IDFWV DQG SURSRVH IHDVLEOH VROXWLRQV WR WKH KXPDQ ULJKWV YLRODWLRQV RI WKH 4XLORPER FRPPXQLWLHV ZKLFK ZHUH LQFXUUHG ZLWK WKH LPSOHPHQWDWLRQ RI WKH 6SDFH /DXQFK &HQWUH E\ WKH )HGHUDO *RYHUQPHQW %HVLGHV RUJDQLVLQJ D SXEOLF KHDULQJ RQ WKH PDWWHU DWWHQGHG E\ UHSUHVHQWDWLYHV RI WKH DIIHFWHG FRPPXQLWLHV DQG ERWK WKH )HGHUDO DQG 6WDWH JRYHUQPHQWV DQG VHYHUDO VRFLDO RUJDQL]DWLRQV &2+5( DOVR FR SURGXFHG WKH UHSRUW ³$ 6LWXDomR GRV 'LUHLWRV +XPDQRV GDV &RPXQLGDGHV 1HJUDV H 7UDGLFLRQDLV GH $OFkQWDUD´ ³7KH 6LWXDWLRQ RQ +XPDQ 5LJKWV LQ 7UDGLWLRQDO 1HJUR &RPPXQLWLHV LQ $OFkQWDUD´ LQ SDUWQHUVKLS ZLWK 3ODWIRUP '+(6& 3yOLV ,QVWLWXWH DQG 2;)$0 %UD]LO 7KLV SXEOLFDWLRQ UHFRUGV WKH DFWLYLWLHV RI WKH PLVVLRQ LQ DGGLWLRQ WR UHSRUWV RQ 4XLORPER UHVLGHQWV DQG UHFRPPHQGDWLRQV WR WKH )HGHUDO 6WDWH DQG 0XQLFLSDO *RYHUQPHQWV UHJDUGLQJ ODQG WLWOLQJ H[HFXWLRQ RI VRFLDO SXEOLF SROLFLHV DQG WKH LPPHGLDWH VXVSHQVLRQ RI IRUFHG HYLFWLRQV DQG GLVSODFHPHQWV 7KH UHSRUW ZDV SXEOLFO\ ODXQFKHG GXULQJ WKH UG 1DWLRQDO (QFRXQWHU RI 4XLORPER &RPPXQLWLHV ZKLFK ZDV KHOG LQ 5HFLIH LQ 'HFHPEHU
6WUDWHJLHV IRU IXWXUH DFWLRQ &2+5( LV OHDGLQJ D QDWLRQDO FDPSDLJQ ZKLFK VHHNV WR SURYLGH WLWOHV RI RZQHUVKLS WR DOO FRPPXQLWLHV RI 4XLORPERV LQ %UD]LO 7KLV FDPSDLJQ KDV EHHQ LPSOHPHQWHG LQ SDUWQHUVKLS ZLWK WKH 1DWLRQDO &R RUGLQDWLRQ RI 4XLORPER &RPPXQLWLHV &21$4 7KH FDPSDLJQ SDUWQHUV DUH FRPPLWWHG WR SURPRWLQJ LVVXHV DIIHFWLQJ SHRSOH RI $IULFDQ GHVFHQW DQG LQWHQG WR JHQHUDWH EURDG EDVHG VXSSRUW IRU WKLV LVVXH &2+5( LV DOVR SURYLGLQJ OHJDO DVVLVWDQFH WR WKHVH FRPPXQLWLHV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
LQ RUGHU WR FRQWULEXWH WR WKH SRVLWLYH FKDQJH RI WKHLU VRFLDO UHDOLW\ /HJDO WUDLQLQJ DQG FDSDFLW\ EXLOGLQJ DFWLYLWLHV DUH FRQGXFWHG WR VWUHQJWKHQ WKH DELOLW\ RI 4XLORPER FRPPXQLWLHV WR OREE\ LQ WKH QDWLRQDO JRYHUQPHQW IRU WKH DFKLHYHPHQW RI WKHLU GHPDQGV UHJDUGLQJ ODQG WLWOLQJ +RZHYHU VSHFL¿FDOO\ ZLWK UHJDUGV WR WKH FRPPXQLWLHV RI $OFkQWDUD VWUDWHJLHV IRU IXWXUH DFWLRQV VWLOO QHHG WR EH GHYHORSHG ,W LV DOVR QHFHVVDU\ WR GLVFXVV VWUDWHJLHV LQ RUGHU WR DYHUW WKH H[SDQVLRQ RI WKH /DXQFK &HQWUH SURSRVHG E\ WKH *RYHUQPHQW DQG WR GLVFXVV WKH VWHSV WR EH XQGHUWDNHQ WR GHYHORS DQ DOWHUQDWLYH SODQ IRU UHVHWWOHPHQW 7KLV SURFHVV VKRXOG EH GULYHQ E\ WKH FRPPXQLW\ VWUXFWXUHV DVVLVWHG E\ VXSSRUW RUJDQLVDWLRQV
5HSRUWHG &DVH $JERJEORVKLH 2OG )DGDPD &RPPXQLW\ $FFUD *KDQD 7KH SODQQHG HYLFWLRQ RI $JERJEORVKLH 2OG )DGDPD LQ $FFUD *KDQD LV RQH RI IRXU VHOHFWHG DV NH\ IRFXV FDVHV IRU PRUH LQWHQVLYH $*)( DFWLYLW\ LQFOXGLQJ PLVVLRQV WR EH FRQGXFWHG RQ WKH LQYLWDWLRQ RI WKH UHOHYDQW JRYHUQPHQWV 7KUHH VXFK $*)( PLVVLRQV KDYH DOUHDG\ WDNHQ SODFH DQG DUH UHSRUWHG RQ LQ WKH QH[W FKDSWHU 7KH IRXUWK PLVVLRQ WR $FFUD LV SODQQHG IRU 0D\ -XQH 7KLV FDVH LV GLVFXVVHG EHORZ
,QWURGXFWLRQ 7KH VHWWOHPHQW RI $JERJEORVKLH 2OG )DGDPD ZKLFK FRQVLVWV RI DSSUR[LPDWHO\ IDPLOLHV RU SHRSOH LV VLWXDWHG RQ WKH OHIW EDQN RI WKH 2GDZ 5LYHU LQ WKH XSSHU UHDFKHV RI WKH .RUOH /DJRRQ LQ $FFUD *KDQD 7KH VHWWOHPHQW LV DOVR VRPHWLPHV GHURJDWLYHO\ FDOOHG µ6RGRP DQG *RPRUUDK¶ SDUWLFXODUO\ E\ LWV GHWUDFWRUV ZKR ZDQW WKH DUHD FOHDUHG RI SHRSOH 7KH $FFUD 0HWURSROLWDQ $VVHPEO\ DQG WKH *RYHUQPHQW RI *KDQD VSHFL¿FDOO\ WKH 0LQLVWU\ RI 7RXULVP DQG 0RGHUQLVDWLRQ RI WKH &DSLWDO &LW\ VHHNV WR HYLFW WKH FRPPXQLW\ RI $JERJEORVKLH 2OG )DGDPD
5HDVRQV DQG PRWLYDWLRQ JLYHQ E\ WKH 6WDWH IRU WKH HYLFWLRQ ,Q 0D\ WKH FRPPXQLW\ ZDV VHUYHG ZLWK DQ HYLFWLRQ QRWLFH &RPPXQLW\ UHVLGHQWV UHVSRQGHG ZLWK DQ DSSHDO WR WKH +LJK &RXUW IRU DQ LQMXQFWLRQ WR UHVWUDLQ WKH $FFUD 0HWURSROLWDQ $VVHPEO\ $0$ IURP IROORZLQJ WKURXJK RQ WKH HYLFWLRQ 7KH FRXUW FDVH WKDW IROORZHG FHQWUHG RQ WKH LVVXH RI LOOHJDO RFFXSDWLRQ RI WKH ODQG $Q DGGLWLRQDO UHDVRQ IRU WKH HYLFWLRQ H[SUHVVHG E\ WKH *RYHUQPHQW LV WKH VHWWOHPHQW¶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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
SUHVHQFH RI $JERJEORVKLH KDV VLJQL¿FDQW QHJDWLYH FRVW LPSOLFDWLRQV IRU WKH *RYHUQPHQW LQ WKH IRUP RI ORVW LQWHUHVW RQ WKH ORDQ DV D UHVXOW RI GHOD\HG LPSOHPHQWDWLRQ RI WKH SURMHFW ,Q DGGLWLRQ ERWK WKH *RYHUQPHQW DQG WKH $0$ DUJXH WKDW WKH VHWWOHPHQW RI $JERJEORVKLH SUHVHQWV D VHULRXV KHDOWK ULVN IRU WKH UHVLGHQWV
%DFNJURXQG DQG KLVWRU\ RI WKH FRPPXQLW\ 7KH JHQHUDO SHUFHSWLRQ RI $JERJEORVKLH E\ WKRVH JRYHUQPHQWDO RI¿FLDOV ZLWK ZKRP &2+5( UHSUHVHQWDWLYHV KDYH KHOG GLVFXVVLRQV LV WKDW WKH DUHD LV SRSXODWHG E\ *KDQDLDQV IURP WKH QRUWK RI WKH FRXQWU\ ZKR ZHUH GLVSODFHG E\ WKH ¿JKWLQJ LQ WKH HDUO\ V 7KHUH LV D VXJJHVWLRQ WKDW JLYHQ WKDW WKH FRQÃ&#x20AC;LFW LV RYHU WKH FRPPXQLW\ FRXOG EH FRQYLQFHG DQG DVVLVWHG WR µJR EDFN¶ +RZHYHU D VWXG\ FRQGXFWHG E\ &2+5( VKRZV WKDW WKH UHDOLW\ UHÃ&#x20AC;HFWV D IDU PRUH FRPSOH[ VHWWOHPHQW SDWWHUQ DQG LV LQ HIIHFW D PLFURFRVP RI ZKDW LV KDSSHQLQJ DPRQJ $FFUD¶V SRRU LQ JHQHUDO &2+5( IRXQG WKDW WKHUH DUH LQ IDFW DW OHDVW IRXU GLIIHUHQW HFRQRPLF DQG VRFLDO GULYLQJ IRUFHV EHKLQG WKH HVWDEOLVKPHQW DQG JURZWK RI $JERJEORVKLH 7KHVH DUH x 6SLOO RYHU RI SRSXODWLRQ DVVRFLDWHG ZLWK WKH VL]H DQG JURZWK RI WKH DGMDFHQW $JERJEORVKLH PDUNHW x 0LJUDWLRQ IURP WKH QRUWK DV DQ RXWFRPH RI WULEDO FRQÃ&#x20AC;LFW x 6RFLDO GRZQZDUG PRYHPHQW LQ DFFRPPRGDWLRQ E\ WKRVH IRUFHG RXW RI PRUH H[SHQVLYH DFFRPPRGDWLRQ LQ $FFUD 7KLV LV GXH WR WKH ¿QDQFLDO LPSDFW RI WKH 6WUXFWXUDO $GMXVWPHQW 3URJUDPPH WKDW ZDV LQLWLDWHG IURP WKH HDUO\ V x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
.H\ HYHQWV x x x x
(DUO\ V $JERJEORVKLH VHWWOHPHQW IRUPHG (DUO\ V WR SUHVHQW &RPPXQLW\ JUHZ WR DSSUR[LPDWHO\ SHRSOH 0D\ 5HVLGHQWV VHUYHG ZLWK DQ HYLFWLRQ QRWLFH E\ WKH $0$ :LWK WKH DVVLVWDQFH RI WKH &HQWUH IRU 3XEOLF ,QWHUHVW /DZ VXSSRUWHG E\ WKH &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( WKH FRPPXQLW\ UHVLGHQWV UHVSRQGHG ZLWK DQ DSSHDO WR WKH +LJK &RXUW IRU DQ LQMXQFWLRQ WR UHVWUDLQ WKH $0$ IURP IROORZLQJ WKURXJK RQ WKH HYLFWLRQ x /HWWHUV RI SURWHVW ZHUH DOVR ZULWWHQ WR WKH *RYHUQPHQW RI *KDQD DQG WKH $0$ RXWOLQLQJ WKH LQWHUQDWLRQDO OHJDO REOLJDWLRQV WKDW ZRXOG EH YLRODWHG LI WKH IRUFHG HYLFWLRQ RI WKH $JERJEORVKLH FRPPXQLW\ ZHUH WR RFFXU 7KH IROORZLQJ WUDQVJUHVVLRQV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
x x
x
x x
x
x x
x
x
ZHUH KLJKOLJKWHG DOO IHDVLEOH DOWHUQDWLYHV WR WKH SODQQHG HYLFWLRQ KDG QRW EHHQ FRQVLGHUHG WKH 0D\ QRWLFH KDG SURYLGHG WRR OLWWOH DGYDQFH ZDUQLQJ UHVLGHQWV RI WKH DIIHFWHG FRPPXQLW\ KDG QRW EHHQ FRQVXOWHG WKURXJKRXW WKH SURFHVV DQG DOWHUQDWLYH KRXVLQJ RU DGHTXDWH UHVHWWOHPHQW VLWHV KDG QRW EHHQ SURYLGHG -XO\ 7KH $FFUD +LJK &RXUW UHMHFWHG WKH FRPPXQLW\¶V UHTXHVW DQG DXWKRULVHG WKH $0$ WR HYLFW $XJXVW RQZDUGV 7KHUH ZDV DQ LQLWLDO LQWHQWLRQ WR DSSHDO EXW WKLV ZDV QRW IROORZHG WKURXJK E\ WKH FRPPXQLW\ UHSUHVHQWDWLYHV 7KH SHULRG ZLWKLQ ZKLFK DQ DSSHDO KDG WR EH ORGJHG KDV FRQVHTXHQWO\ ODSVHG 'HOD\V LQ LPSOHPHQWLQJ WKH HYLFWLRQV ZHUH PDLQO\ DWWULEXWHG WR D ODFN RI SROLWLFDO ZLOO RQ WKH SDUW RI WKH *RYHUQPHQW RI *KDQD WR LPSOHPHQW DQ XQSRSXODU DQG GLI¿FXOW SURFHVV 3HRSOH¶V 'LDORJXH VXSSRUWHG E\ 6', DVVLVWHG FRPPXQLW\ JURXSV WR RUJDQLVH DURXQG VDYLQJV VFKHPHV 2FWREHU ± )HEUXDU\ $IWHU D QXPEHU RI ¿HOG YLVLWV WR $JERJEORVKLH LQ WKH ¿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¿FLDOV IURP 81 +$%,7$7 JRYHUQPHQW GHSDUWPHQWV FRPPXQLW\ OHDGHUV RI $JERJEORVKLH DQG PHPEHUV RI WKH SUHVV 6HSWHPEHU )DFWV RI WKH FDVH ZHUH KLJKOLJKWHG DW WKH $*)( SUHVHQWDWLRQ DW WKH :RUOG 8UEDQ )RUXP LQ %DUFHORQD 7KH 0D\RU RI $FFUD ZKR ZDV SUHVHQW DW WKH SUHVHQWDWLRQ UHVSRQGHG DW WKH SUHVHQWDWLRQ DQG VXEVHTXHQWO\ KDG GLVFXVVLRQV ZLWK &2+5( RQ ZD\V RI UHVROYLQJ WKH GHDGORFN 2Q )HEUXDU\ WKH *RYHUQPHQW RI *KDQD ZHOFRPHG WKH SURSRVDO RI DQ $*)( PLVVLRQ WR $FFUD WR LQYHVWLJDWH WKH VLWXDWLRQ ³VLQFH LW LV RXU EHOLHI WKDW ZH ZLOO EH DEOH WR KDYH D EUHDNWKURXJK LQ WKH 2OG )DGDPD $JERJEORVKLH FDVH WKURXJK GLDORJXH´ 6HH $QQH[ IRU D FRS\ RI WKLV OHWWHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
/HYHOV RI RUJDQLVDWLRQ RI WKH DIIHFWHG FRPPXQLW\ ,Q JHQHUDO WHUPV WKH ¿HOG YLVLWV FRQGXFWHG KDYH UHYHDOHG WKDW WKLV FRPPXQLW\ LV ZHOO RUJDQLVHG 6WULNLQJ OHYHOV RI LQLWLDWLYH LV HYLGHQW LQ WKH PDQDJHPHQW RI LVVXHV DIIHFWLQJ WKH ZKROH FRPPXQLW\ 7KHVH LQFOXGH IRU H[DPSOH WKH DUUDQJHPHQW RI ZDWHU SRLQWV ZDVK KRXVHV WKH GLJJLQJ RI GUDLQV DQG ¿UH ¿JKWLQJ $W WKH HFRQRPLF OHYHO WKH JHQHUDO DFWLYLW\ LV HYHQ PRUH VWULNLQJ DQG LQGLFDWLYH RI D FRPSOH[ GLYHUVL¿HG HFRQRPLF VHFWRU
3KRWR &2+5(
&RPPXQLW\ PHPEHUV FRQVWUXFWLQJ GUDLQDJH WUHQFK $JERJEORVKLH $FFUD *KDQD
,QLWLDO ZRUN DURXQG UHVLVWLQJ WKH HYLFWLRQ ZDV FRQGXFWHG E\ LQWHUQDO FRPPXQLW\ JURXSV ZLWK OHJDO DVVLVWDQFH DQG VRPH FRPPXQLW\ RUJDQLVLQJ ZRUN E\ WKH &HQWUH IRU 3XEOLF ,QWHUHVW /DZ &(3,/ &(3,/ ZDV DVVLVWHG E\ &2+5( LQ FHUWDLQ DVSHFWV RI WKLV ZRUN 0RUH UHFHQWO\ ORFDO JURXSV KDYH ZLWK WKH VXSSRUW RI RUJDQLVDWLRQV VXFK DV 3HRSOH¶V 'LDORJXH 6KDFN 'ZHOOHUV¶ ,QWHUQDWLRQDO DQG &2+5( PRYHG EH\RQG PHUH UHVLVWDQFH WR WKH HYLFWLRQ WR WU\LQJ WR RSHQ XS VSDFHV IRU WKH UHVLGHQWV WR QHJRWLDWH GLUHFWO\ ZLWK WKH *RYHUQPHQW
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¶V 'LDORJXH VXSSRUWHG E\ 6KDFN 'ZHOOHUV¶ ,QWHUQDWLRQDO KDYH EHHQ ZRUNLQJ GLUHFWO\ ZLWK FRPPXQLW\ JURXSV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
&RQVXOWDWLRQV KHOG DQG DOWHUQDWLYH RSWLRQV SURSRVHG E\ WKH DXWKRULWLHV 7KH ULJKW RI WKH FRPPXQLW\ WR UHVLGH LQ WKH DUHD LV GHQLHG RXWULJKW E\ WKH DXWKRULWLHV DQG DOVR E\ WUDGLWLRQDO DXWKRULWLHV ZKR FODLP WR EH WKH RULJLQDO RZQHUV RI WKH ODQG ,Q DGGLWLRQ QR FOHDU RIIHUV RI FRPSHQVDWLRQ RU DQ\ DOWHUQDWLYHV KDYH EHHQ PDGH +RZHYHU XQFRQ¿UPHG UHSRUWV KDYH EHHQ UHFHLYHG RI FHUWDLQ JURXSV ZLWKLQ WKH FRPPXQLW\ EHLQJ DSSURDFKHG ZLWK RIIHUV RI DVVLVWDQFH VKRXOG WKH\ DJUHH WR UHORFDWH
$FWLRQV WDNHQ WKXV IDU E\ WKH FRPPXQLW\ DQG VXSSRUWLQJ DJHQFLHV WR UHVLVW WKH HYLFWLRQ DQG WR GHYHORS FUHDWLYH DOWHUQDWLYH VROXWLRQV 7KHUH KDV EHHQ FRQFHUWHG FRPPXQLW\ DFWLRQ WR UHVLVW WKH HYLFWLRQ ,Q VXSSRUW RI WKLV DQ LQGHSHQGHQW LQYHVWLJDWLRQ ZDV FRPPLVVLRQHG E\ &2+5( LQ FROODERUDWLRQ ZLWK FRPPXQLW\ OHDGHUVKLS WR LQYHVWLJDWH WKH JURXQGV IRU WKH HYLFWLRQ DQG WR HVWDEOLVK ZKHWKHU LQ VLWX XSJUDGLQJ LV IHDVLEOH 7KLV LQYHVWLJDWLRQ FRQFOXGHG WKDW x $OO WKH FRQFHUQV RI WKH *RYHUQPHQW DERXW WKH VHWWOHPHQW FRXOG LQ IDFW EH UHVROYHG VDWLVIDFWRULO\ DQG VWLOO DOORZ WKH FRPPXQLW\ RI $JERJEORVKLH WR UHPDLQ ZKHUH WKH\ OLYH x :LWK UHVSHFW WR WKH WHQXUH LVVXH $JERJEORVKLH FRXOG EH XVHG WR GHYHORS D QHZ SROLF\ RI LQIRUPDO ODQG PDQDJHPHQW LQ $FFUD WKDW ZRXOG PDNH D PDMRU FRQWULEXWLRQ WR VROYLQJ LWV ODQG FULVLV 7KLV SROLF\ ZRXOG QHFHVVDULO\ LQYROYH VRPH IRUP RI SD\PHQW IRU WKH ODQG DQG UHJXODULVDWLRQ RI WKH WHQXUH VLWXDWLRQ x 7KH UHODWLRQVKLS EHWZHHQ WKH $JERJEORVKLH VHWWOHPHQW DQG WKH .RUOH /DJRRQ LV VHHQ WR EH FRPSDWLEOH $JERJEORVKLH FRXOG UHPDLQ ZLWKRXW WKUHDWHQLQJ WKH IXWXUH YLDELOLW\ RI WKH ODJRRQ UHVWRUDWLRQ SURMHFW )XUWKHUPRUH WKH SURMHFW¶V UHSXWDWLRQ ZRXOG EH HQKDQFHG LQWHUQDWLRQDOO\ LI LW FRXOG VKRZ WKDW LW ZDV DEOH WR LQWHJUDWH WKH XUEDQ SRRU LQWR DQ HQYLURQPHQWDO UHVWRUDWLRQ SURMHFW x ,W LV IHDVLEOH WR XSJUDGH $JERJEORVKLH LQ VLWX 7KH LQIRUPDWLRQ JDWKHUHG GXULQJ WKH FRPPLVVLRQHG VWXG\ LV VXI¿FLHQWO\ FRPSHOOLQJ WR VWLPXODWH LQWHQVLYH GLVFXVVLRQ DQG KRSHIXOO\ D UHFRQVLGHUDWLRQ RI WKH SUHVHQW SROLF\ SRVLWLRQV RI WKH *RYHUQPHQW &2+5( KDV SURSRVHG WKDW LQVWLWXWLRQV VXFK DV WKH *KDQD RI¿FH RI WKH 81'3 81 +$%,7$7 $*)( 1*2V DQG FRPPXQLW\ EDVHG RUJDQLVDWLRQV VKRXOG XUJHQWO\ PHHW WR H[SORUH WKH DERYH LVVXHV WR IRUPXODWH FRQVWUXFWLYH SURSRVDOV LQ WKLV UHJDUG DQG WR FRQYHQH GLVFXVVLRQV ZLWK WKH *RYHUQPHQW RQ WKRVH SURSRVDOV 3HRSOH¶V 'LDORJXH KDV EHHQ ZRUNLQJ FORVHO\ ZLWK FRPPXQLW\ JURXSV WR SUHSDUH IRU GLDORJXH ZLWK WKH *RYHUQPHQW RQ WKH ZD\ IRUZDUG $FFRUGLQJ WR )DURXN %UDLPDK RI 3HRSOH¶V 'LDORJXH LQ $FFUD D NH\ REMHFWLYH RI WKLV ZRUN LV ³WR PDNH VXUH WKDW ZH DYRLG WKH VLWXDWLRQ RI SHRSOH EHLQJ HYLFWHG ZLWKRXW DOWHUQDWLYHV´ 7KH PHWKRGRORJ\ XVHG LV WR PRELOLVH WKH HQHUJLHV DQG BBBBBBBBBBBB
3HUVRQDO FRPPXQLFDWLRQ )DURXN %UDLPDK $FWLQJ ([HFXWLYH 'LUHFWRU 3HRSOH¶V 'LDORJXH $FFUD *KDQD 1RYHPEHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
UHVRXUFHV RI WKH UHVLGHQWV WKURXJK WKH FUHDWLRQ RI MRLQW VDYLQJV VFKHPHV :HHNO\ PHHWLQJV DUH KHOG DW ZKLFK D YDULHW\ RI LVVXHV DUH GLVFXVVHG LQFOXGLQJ WKH WKUHDWHQHG HYLFWLRQ &RQ¿GHQFH DQG XQLW\ LV EXLOW XS WKURXJK SDUWLFLSDWLRQ DQG RQ WKH EDVLV RI VKDUHG EHOLHIV DQG SULQFLSOHV DQG MRLQWO\ KHOG ¿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
3URSRVHG VWUDWHJLHV IRU IXWXUH DFWLRQ 6LJQL¿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¿FDQW FRQWULEXWLRQ WR WKH UHVROXWLRQ RI WKLV FDVH 7KURXJK 81 +$%,7$7 VWDII LQ $FFUD FRQWDFW ZDV VXEVHTXHQWO\ PDGH ZLWK WKH 'HSDUWPHQW RI /RFDO *RYHUQPHQW DQG 5XUDO 'HYHORSPHQW ZKR DJUHHG WR SDUWLFLSDWH LQ DQ $*)( PLVVLRQ WR $FFUD 7KH REMHFWLYHV RI WKLV PLVVLRQ ZRXOG EH WR x x x x x
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x 'HYHORS D ORFDO SODQ RI DFWLRQ IRU UHVROYLQJ WKH SUREOHP x (VWDEOLVK PHFKDQLVPV IRU LPSOHPHQWLQJ DQG PRQLWRULQJ WKH SODQ RI DFWLRQ 7KH *RYHUQPHQW RI *KDQD DJUHHG WR WKH PLVVLRQ LQGLFDWLQJ WKDW ³>W@KH 0LQLVWU\ VHHV WKLV DV D VWHS LQ WKH ULJKW GLUHFWLRQ VLQFH LW LV RXU EHOLHI WKDW ZH ZLOO EH DEOH WR KDYH D EUHDNWKURXJK LQ WKH
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
2OG )DGDPD $JERJEORVKLH FDVH WKURXJK GLDORJXH 7KH 0LQLVWU\ ZLOO WKHUHIRUH ZHOFRPH \RXU YLVLW WR *KDQD WR IDFLOLWDWH WKH GLDORJXH ZLWK DOO VWDNHKROGHUV´ /HWWHU DWWDFKHG $QQH[
:KLOH WKH LQLWLDO SODQ ZDV IRU WKH PLVVLRQ WR EH XQGHUWDNHQ SULRU WR WKH $SULO PHHWLQJ RI WKH 81 +$%,7$7 *RYHUQLQJ &RXQFLO PXWXDOO\ VXLWDEOH GDWHV FRXOG QRW EH VHW DQG WKHUHIRUH WKH PLVVLRQ KDG WR EH UHVFKHGXOHG DQG ZLOO QRZ WDNH SODFH LQ 0D\ -XQH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$*)( 0,66,21 5(32576 0LVVLRQ WR WKH 'RPLQLFDQ 5HSXEOLF ± 0DUFK ,QWURGXFWLRQ 7KH $*)( 0LVVLRQ YLVLWHG WKH 'RPLQLFDQ 5HSXEOLF EHWZHHQ DQG 0DUFK RQ WKH LQYLWDWLRQ RI WKH 0XQLFLSDOLWLHV RI %RFD &KLFD DQG &DOHWD 6DQWR 'RPLQJR DV ZHOO DV IURP WKH RUJDQLVDWLRQ µ(VSDFLR GH OD 7LHUUD¶ ZKLFK FRRUGLQDWHV PRUH WKDQ VL[W\ FLYLO VRFLHW\ RUJDQLVDWLRQV &RS\ RI LQYLWDWLRQ DGGHG DV $QQH[ 7KH $*)( 0LVVLRQ WR WKH 'RPLQLFDQ 5HSXEOLF FDUULHG RXW LWV ZRUN LQ DQ H[FHSWLRQDOO\ FRPSOH[ VLWXDWLRQ \HW SHUVLVWHG LQ LWV DWWHPSWV WR RSHQ XS QHZ ZD\V DQG QHZ FRPPLWPHQWV EHWZHHQ WKH GLYHUVH VWDNHKROGHUV LQYROYHG LQ RUGHU WR ¿QG HIIHFWLYH VROXWLRQV WR VWRS WKH IRUFHG HYLFWLRQV LQ WKH FRXQWU\
&RQWH[W 7KH 'RPLQLFDQ 5HSXEOLF H[WHQGV RYHU WZR WKLUGV RI WKH LVODQG RI 6DQWR 'RPLQJR ZLWK DQ DUHD LQ H[WHQW RI NP D SRSXODWLRQ RI LQKDELWDQWV D FRDVWOLQH RI NLORPHWUHV DQG D NLORPHWUH ERUGHU ZLWK +DLWL ,W KDV SURYLQFHV D )HGHUDO 'LVWULFW DQG PXQLFLSDOLWLHV 7KH PDMRULW\ RI WKH SRSXODWLRQ UHVLGH LQ FLWLHV ZLWK WKH UHPDLQGHU RI WKH SRSXODWLRQ OLYLQJ LQ WKH 1DWLRQDO 'LVWULFW DQG 6DQWR 'RPLQJR 3URYLQFH 7KHUH LV DQ DQQXDO SRSXODWLRQ JURZWK UDWH RI $OWKRXJK RI WKH SRSXODWLRQ FRQWUROV RI WKH LQFRPH DW OHDVW RI WKH UHPDLQLQJ SRSXODWLRQ OLYH EHORZ WKH SRYHUW\ OLQH 7KH FRXQWU\ FRPPLWV IHZHU UHVRXUFHV WR HGXFDWLRQ WKDQ WKH FRXQWU\ DYHUDJH LQ /DWLQ $PHULFD DQG KDV DQ LOOLWHUDF\ UDWH RI 7KLUW\ ¿YH SHUFHQW RI WKH SRSXODWLRQ KDYH LQDGHTXDWH DFFHVV WR GULQNLQJ ZDWHU KDYH QR DFFHVV WR VDQLWDWLRQ DQG WKH LQIDQW PRUWDOLW\ UDWH LV KLJKHU WKDQ WKH UHJLRQDO DYHUDJH 6HYHQW\ ¿YH SHUFHQW RI KRXVLQJ LV VHOI FRQVWUXFWHG ZKLOVW RI WKH SRSXODWLRQ KDYH QR GHHGV IRU WKH ODQG RQ ZKLFK WKH\ OLYH 7KH ODFN RI GHHGV DQG LQVHFXULW\ RI WHQXUH DUH WKH PDLQ FDXVHV RI IRUFHG HYLFWLRQV
*HRJUDSKLFDO ORFDWLRQ RI HYLFWLRQV )RUFHG HYLFWLRQV DUH D FRPPRQ SUDFWLFH DOO RYHU WKH 'RPLQLFDQ 5HSXEOLF EXW DUH HYHQ PRUH SUHYDOHQW LQ WKH )HGHUDO 'LVWULFW DQG LQ 6DQWR 'RPLQJR 3URYLQFH 7KH SURYLQFHV RI 6DQ BBBBBBBBBBBB
7KLV LV D WUDQVODWHG H[WUDFW IURP WKH UHSRUW RI WKH $*)( PLVVLRQ WHDP WKDW YLVLWHG WKH 'RPLQLFDQ 5HSXEOLF IURP ± 0DUFK 7KH WHDP ZDV FRPSRVHG RI <YHV &DEDQQHV &DUORV (VFDODQWH DQG 3HGUR )UDQFR ZKR FROOHFWLYHO\ SUHSDUHG WKH SUHVHQW UHSRUW
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
)UDQFLVFR GH 0DFRUtV /D 9HJD 6DPDQi 3XHUWR 3ODWD /D $OWDJUDFLD 6DQ 3HGUR GH 0DFRUtV $]XD %DUDKRQD DOVR VXIIHU IRUFHG HYLFWLRQV ,Q WKH )HGHUDO 'LVWULFW PRUH WKDQ LQKDELWDQWV IURP /D =XU]D &DSRWLOOR 6LPyQ %ROLYDU GH $EULO *XDOH\ /RV *XDQGXOHV \ /D &LpQHJD QHLJKERXUKRRGV DUH FXUUHQWO\ XQGHU WKH WKUHDW RI IRUFHG HYLFWLRQ 0RUH WKDQ SHRSOH ZRXOG EH GLVSODFHG WR HQDEOH WKH RSHQLQJ RI WKH $YHQLGD GHO 5t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tD LQ %RFD &KLFD 0XQLFLSDOLW\ )RUFHG HYLFWLRQV DOVR WDNH SODFH LQ 6DQWR 'RPLQJR 1RUWH 0XQLFLSDOLW\ DQG LQ 6DQWR 'RPLQJR 2HVWH 0XQLFLSDOLW\
5HODWLRQVKLS EHWZHHQ µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQR¶ DQG $*)( 7KH VWUXFWXUH µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU SRU OD 'HIHQVD GHO 7HUULWRULR¶ (VSDFLR GH OD 7LHUUD FRRUGLQDWHV PRUH WKDQ VL[W\ XUEDQ FLYLO VRFLHW\ RUJDQL]DWLRQV 'XULQJ WKH SDVW ¿YH \HDUV WKHVH RUJDQL]DWLRQV KDYH UHVLVWHG IRUFHG HYLFWLRQV LQ DGGLWLRQ WR PDNLQJ D FRQFUHWH SURSRVDO WR RYHUFRPH WKH SUDFWLFH RI IRUFHG HYLFWLRQV ± VXFK DV WKH %LOO RQ 8UEDQ /DQG 7HQDQF\ µ$QWHSUR\HFWR GH /H\ GHO 6XHOR 8UEDQR¶ ,Q (VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU SRU OD 'HIHQVD GHO 7HUULWRULR SUHVHQWHG D UHSRUW RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV DQG LQ GHOLYHUHG D FRPSOHPHQWDU\ UHSRUW RQ )RUFHG (YLFWLRQ &DVHV WR $*)( 7KHVH UHSRUWV ZHUH DQDO\VHG DQG GLVFXVVHG GXULQJ WKH :8) LQ 6HSWHPEHU ,Q )HEUXDU\ DQ XSGDWHG UHSRUW RQ )RUFHG (YLFWLRQV ZDV DOVR SUHVHQWHG
&RPSRVLWLRQ PRWLYDWLRQ DQG DFWLYLWLHV RI WKH 0LVVLRQ WR WKH 'RPLQLFDQ 5HSXEOLF 0LVVLRQ 7HDP 7KH $*)( 0LVVLRQ ZDV FRPSRVHG RI <YHV &DEDQQHV $*)( &RRUGLQDWRU &DUORV (VFDODQWH IURP &DPSDxD SRU OD 6HJXULGDG GH OD 7HQHQFLD 3HU~ DQG 3HGUR )UDQFR IURP WKH 'RPLQLFDQ 5HSXEOLF ZKR KDV LQWHUQDWLRQDO H[SHULHQFH LQ WKH GHIHQFH RI WKH (6&5 DQG D UHODWLRQVKLS ZLWK WKH 81 +$%,7$7 &DPSDLJQV 2EMHFWLYHV 7KH IROORZLQJ ZHUH GH¿QHG DV WKH 0LVVLRQ¶V 2EMHFWLYHV x 7R HYDOXDWH WKH DFWXDO VLWXDWLRQ LQ WKH ¿HOG RI (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV DQG VSHFL¿FDOO\ +RXVLQJ 5LJKWV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
x 7R VXEPLW LWV H[SHULHQFH DQG NQRZOHGJH WR WKH &HQWUDO *RYHUQPHQW 0XQLFLSDOLWLHV WKH &RQJUHVV WKH -XGLFLDO 6\VWHP DQG WKH 1*2V LQ WKH HQIRUFHPHQW RI ODZV DQG LQWHUQDWLRQDO DJUHHPHQWV RQ KXPDQ ULJKWV SHUWDLQLQJ WR KRXVLQJ ULJKWV DQG SURWHFWLRQ DJDLQVW IRUFHG HYLFWLRQV x 7R VXJJHVW WKH H[FKDQJH RI H[SHULHQFHV DQG JRRG SUDFWLFHV IURP RWKHU FRXQWULHV WR SUHYHQW DQG DYRLG IRUFHG HYLFWLRQV x 7R SURSRVH DOWHUQDWLYHV DW WKH ORFDO OHYHO WR VWRS WKH IRUFHG HYLFWLRQV x 7R DJUHH RQ D WLPHWDEOH WR PRQLWRU DQG VWXG\ WKH SURJUHVV LQ DGGUHVVLQJ IRUFHG HYLFWLRQV $FWLYLWLHV 9LVLWV ZHUH FRQGXFWHG WR WKH IROORZLQJ QHLJKERXUKRRGV WR DVVHVV WKH VLWXDWLRQ DQG H[SHULHQFHV RI IRUFHG HYLFWLRQV LQ WKHVH DUHDV x %RFD &KLFD 6DQWD /XFtD /D &DOHWD 9DOLHQWH x 6DQWR 'RPLQJR (VWH ,VDEHOLWD $Y (VSDxD &DOOH 3DUDtVR /RV +R\RV GH ORV WUHV RMRV 3DUTXH GHO (VWH %ULVDV GHO (VWH (O 7DPDULQGR \ 9LOOD (VIXHU]R x 6DQWR 'RPLQJR 2HVWH *XDULFDGR \ 6DEDQD 3HUGLGD %DUULR /D ,VOLWD \ 3UR\HFWR ,19, /D 9LUJHQ
x 'LVWULWR 1DFLRQDO /D &LHQDJD *XDOH\ \ /RV *XDQGXOHV 2WKHU QHLJKERXUKRRGV SUHVHQWHG WKHLU H[SHULHQFHV DQG WHVWLPRQLHV GXULQJ WKH 3XEOLF 6HVVLRQ ZKLFK WKH $*)( 0LVVLRQ KHOG RQ 6DWXUGD\ 0DUFK $ GRVVLHU FRQWDLQLQJ WHVWLPRQLHV SUHVV FOLSSLQJV 'RPLQLFDQ OHJDO GRFXPHQWDWLRQ ZDV DOVR GHOLYHUHG WR WKH WHDP E\ (VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU DQG RWKHU RUJDQL]DWLRQV
3KRWR $QWRQLR 3HUH]
$ UHVLGHQW KROGLQJ KHU WLWOH GHHG DGGUHVVHV WKH $*)( 0LVVLRQ WHDP GXULQJ D FRQVXOWDWLRQ LQ WKH 'RPLQLFDQ 5HSXEOLF
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
/RFDWLRQ GHVFULSWLRQ RI SUREOHPV DQG FXUUHQW VLWXDWLRQ LQ WKH QHLJKERXUKRRGV YLVLWHG %DUULR 9DOLHQWH 3ORWV 1R % % DQG DPRQJ RWKHUV LQ 'LVWULFW 1R VLWXDWHG NLORPHWUHV DORQJ $XWRSLVWD GH ODV $PpULFDV $PHULFDV +LJKZD\ LQ %RFD &KLFD 0XQLFLSDOLW\ 6DQWR 'RPLQJR 3URYLQFH 7KLV QHLJKERXUKRRG KDV VXIIHUHG IRUFHG HYLFWLRQV VLQFH $FFRUGLQJ WR 6DQWRV &DUYDMDO 0RWD 3UHVLGHQW RI WKH &RPPXQLW\ &RXQFLO RI 9DOLHQWH &2'(&29 D FHQWUDO RUJDQLVDWLRQ WKDW ¿JKWV DJDLQVW IRUFHG HYLFWLRQV DQG D PHPEHU RI WKH (VSDFLR 8UEDQR 3RSXODU PRUH WKDQ WHQ WKRXVDQG IDPLOLHV IDFH WKH WKUHDW RI IRUFHG HYLFWLRQV DPRQJ WKHVH DUH LQFOXGHG WKUHH WKRXVDQG IDPLOLHV OLYLQJ RQ 3ORW % 0U 3HGUR *RQ]iOH] WRJHWKHU ZLWK RWKHU ¿YH IDPLOLHV DQG 0U %DXWLVWD $QJHOHV ZKRVH KRXVH ZDV GHVWUR\HG LQ WZR LQFLGHQWV E\ D SULYDWH FRPSDQ\ DOVR IDFH WKH WKUHDW RI IRUFHG HYLFWLRQ /D &DOHWD 3ORWV % $ LQ WKH %RFD &KLFD 0XQLFLSDOLW\ 7KLV QHLJKERXUKRRG ZDV RULJLQDOO\ VHWWOHG RQ WKH FXUUHQW VLWH RI WKH DLUSRUW DQG ZDV GLVSODFHG LQ RUGHU WR DOORZ WKH FRQVWUXFWLRQ RI WKH DLUSRUW DQG WKH $XWRSLVWD GH /DV $PHULFDV /DV $PHULFDV¶ KLJKZD\ 7KH QHLJKERXUKRRG DV ZHOO DV RWKHU SORWV LQ &DPSR /LQGR KDV EHHQ VHYHUHO\ DIIHFWHG E\ IRUFHG HYLFWLRQV DQG UHVLGHQWV FRQWLQXRXVO\ UHFHLYH FLWDWLRQV RI HYLFWLRQ 7KLV LV GHVSLWH WKH IDFW WKDW WKH RULJLQDO GHHGV EHORQJHG WR WKH LQKDELWDQWV DV ZDV SRLQWHG RXW E\ 6yFUDWHV 3HJXHUR WKH &RRUGLQDWRU RI )5(1352&$ DQG ORFDO &RRUGLQDWRU RI WKH (VSDFLR 8UEDQR 3RSXODU &RPPLWWHH 6DQWD /XFLD DQG %RFD &KLFD QHLJKERXUKRRGV ,Q WKHVH QHLJKERXUKRRGV VLWXDWHG LQ WKH %RFD &KLFD 0XQLFLSDOLW\ VRXWK RI /DV $PHULFDV +LJKZD\ DQG QRUWK RI /DV $PHULFDV ,QWHUQDWLRQDO $LUSRUW SORWV DQG DUH FXUUHQWO\ IDFLQJ WKH WKUHDW RI IRUFHG HYLFWLRQV 7KHUH DUH IDPLOLHV ZKR DUH LQ GDQJHU RI EHLQJ HYLFWHG $PRQJ WKH FODLPDQWV WKH 6DQWD /XFLD 1HLJKERXUV¶ &RPPLWWHH PHQWLRQHG 0U -XOLR 3XHOOR 0U 5DPyQ (PLOLR 6LPy 6DQWRV DQG 0U 0LJXHO &ODQ ,W KDV EHHQ DQQRXQFHG LQ %RFD &KLFD WKDW WKH LQKDELWDQWV RI SORW DUH LQ GDQJHU RI EHLQJ HYLFWHG E\ 0U +XJR $ULDV )DELDQ ZKR FODLPV WDUHDV RI WKH ODQG WDUHD P 7KH VDPH 0U )DELDQ VROG WKLV ODQG LQ ZKHQ KH ZDV D PHPEHU RI WKH $FFRXQWLQJ &KDPEHU RI WKH 5HSXEOLF WR &RPSDxtD ,QPRELOLDULD ,QYHUVLRQHV 'RPLQLFR (VSDxRODV 6$ WKH VDPH FRPSDQ\ WKDW KH QRZ FODLPV WR UHSUHVHQW +H VROG WKH ODQG HYHQ WKRXJK LW ZDV RFFXSLHG E\ PRUH WKDQ WZR WKRXVDQG IDPLOLHV DQG WKHVH IDPLOLHV DUH WRGD\ LQ GDQJHU RI HYLFWLRQ 7KH IDPLOLHV RI 0DQXHO %HUQDO 'RPLQJR 3pUH] -XOLR &pVDU 'D\VL 5LMR -RVp GH ORV 6DQWRV DQG )HOL[ -DYLHU DPRQJVW RWKHUV DUH WKUHDWHQHG ZLWK HYLFWLRQ LQ WKLV PDWWHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
%ULVDV 'HO (VWH 7KLV QHLJKERXUKRRG LV VLWXDWHG LQ 6DQWR 'RPLQJR (DVW 0XQLFLSDOLW\ SDUFHO ' & 7KH QHLJKERXUKRRG ZDV HVWDEOLVKHG DIWHU WKH IRUFHG HYLFWLRQV RI ,Q DFFRUGDQFH ZLWK 'HFUHH 1R VRPH RI WKHVH SORWV ZHUH GHFODUHG RI SXEOLF XWLOLW\ DQG WRGD\ WKH LQKDELWDQWV IDFH WKH WKUHDW RI D IRUFHG HYLFWLRQ $FFRUGLQJ WR D UHSRUW SUHVHQWHG E\ WKH 3UHVLGHQW RI 8352%5,6$6 0U 6ROHU 3pUH] PRUH WKDQ WKLUW\ WKRXVDQG LQKDELWDQWV FXUUHQWO\ IDFH VHULRXV WKUHDWV RI EHLQJ HYLFWHG E\ SULYDWH FODLPDQWV ZKR SUHVHQW FLWDWLRQV VLJQHG E\ WKH 6WDWH $WWRUQH\ $PRQJ RWKHU FDVHV 3pUH] FLWHV WKH IROORZLQJ WKH 3ULPDU\ 6FKRRO GH $EULO EXLOW E\ WKH FRPPXQLW\ DQG ZLWK VWXGHQWV LV XQGHU WKUHDW RI HYLFWLRQ DV ZHOO DV PDQ\ IDPLOLHV IURP 9LOOD (OLVD ,, LQFOXGLQJ 0LJXHO Ã&#x2C6;QJHO 0DUtD %LGy DQG 7HUHVD /HLYD -DYLHU ,VDEHOLWD QHLJKERXUKRRG 6LWXDWHG DGMDFHQW WR WKH &DULEEHDQ 6HD WKLV QHLJKERXUKRRG LV SDUW RI WKH 6DQWR 'RPLQJR 0XQLFLSDOLW\ ,W ZDV HVWDEOLVKHG DIWHU WKH IDOO RI 7UXMLOOR¶V 'LFWDWRUVKLS DQG JUHZ EHWZHHQ DQG DIWHU VHYHUDO PLJUDWLRQV RI LQKDELWDQWV IURP RWKHU SURYLQFHV DQG IURP QHLJKERXUKRRGV LQ WKH FHQWUDO DUHD RI WKH FLW\ ,Q DFFRUGDQFH ZLWK 'HFUHH WKH SORWV RQ ZKLFK WKH QHLJKERXUKRRG LV VLWXDWHG SORWV ZHUH GHFODUHG RI SXEOLF XWLOLW\ &OXE +iELWDW LV WKH RUJDQL]DWLRQ ZKLFK FRRUGLQDWHV WKH VWUXJJOH DJDLQVW IRUFHG HYLFWLRQV DQG SURPRWHV WKH LVVXLQJ RI GHHGV ,WV FRRUGLQDWRU LV $UJHQWLQD 3HxD 7KH QHLJKERXUKRRG KDV VXIIHUHG VHYHUDO IRUFHG HYLFWLRQV )RU H[DPSOH WKH IROORZLQJ FODLPDQWV KDYH HYLFWHG UHVLGHQWV -RDQ\ 5DGKDPpV 5XL] 3RX \ -RVp 5RMDV &DQDDQ DJDLQVW IDPLO\ &KHFR 1LRYHV 3HxD *RQ]iOH] HYLFWHG IDPLOLHV RQ VWUHHW 1R RQ 0LJXHO Ã&#x2C6;QJHO 9HOiVTXH] 0DWRV HYLFWHG 0U )DXVWR %ULWR DQG WKH VKRS 6XSHU *DYL RQ 6SDLQ $YHQXH 7KH IROORZLQJ DUH FXUUHQWO\ WKH PRVW VHULRXV FDVHV RI HYLFWLRQV x 7ZHQW\ VL[ IDPLOLHV OLYLQJ DW NP RI $XWRSLVWD GH ODV $PpULFDV /DV $PHULFDV¶ +LJKZD\ DUH XQGHU WKUHDW RI EHLQJ HYLFWHG $FFRUGLQJ WR WKH LQKDELWDQWV RQ -XO\ DWWHPSWV ZHUH PDGH WR H[HFXWH WKH HYLFWLRQ ZLWK WKH KHOS RI ZLWK D JURXS RI DUPHG FLYLOLDQV SURWHFWHG E\ 3ROLFH GHVWUR\LQJ WKH KRXVHV DQG VWHDOLQJ SURSHUW\ DQG PRQH\ x 1LQHWHHQ IDPLOLHV WKDW OLYH LQ 6WUHHW 1R 1R UHDFKHG DQ DJUHHPHQW ZLWK WKH FODLPDQW 6yFUDWHV 2OLYR DQG ERXJKW WKH ODQG 7KLV FRQVHTXHQWO\ VWRSSHG D IRUFHG HYLFWLRQ DJDLQVW WKHP ZKLFK ZDV RUGHUHG E\ WKH 6XSUHPH &RXUW RI -XVWLFH
BBBBBBBBBBBB
$V LQ RWKHU SDUWV RI /DWLQ $PHULFD RXWO\LQJ VHWWOHPHQWV LQ WKH 'RPLQLFDQ 5HSXEOLF DUH QDPHG ZLWK UHIHUHQFH WR WKHLU GLVWDQFH DORQJ WKH KLJKZD\ IURP WKH FHQWUH RI WKH FLW\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3DUTXH 'HO (VWH 7KLV QHLJKERXUKRRG LV VLWXDWHG VRXWK RI /DV $PHULFDV +LJKZD\ DW 3ORW % 7KH ODQG ZDV GHFODUHG RI SXEOLF XWLOLW\ E\ 'HFUHH 0RUH WKDQ IDPLOLHV ZHUH HYLFWHG WR EXLOG WKH VRXWK ODQH RI WKH +LJKZD\ 0DQ\ RWKHUV KDYH EHHQ QRWL¿HG E\ WKH 6HFUHWDU\ RI 3XEOLF :RUNV RI HYLFWLRQ IRU WKH FRQVWUXFWLRQ RI WKH KLJKZD\ DQG RWKHU SXEOLF ZRUNV 7KH FRPPXQLW\ SURXGO\ FODLPV D VLWXDWLRQ RI ]HUR HYLFWLRQV DQG YROXQWDU\ UHORFDWLRQ ZLWK IXOO FRPSHQVDWLRQ RI DQ\ IDPLOLHV WKDW KDYH QHHGHG WR PRYH &OXE +DELWDW LV WKH FRPPXQLW\ RUJDQL]DWLRQ ZKLFK FRRUGLQDWHV WKH VWUXJJOH DJDLQVW HYLFWLRQV DQG DVVLVWV SHRSOH LQ WKHLU QHJRWLDWLRQV ZLWK WKH DXWKRULWLHV /RV 7UHV 2MRV LV D QHLJKERXUKRRG VLWXDWHG LQ WKH VXUURXQGLQJV RI ,VDEHOLWD QHLJKERXUKRRG FORVH WR WKH 7RXULVWLF 3DUN :LWK SUHFDULRXV KRXVHV EXLOW LQ KROORZV FDOOHG µ+R\RV GH 0DUtD¶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xR /RV &RUDOHV DQG ,QPRELOLD ± WKLV FRPSDQ\ LV RZQHG E\ WKH 6HFUHWDU\ RI 7RXULVP 2Q 0DUFK D YLROHQW IRUFHG HYLFWLRQ WRRN SODFH LQ WKLV FRPPXQLW\ PRPHQWV DIWHU WKH 0LVVLRQ KDG D PHHWLQJ ZLWK WKH 6WDWH $WWRUQH\ WKH *RYHUQRU RI 6DQWR 'RPLQJR 3URYLQFH DQG WKH 3UHVLGHQW RI WKH 3UHVLGHQWLDO &RPPLVVLRQ IRU 1HLJKERXUKRRG¶V 'HYHORSPHQW +HDY\ PDFKLQHU\ GHVWUR\HG KRXVHV DFFRUGLQJ WR WKH SUHVV (O &DULEH QHZVSDSHU DQG WKH UHSUHVHQWDWLYHV RI WKH FRPPXQLW\ +LODULR DQG $PSDUR 5XL] HYHQ WKRXJK IDPLOLHV KDG GHHGV LVVXHG E\ WKH JRYHUQPHQW 7KH 0LVVLRQ YLVLWHG WKH SODFH DQG WKH *RYHUQRU RI 6DQWR 'RPLQJR 3URYLQFH SURPLVHG WKH JRYHUQPHQW¶V LQWHUYHQWLRQ WR UHSDLU WKH GDPDJHV FDXVHG WR WKH KRPHV RI LQKDELWDQWV WKDW KDYH GHHGV /RV )UDLOHV QHLJKERXUKRRG LV VLWXDWHG DW NP RI $XWRSLVWD GH ODV $Pp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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
/D &LHQDJD *XDOH\ /RV *DQGXOHV 7KHVH QHLJKERXUKRRGV VLWXDWHG LQ WKH )HGHUDO 'LVWULFW QH[W WR WKH 2]DPD ULYHU 0RUH WKDQ WKRXVDQG IDPLOLHV OLYH LQ WKLV DQG RWKHU QHLJKERXUKRRGV WKUHDWHQHG ZLWK HYLFWLRQ E\ WKH 5(685( 3ODQ WKDW LQWHQGV WR GLVSODFH WKHVH IDPLOLHV DQG UHORFDWH WKHP WR RWKHU QHLJKERXUKRRGV ,Q GLVFXVVLRQV ZLWK WKH 0LVVLRQ UHSUHVHQWDWLYHV &LXGDG $OWHUQDWLYD DQG &23$'(%$ H[SODLQHG D SURSRVDO FDOOHG µ3ODQ &LJXD¶ WKDW DWWHPSWV WR REWDLQ UHORFDWLRQ DJUHHPHQWV ZLWK WKH LQKDELWDQWV ,W LV HVWLPDWHG WKDW D VLPLODU QXPEHU RI IDPLOLHV FRXOG EH GLVSODFHG IURP WKH HDVW PDUJLQ RI WKH 2]DPD 5LYHU IRU WKH FRQVWUXFWLRQ RI WKH $YHQLGD GHO 5tR 5LYHU $YHQXH DFFRUGLQJ WR WKH 5(685( 3ODQ %DUULR /D ,VOLWD 6DEDQD 3HUGLGD 6HFWRU 3UR\HFW ,19, ± ³/D 9LUJHQ´ 2Q D YLVLW ZLWK &23$'(%$ WR VHFWRUV /D ,VOLWD DQG 3UR\HFWR /D 9LUJHQ 0LVVLRQ UHSUHVHQWDWLYHV ZLWQHVVHG DOWHUQDWLYH FRPPXQLW\ ZRUN 7KLV ]RQH LV LVRODWHG LQ UDLQ\ ZHDWKHU GXH WR Ã&#x20AC;RRGLQJ 7R DGGUHVV WKLV VLWXDWLRQ )DWKHU 1HOVRQ $FHYHGR WKH SDULVK SULHVW RI WKH ]RQH IDFLOLWDWHG WKH YROXQWDU\ UHORFDWLRQ RI WR IDPLOLHV WR WKH 6WDWH +RXVLQJ 3URJUDP µ/D 9LUJHQ¶ $V FRPPRQO\ KDSSHQV DV UHODWHG WR WKH 0LVVLRQ E\ WKH VHWWOHUV WKH SURJUDPPH RULJLQDOO\ HVWDEOLVKHG WR UHORFDWH IDPLOLHV OLYLQJ LQ Ã&#x20AC;RRG SODLQV HQGHG XS EHQH¿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µQR FXHQWDQ FRQ DFDEDGRV¶ $FFRUGLQJ WR VHWWOHUV RQO\ WR KRXVLQJ XQLWV DUH RFFXSLHG DQG RWKHU VHWWOHUV KDYH QRW EHHQ DXWKRUL]HG WR PRYH LQ 6HWWOHUV KDYH WR SD\ DQ LQLWLDO IHH RI 'RPLQLFDQ SHVRV DERXW 86 DW WKH FXUUHQW H[FKDQJH UDWH DQG PXVW SD\ D PRQWKO\ UHQW WKDW Ã&#x20AC;XFWXDWHV EHWZHHQ WR SHVRV +RZHYHU VHWWOHUV LQGLFDWHG WKDW IDPLOLHV UHORFDWHG IURP /D ,VOLWD DUH QRW SD\LQJ WKH UHQW EHFDXVH WKH\ KDYH QRW \HW UHFHLYHG DQ RI¿FLDO FRQWUDFW 7KH\ RQO\ KDYH D SHUPLW WR RFFXS\ WKH KRXVLQJ XQLWV
0HHWLQJV ZLWK RI¿FLDO LQVWLWXWLRQV 0LVVLRQ PHPEHUV KHOG PHHWLQJV ZLWK UHSUHVHQWDWLYHV RI WKH IROORZLQJ VWDWH LQVWLWXWLRQV QDPHO\ x x x x x x x
µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU¶ 0XQLFLSDO JRYHUQPHQWV RI %RFD &KLFD DQG OD &DOHWD 3UHVLGHQW RI WKH &KDPEHU RI 'HSXWLHV *RYHUQRU RI 6DQWR 'RPLQJR 3URYLQFH 3UHVLGHQW RI WKH µ&RPLVLyQ %DUULDO¶ 6WDWH $WWRUQH\ 3DUOLDPHQWDU\ EORFNV RI WKH 1DWLRQDO &RQJUHVV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
x &HQWUDO *RYHUQPHQW &RRUGLQDWRU RI (XURSHDQ )XQGV 1DWLRQDO +RXVLQJ ,QVWLWXWH ,19, 1DWLRQDO &RPPLVVLRQ RI 6WDWH 5HIRUP &21$5( *HQHUDO 'LUHFWRUDWH RI 1DWLRQDO 5HVRXUFHV 0LVVLRQ PHPEHUV DOVR KHOG WKH IROORZLQJ PXOWL VHFWRUDO PHHWLQJV x 1DWLRQDO )HGHUDWLRQ RI 0XQLFLSDOLWLHV )(1$0$ 0XQLFLSDOLW\ RI 6DQWR 'RPLQJR (VWH 0XQLFLSDOLW\ RI 6DQ 3HGUR GH 0DFRUtV ³(VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU´ &HQWUDO *RYHUQPHQW ,QVWLWXWLRQV 3URYLQFLDO *RYHUQRU 6WDWH $WWRUQH\ *HQHUDO 'LUHFWRUDWH RI 1DWLRQDO 5HVRXUFHV x &HQWUDO *RYHUQPHQW ,QVWLWXWLRQV ,19, &21$5( 21)(' 1DWLRQDO 5HVRXUFHV x 3XEOLF +HDULQJ ZLWK VRFLDO RUJDQL]DWLRQV
3KRWR <YHV &DEDQQHV
7KH $*)( WHDP PHW ZLWK WKH 0D\RUV RI %RFD &KLFD DQG &DOHWD DQG D JURXS RI ZRPHQ RQ ,QWHUQDWLRQDO :RPHQ¶V 'D\
0HGLD SDUWLFLSDWLRQ 7KH 0LVVLRQ¶V DFWLYLWLHV LQ SDUWLFXODU WKH 3DUOLDPHQWDU\ VHVVLRQ ZHUH ZLGHO\ FRYHUHG E\ QDWLRQDO WHOHYLVLRQ FKDQQHOV UDGLR VWDWLRQV DQG QHZVSDSHUV ,Q DGGLWLRQ WKH 0LVVLRQ ZDV LQYLWHG WR WKUHH SULPH WLPH WHOHYLVLRQ SUHVHQWDWLRQV RI PLQXWHV HDFK RQ WKH IROORZLQJ WHOHYLVLRQ FKDQQHOV 6WDWH &KDQQHO 579' &KDQQHO 7HOHPLFUR DQG &KDQQHO
5HVXOWV RXWSXWV 5HVXOWV UHDFKHG GXULQJ WKH $*)( 0LVVLRQ DUH RUJDQL]HG DFFRUGLQJ WR WKH 0LVVLRQ¶V ¿UVW IRXU REMHFWLYHV )ROORZ XS DFWLYLWLHV DUH GHWDLOHG LQ LWHP DQG FRUUHVSRQG WR WKH ¿IWK REMHFWLYH RI ³DJUHHLQJ RQ D WLPHWDEOH WR PRQLWRU DQG REVHUYH DGYDQFHV LQ FRQWUROOLQJ HYLFWLRQV´ µGHVDORMRV¶
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
5HJDUGLQJ 2EMHFWLYH $SSUDLVDO RI WKH VWDWXV RI (FRQRPLF 6RFLDO DQG &XOWXUDO ULJKWV SDUWLFXODUO\ LQ UHJDUG WR +RXVLQJ 5LJKWV x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x 7KHVH UHFHQW HYLFWLRQV LQ 9LOOD (VIXHU]R PDUN WKH UHVXPSWLRQ RI WKH SUDFWLFH DJDLQVW ZKLFK WKHUH KDV EHHQ D PRUDWRULXP IRU WKH SDVW PRQWKV RI YLROHQWO\ UHPRYLQJ IDPLOLHV IURP ODQG ZKLFK WKH\ KDYH RFFXSLHG IRU VHYHUDO \HDUV ,Q WKHVH HYLFWLRQV WKH 6WDWH GLG QRW WDNH LQWR DFFRXQW WKDW PRUH WKDQ D KXQGUHG VHWWOHUV KDG WLWOH GHHGV µWtWXORV¶ ZKLFK ZHUH JUDQWHG E\ WKH 6WDWH 6XJDU &RXQFLO &($ WKDW VHWWOHUV KDG EXLOW WKHLU KRXVHV DQG WKDW 6WDWH DJHQFLHV KDG JUDQWHG WKHP ZDWHU DQG VDQLWDU\ VHUYLFHV DV ZHOO DV URDGV 7KLV FDVH LOOXVWUDWHV KRZ RQH 6WDWH HQWLW\ LPSOHPHQWHG WKH GHVWUXFWLRQ RI LQVWLWXWLRQV DQG VHUYLFHV ZKLFK RWKHU 6WDWH DJHQFLHV KDG KHOSHG WR GHYHORS x ,Q WKH VDPH ZD\ WKH 0LVVLRQ KDV EHHQ DEOH WR FRUURERUDWH WKH H[LVWHQFH RI VWDWH RUJDQLVDWLRQV DQG SURFHGXUHV ZKLFK FRQFHQWUDWH WKH SRZHU RI GHFLVLRQ RYHU HYLFWLRQV 7KHVH 6WDWH RUJDQLVDWLRQV LQ WKHLU DVVHVVPHQW RI WKH µFDUiFWHU HMHFXWRULR¶ RI WKH ODQG SURSHUW\ GHHGV WKHQ DXWKRUL]H WKH HYLFWLRQV ZLWK WKH SDUWLFLSDWLRQ RI WKLUG SDUWLHV ZKLFK GR QRW UHSUHVHQW VWDWH DJHQFLHV EXW UDWKHU DUH DJHQWV RI WKH SULYDWH HYLFWLRQ SODLQWLII 7KLV VLWXDWLRQ EHFRPHV HYHQ PRUH DODUPLQJ LQ WKDW WKHUH KDYH EHHQ RI¿FLDO DFWLRQV WKDW XQGHUPLQH WKH OHJLWLPDF\ RI ODQG RZQHUVKLS ,Q WKLV VHQVH WKH 0LVVLRQ KDV JDWKHUHG WKH DVVHUWLRQV RI SURYLQFLDO DQG PXQLFLSDO DXWKRULWLHV WKDW IRU H[DPSOH PRUH WKDQ RQH GHHG KDV EHHQ SUHVHQWHG IRU WKH VDPH SORW RI ODQG RU WKDW VXFK GHHGV ODFN SUHFLVH JHRJUDSKLFDO UHIHUHQFHV WKDW PD\ IDFLOLWDWH GHWHUPLQDWLRQ RI WKHLU H[DFW ORFDWLRQ x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x 2Q WKH RWKHU KDQG PHPEHUV RI WKH 0LVVLRQ KDYH DOVR ZLWQHVVHG FHUWDLQ SRVLWLYH VWHSV LQ WKH DFWLYLWLHV RI GLYHUVH DJHQWV ERWK LQ WKH JRYHUQPHQW DQG ZLWKLQ FLYLO VRFLHW\ $PRQJ WKHVH DUH R $FWLRQV RI WKH *RYHUQRU RI WKH 6DQWR 'RPLQJR 3URYLQFH 6HxRU 5HQDWR *DUFLD LQ FRQÃ&#x20AC;LFW PHGLDWLRQ RYHU ODQG WKH HVWDEOLVKPHQW RI D OHJDO FRXQVHOOLQJ XQLW WR DVVLVW VHWWOHUV DQG WKH VHDUFK IRU VROXWLRQV WKDW WDNH LQWR DFFRXQW WKH OHJLWLPDWH LQWHUHVWV RI
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
DOO FRQFHUQHG SDUWLHV ± WKH OHJLWLPDWH GHHG KROGHUV DV ZHOO DV WKRVH WKDW KDYH EXLOW KRXVLQJ DQG XUEDQLVHG SUHYLRXVO\ LQKRVSLWDEOH ODQG 7KRVH ODQGV KDYH JDLQHG YDOXH DQG FRQWULEXWHG WR WKH DSSUHFLDWLRQ RI QHLJKERXULQJ DUHDV R /HJLVODWLYH LQLWLDWLYHV RI VWDWH DJHQFLHV WKDW GHFODUH WKH SXEOLF YDOXH RI DWWHQGLQJ WR GLYHUVH ODQGV DQG DFWLRQV E\ UHSUHVHQWDWLYHV RI FLYLO VRFLHW\ VXFK DV WKH µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU SRU OD 'HIHQVD GHO 7HUULWRULR¶ 7KLV KDV IDFLOLWDWHG D %LOO WKH /DZ 5HJDUGLQJ 8UEDQ /DQG 2FFXSDWLRQ µ/H\ VREUH 7HQHQFLD GH 6XHOR 8UEDQR¶ R 6HYHUDO PXQLFLSDOLWLHV VXFK DV %RFD &KLFD /D &DOHWD \ 6DQWR 'RPLQJR (VWH KDYH GHPRQVWUDWHG WKHLU FRPPLWPHQW WR ¿QG VROXWLRQV WR WKH SUREOHP RI WKH OHJDO LQVHFXULW\ RI ODQG RFFXSDQF\ DQG IRUFHG HYLFWLRQV 7KHVH VROXWLRQV ZRXOG EH EDVHG RQ D VRFLDO DQG QRW H[FOXVLYHO\ RQ D OHJDO FKDUDFWHUL]DWLRQ RI WKH SUREOHP ,Q DGGLWLRQ WKH 1DWLRQDO )HGHUDWLRQ RI 0XQLFLSDOLWLHV KDYH FRPPLWWHG LWV DYDLODELOLW\ WR ZRUN LQ WKH 7HUULWRULDO 2UJDQL]DWLRQ µ2UGHQDPLHQWR 7HUULWRULDO¶ R $ YHU\ DFWLYH FLYLO VRFLHW\ RUJDQL]HG LQ WKH µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQD 3RSXODU 3RU OD 'HIHQVD GHO 7HUULWRULR¶ LV FRPSRVHG RI YDULRXV VRFLDO RUJDQL]DWLRQV ZLWK WKH VXSSRUW RI QRQ SUR¿W LQVWLWXWLRQV 7KLV (VSDFLR RIIHUV FRXQVHOOLQJ WR VHWWOHPHQWV LQ WKHLU EXVLQHVV µJHVWLRQHV¶ ZLWK DXWKRULWLHV DQG SULYDWH SDUWLHV LQ WKH GHIHQVH RI KRXVLQJ ULJKWV DQG DJDLQVW PDVVLYH HYLFWLRQV DQG KDV DOVR GHYHORSHG DQ DOWHUQDWLYH KRXVLQJ SURSRVDO ZKLFK KDV EHHQ SUHVHQWHG DV D %LOO RQ XUEDQ ODQG RFFXSDWLRQ 6XFK DFWLYLWLHV LGHQWLI\ WKH (VSDFLR GH &RRUGLQDFLy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¿QG VROXWLRQV WKDW ZRXOG EH EHQH¿FLDO WR DOO SDUWLHV FRQFHUQHG 5HJDUGLQJ 2EMHFWLYH 7R RIIHU H[SHULHQFH DQG NQRZOHGJH WR &HQWUDO *RYHUQPHQW DJHQFLHV PXQLFLSDOLWLHV &RQJUHVV WKH -XGLFLDU\ VRFLDO PRYHPHQWV DQG 1*2V UHJDUGLQJ WKH DSSOLFDWLRQ RI LQWHUQDWLRQDO ODZV DQG WUHDWLHV RQ KXPDQ ULJKWV LQ VRIDU DV WKH\ DSSO\ WR KRXVLQJ ULJKWV DQG SURWHFWLRQ DJDLQVW HYLFWLRQ 6LJQL¿FDQW SURSRVDOV KDYH EHHQ PDGH IRU WKH LPSURYHPHQW RI WKH %LOO µ(VSDFLR GH &RRUGLQDFLyQ GH OD 7LHUUD¶ ZLWK UHJDUG WR WKH IROORZLQJ DUHDV µ7LWXODFLyQ¶ 'HHGV µ3URFHGLPLHQWR \ YDORUL]DFLyQ SDUD ODV UHXELFDFLRQHV¶ 3URFHGXUHV DQG HVWDEOLVKPHQW RI YDOXH IRU UHVHWWOHPHQW µ,QGHPQL]DFLyQ SDUD PHMRUDV¶ µ,QGHPQL]DWLRQ¶ IRU LPSURYHPHQWV µ3URFHVRV GH SODQL¿FDFLyQ GH ORV EDUULRV¶ 3ODQQLQJ SURFHVVHV LQ QHLJKERXUKRRGV µ)RQGRV \ 5HFXUVRV SDUD OD UHJXODUL]DFLyQ \ HO PHMRUDPLHQWR GH OD YLYLHQGD¶ )XQGV DQG UHVRXUFHV IRU KRXVLQJ UHJXODUL]DWLRQ DQG
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
LPSURYHPHQW µ'H ODV LQVWDQFLDV GHO FRQFHSWR GH YLYLHQGD GLJQD¶ &RQFHSW RI SURSHU KRXVLQJ HWF ,Q D VLPLODU PDQQHU WKH 0LVVLRQ WHDP RIIHUHG VXJJHVWLRQV WR GLIIHUHQW VWDWH LQVWLWXWLRQV PXQLFLSDOLWLHV DQG WKH &KDPEHU RI 'HSXWLHV 5HJDUGLQJ 2EMHFWLYH 7R H[FKDQJH LQWHUQDWLRQDO H[SHULHQFHV RQ SURSHU SUDFWLFHV WR SUHYHQW HYLFWLRQV %DVHG RQ WKH SUHVHQWDWLRQ RI H[SHULHQFHV LQ ODQG UHJXODWLRQ LQ 7KDLODQG 0p[LFR %UD]LO DQG 3HUX WKH *RYHUQPHQW RI WKH 3URYLQFH RI 6DQWR 'RPLQJR KDV VKRZQ D ZLOOLQJQHVV WR WXUQ WKH FDVH RI 9LOOD (VIXHU]R LQWR D V\PEROLF FDVH µHPEOHPiWLFR¶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x (VWDEOLVKPHQW RI D PXOWL SDUW\ 3DUOLDPHQWDU\ &RPPLVVLRQ WR UHYLHZ OHJDO SURSRVDOV VXEPLWWHG WR WKH &RQJUHVV E\ VRFLDO RUJDQL]DWLRQV 6XFK D FRPPLVVLRQ ZRXOG EH HQWUXVWHG WR IRUPXODWH D QRUPDWLYH IUDPHZRUN DQG QRUPDWLYH VWDQGDUGV ZKLFK LQWHJUDWH DQG DFWXDOL]HV VXFK SURSRVDOV DQG DQ\ RWKHUV GHHPHG QHFHVVDU\ WR HOLPLQDWH WKH SUDFWLFH RI IRUFHG HYLFWLRQV DQG EULQJ ODQG WHQXUH VHFXULW\ WR HFRQRPLFDOO\ GLVDGYDQWDJHG VHWWOHUV x (VWDEOLVKPHQW RI D QDWLRQDO WULSDUWLWH µ5RXQG 7DEOH¶ PHVD QDFLRQDO GH FRQFHUWDFLyQ WULSDUWLWD ZKLFK EDVHG RQ FRQJUHVVLRQDO DFWLYLWLHV ZLOO LQFOXGH PXQLFLSDO UHSUHVHQWDWLYHV WKURXJK WKH QDWLRQDO PXQLFLSDOLWLHV IHGHUDWLRQ DQG WKH µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU SRU OD 'HIHQVD GHO 7HUULWRUL¶ ZKLFK ZRXOG UHSUHVHQW FLYLO VRFLHW\ 7KLV 0HVD GH &RQFHUWDFLyQ ZRXOG DOVR SDUWLFLSDWH LQ WKH DQDO\VLV DQG IRUPXODWLRQ RI WKH DERYHPHQWLRQHG QRUPDWLYH SURSRVDOV x ,QVWXWLRQDOLVDWLRQ RI VXSSRUW RI¿FHV IRU VHWWOHUV IDFHG ZLWK HYLFWLRQ LQ GLIIHUHQW DUHDV WKURXJK WKH 3URYLQFLDO *RYHUQPHQW %RFD &KLFD 0XQLFLSDOLW\ DQG FRPPXQLW\ RUJDQL]DWLRQV UHODWHG WR WKH µ(VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU SRU OD 'HIHQVD GHO 7HUULWRULR¶ x $JUHHPHQW RI PD\RUV µVtQGLFRV¶ WR SHWLWLRQ WKH 1DWLRQDO *RYHUQPHQW DQG WKH &RQJUHVV WR VWRS IRUFHG HYLFWLRQV XQWLO WKH ODZ WR VDIHJXDUG ODQG RFFXSDWLRQ LV GHYHORSHG µIRUPXODGD¶ 2WKHU 5HVXOWV 7KH IROORZLQJ YHU\ LPSRUWDQW LVVXHV KDYH EHHQ PDGH SDUW RI WKH QDWLRQDO DJHQGD GHHGV µWLWXODFLyQ HYLFWLRQV IRUFHG HYLFWLRQV SXEOLF XVHIXOQHVV GHFODUDWLRQV µGHFODUDFLyQ GH XWLOLGDG S~EOLFD¶ ODQG H[FKDQJHV µSHUPXWD GH WLHUUD¶ 7KHVH WRSLFV KDYH EHHQ GLVFXVVHG LQ VHYHUDO SXEOLF LQVWLWXWLRQV VXFK DV WKH 1DWLRQDO &RQJUHVV WKH *RYHUQRU RI WKH 6DQWR 'RPLQJR 3URYLQFH 0D\RUV µ6tQGLFRV¶ IURP GLYHUVH PXQLFLSDOLWLHV 6LPLODUO\ LQLWLDWLYHV DQG SURJUHVV LQ GLDORJXH DQG DJUHHPHQW WR HOLPLQDWH WKH SUDFWLFH RI HYLFWLRQ DQG VDIHJXDUG ODQG RFFXSDQF\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
KDYH EHHQ ZLGHVSUHDG WKURXJK WKH PDVV PHGLD VXFK DV WHOHYLVLRQ UDGLR DQG QHZVSDSHUV
)ROORZ XS DFWLYLWLHV &KDPEHU RI 'HSXWLHV 7KH 0LVVLRQ PHW WZLFH ZLWK LQ WKH &KDPEHU RI 'HSXWLHV 2Q 0DUFK LW PHW WKH 3UHVLGHQW RI WKH &KDPEHU 6HxRU $OIUHGR 3DFKHFR DQG WKHQ RQ 0DUFK KHOG D PHHWLQJ FRRUGLQDWHG E\ WKH 3UHVLGHQW ZLWK WKH YDULRXV SROLWLFDO EORFNV UHSUHVHQWHG LQ WKH &KDPEHU RI 'HSXWLHV 'HSXWLHV DJUHHG WR LQLWLDWH WKH SURFHVV WR VXEPLW D %LOO WLWOHG µ3UR\HFWR &RQVHQVXDGR GH OH\ GH 7LWXODFLyQ¶ DQG WR DWWDLQ LWV DSSURYDO ZLWKLQ WHQ PRQWKV ZLWK WKH IROORZLQJ REOLJDWLRQV x 7R QDPH WKH 3DUOLDPHQWDU\ &RPPLVVLRQ E\ 0DUFK x ,QIRUP $*)( WKH ([HFXWLYH DQG WKH (VSDFLR 8UEDQR 3RSXODU \ )(1$086 x 6XEPLW D OHWWHU DGGUHVVHG WR WKH 3UHVLGHQW RI WKH 5HSXEOLF ZLWK D FRS\ WR WKH 6WDWH $WWRUQH\ UHJDUGLQJ D PRUDWRULXP RQ HYLFWLRQV XQWLO WKHUH LV D YRWH RQ WKH ODZ (VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU ,Q WZR PHHWLQJV ZLWK WKH (VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU WKLV RUJDQL]DWLRQ FRQ¿UPHG LWV ZLOOLQJQHVV WR SDUWLFLSDWH LQ WKH URXQG WDEOH DQG HVWDEOLVKHG WKH IROORZLQJ WLPHWDEOH x 6RFLDOL]H WKH UHVXOWV RI WKH 0LVVLRQ EHIRUH 0DUFK
x &RQYHQH D ZRUNVKRS WR XSGDWH WKH %LOO DQG $SULO x 3XEOLF LQIRUPDWLRQ ³GLIXVLyQ´ DQG DZDUHQHVV ³VHQVLELOL]DFLyQ´ RI WKH %LOO $SULO -XQH )(1$08 7KH 0XQLFLSDO )HGHUDWLRQ DJUHHG WR SDUWLFLSDWH LQ WKH 0HVD GH 'LiORJR IRU WKH DSSURYDO RI WKH %LOO ZLWK WKH 1DWLRQDO &RQJUHVV DQG WKH (VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU DQG WKH DFTXLHVFHQFH RI WKH &HQWUDO *RYHUQPHQW ,W DJUHHG WR x 3URPRWH WKH DSSURYDO RI D 0XQLFLSDO 5HVROXWLRQ µ5HVROXFLyQ 0XQLFLSDO¶ WR VWRS IRUFHG HYLFWLRQV 3URYLQFLDO *RYHUQRU (VSDFLR 7KH 0LVVLRQ PHW VHYHUDO WLPHV ZLWK WKH *RYHUQRU RI WKH 6DQWR 'RPLQJR 3URYLQFH 6HxRU 5HQDWR *DUFtD ¿UVW RQ 0DUFK DQG KH DJUHHG WR WKH IROORZLQJ x $FWLYDWH WKH PXOWLSDUW\ RI¿FH µ2¿FLQD PL[WD¶ RQ HYLFWLRQV $SULO x &RRUGLQDWH EHWZHHQ ODZ\HUV IURP ERWK LQVWLWXWLRQV x 0RYH IRU WKH LPPHGLDWH VROXWLRQ IDYRXULQJ WKH IDPLOLHV WKDW ZHUH YLROHQWO\ HYLFWHG LQ WKH EDUULR 9LOOD (VIXHU]R &RQJUHVV (VSDFLR \ )HQDPX 'XH WR WKH 0LVVLRQ¶V DFWLYLWLHV WKH IROORZLQJ DJUHHPHQWV ZHUH UHDFKHG x (VWDEOLVKPHQW RI WKH 0HVD 1DFLRQDO GH &RQFHUWDFLyQ E\ $SULO x 'RFXPHQWDWLRQ µOHYDQWDPLHQWR¶ RI HYLFWLRQ WKUHDWV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$*)( 7KH 0LVVLRQ UHFHLYHG DPSOH GRFXPHQWDWLRQ DQG WHVWLPRQ\ DERXW HYLFWLRQV DQG KDG WKH RSSRUWXQLW\ WR GLUHFWO\ DVVHVV WKH VLWXDWLRQ LQ YLVLWV WR EDUULRV DQG LQ PDVVLYH PHHWLQJV VXFK DV 9DOLHQWH ,VDEHOLWD %ULVDV GHO (VWH /RV 7UHV 2MRV DQG 3DUTXH GHO (VWH DQG DW WKH 3XEOLF $XGLHQFH ZLWK VRPH SHUVRQV RQ 6DWXUGD\ 0DUFK 7KRXVDQGV RI IDPLOLHV SDUWLFLSDWHG LQ WKH 0LVVLRQ YLVLW WR 9LOOD (VIXHU]R WKH EDUULR VXEMHFW WR HYLFWLRQ RQ 6XQGD\ 0DUFK
3KRWR $UFKLYHV &OXGDG $OWHUQDWLYH
'XULQJ SXEOLF FRQVXOWDWLRQV WKH $*)( PLVVLRQ KHDUG WHVWLPRQ\ RI IRUFHG HYLFWLRQV DW SODFHV VXFK DV %ULVDV GHO (VWH LQ
,Q DGGLWLRQ DOO VWDNHKROGHUV GHPDQGHG IROORZ XS PRQLWRULQJ DQG WKH FROODERUDWLRQ RI $*)( GXULQJ WKH SURFHVV RI HODERUDWLRQ DQG SURPXOJDWLRQ RI WKH µ/H\ GH 7LWXODFLyQ¶
/HVVRQV OHDUQHG 0DQ\ OHVVRQV FDQ EH OHDUQHG IURP WKH 0LVVLRQ¶V DFWLYLWLHV LQ WKH 'RPLQLFDQ 5HSXEOLF 7KH IROORZLQJ DUH KLJKOLJKWHG x 7KH H[LVWHQFH RI IRUFHG HYLFWLRQ SUDFWLFHV LQ WKLV FRXQWU\ ZKLFK LQ VRPH ZD\ KDYH EHHQ MXVWL¿HG E\ QDWLRQDO ODZV LQ SDUWLFXODU /H\ ZKLFK VKDOO KRSHIXOO\ EH UHSHDOHG E\ D UHFHQWO\ DSSURYHG µ/H\ GH 5HJLVWUR ,QPRELOLDULR¶ /H\ HVWDEOLVKHG WKH DXWKRULW\ RI WKH 6WDWH $WWRUQH\ EHIRUH WKH /DQG 7ULEXQDO ZKLFK UHSUHVHQWV WKH 6WDWH DQG KDV PXOWLSOH IXQFWLRQV $V 6U 1HOVRQ 0RQWiV KLPVHOI H[SUHVVHG WR WKLV 0LVVLRQ ³, UHSUHVHQW SHUVRQV WKDW KDYH WLWOH GHHGV´ DQG ³HYLFWLRQV DOZD\V KDYH WR EH YLROHQW´ x 7KH 0LVVLRQ GLVFRYHUHG WKDW WKHUH ZDV D ZLOOLQJQHVV DPRQJ GLIIHUHQW SROLWLFDO DFWRUV EORFNV IURP DOO SROLWLFDO SDUWLHV UHSUHVHQWHG LQ WKH 1DWLRQDO &RQJUHVV PXQLFLSDOLWLHV DQG WKH &HQWUDO *RYHUQPHQW DV ZHOO DV WKH (VSDFLR 8UEDQR 3RSXODU WR UHDFK DJUHHPHQWV WKDW PD\ IDFLOLWDWH VROXWLRQV DQG DOWHUQDWLYHV WR IRUFHG HYLFWLRQ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
x :LWK WKH 0LVVLRQ¶V SDUWLFLSDWLRQ FRQVHQVXV ZDV UHDFKHG ZLWK WKH GLIIHUHQW DFWRUV LQ RUGHU WR R 0DNH HYLFWLRQV D PXOWLGLPHQVLRQDO WRSLF OHJDO VRFLDO SROLWLFDO DQG LQVWLWXWLRQDO R 3UHVHQW VROXWLRQV WR SUREOHPV DVVRFLDWHG ZLWK WLWOH GHHGV µWLWXODFLyQ¶ R 6HHN WKH LPSOHPHQWDWLRQ RI SUHYHQWLYH SROLFLHV IXQGV ERQGV µERQRV¶ ODQG H[FKDQJHV µSHUPXWDV GH WLHUUDV¶ FLW\ VWDWXWHV µHVWDWXWR GH OD FLXGDG¶ ODQG EDQN µEDQFR GH OD WLHUUD¶ R 5H HVWDEOLVK WKH UROH RI WKH 6WDWH DV PHGLDWRU LQ ODQG FRQÃ&#x20AC;LFWV EHWZHHQ FRPPXQLWLHV DQG WKH SULYDWH VHFWRU RU EHWZHHQ SULYDWH HQWLWLHV
BBBBBBBBBBBB
7KH IXOO PLVVLRQ UHSRUW RQ ¿OH ZLWK $*)( LQFOXGHV WKH IROORZLQJ DGGHQGD ZKLFK DUH XQIRUWXQDWHO\ WRR ODUJH WR UHSURGXFH KHUH (VSDFLR GH &RRUGLQDFLyQ 5HSRUW WR $*)( 1DWLRQDO (YLFWLRQ 0DS 6DQWR 'RPLQJR (YLFWLRQ 0DS /LVW RI SHUVRQV ORFDWHG SRVLWLRQ PDLOLQJ DGGUHVVHV SKRQH QXPEHUV /LVW RI YLVLWHG EDUULRV SHUVRQV SUHVHQW DQG PDS 'RFXPHQWDWLRQ RI H[DPLQHG FDVHV DQG GRFXPHQWDWLRQ PHPR 3KRWRJUDSKLF UHYLHZ DQG YLGHRV /HJDO 'RFXPHQWV D &RQVWLWXFLyQ RI WKH 'RPLQLFDQ 5HSXEOLF E /DQG /DZ ³VREUH WLHUUD´ PRGL¿HG E\ WKH ³OH\ GH UHJLVWUR LQPRELOLDULR´ QRW SURPXOJDWHG F ([WUDFW IURP WKH ³/H\ GH 5HJLVWUR ,QPRELOLDULR´ 5HFHQWO\ DSSURYHG DQG QRW 3URPXOJDWHG WKDW VXEVWLWXWHV ³/H\ VREUH 7LHUUDV´ HVWDEOLVKHV WKH DXWKRULW\ RI WKH 6WDWH $WWRUQH\ G ³3UR\HFWR GH /H\ 3UHVHQWDGR \ DSUREDGR SRU HO &RQJUHVR 1DFLRQDO HQ HO ´ 1RW SURPXOJDWHG H $QWHSUR\HFWR GH /H\ ³ELOO´ SUHVHQWHG E\ WKH (VSDFLR GH &RRUGLQDFLyQ 8UEDQR 3RSXODU I '(&5(72 3ODQ 1DFLRQDO GH 7LWXODFLyQ GH 7LHUUDV 'HO (VWDGR 'RPLQLFDQR J '(&5(72 2UGHUV GHHGV IDYRULQJ SHUVRQV RFFXS\LQJ 'RPLQLFDQ 6WDWH RZQHG ODQG K '(&5(72 &UHDWHV D &RPPLVVLRQ IRU WKH DSSOLFDWLRQ RI 'HFUHWR L '(&5(72 'HFODUHV WKH SXEOLF XWLOLW\ ³8WLOLGDG 3~EOLFD´ RI QXPHURXV ODQG SORWV LQ EDUULRV ,VDEHOLWD /RV 2MRV \ 3DUTXH GHO (VWH 7KHVH SRSXODWLRQV VXIIHU HYLFWLRQV M '(&5(72 )DYRUV FRPPXQLWLHV LQ EDUULRV 3DUTXH GHO (VWH %ULVDV GHO (VWH 6DQ %DUWROD \ (O %ULVDO ZKRVH ODQGV KDYH EHHQ GHFODUHG RI SXEOLF XWLOLW\ 3HUXYLDQ UHIHUHQFHV 0LVVLRQ PHPEHUV¶ &9V
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
0LVVLRQ WR &XULWLED %UD]LO )HEUXDU\ %DFNJURXQG LQIRUPDWLRQ DQG MXVWL¿FDWLRQ IRU $*)( ¿HOG PLVVLRQ WR &XULWLED %UD]LO ,Q WKH PHHWLQJ RI WKH 81 +$%,7$7 $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)( ZKLFK WRRN SODFH GXULQJ WKH 8UEDQ 6RFLDO )RUXP LQ %DUFHORQD 6HSWHPEHU VHYHUDO FLWLHV ZKHUH IRUFHG HYLFWLRQV KDG EHHQ LPSOHPHQWHG RU ZHUH EHLQJ SODQQHG ZHUH LGHQWL¿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mR %UiV 3HGUR 0DFKDGR 9LWyULD DQG 9LOD ,OKD GR 0HO LQ WKH 0XQLFLSDOLW\ RI &XULWLED DQG 9LOD /HRQLFH LQ WKH 0XQLFLSDOLW\ RI $OPLUDQWH 7DPDQGDUp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x /HWtFLD 0DUTXHV 2VyULR $*)( PHPEHU $PHULFDV 3URJUDPPH &R RUGLQDWRU &2+5( &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV x 3DXOR 7HL[HLUD $*)( PHPEHU FLW\ FRXQFLOORU LQ WKH 0XQLFLSDOLW\ RI 6mR 3DXOR x ,QrV 0DJDOKmHV UHSUHVHQWDWLYH RI 0LQLVWHU 2OtYLR 'XWUD 0LQLVWU\ RI WKH &LWLHV x 3DWUtFLD 0HQH]HV &DUGRVR UHSUHVHQWDWLYH RI WKH 1DWLRQDO 5DSSRXUWHXU RQ WKH 5LJKW WR $GHTXDWH +RXVLQJ DQG 8UEDQ /DQG IURP 3ROLV ,QVWLWXWH x /HDQGUR *RUVGRUI FR RUGLQDWRU RI 1*2 7HUUD GH 'LUHLWRV x 0RYLPHQWR 1DFLRQDO GH /XWD SHOD 0RUDGLD %UD]LOLDQ 0RYHPHQW IRU +RXVLQJ 6WUXJJOH BBBBBBBBBBBB
7KLV LV D WUDQVODWHG H[WUDFW IURP WKH UHSRUW RI WKH $*)( PLVVLRQ WHDP WKDW YLVLWHG &XULWLED %UD]LO IURP )HEUXDU\ 7KLV UHSRUW ZDV ZULWWHQ E\ /HWLFLD 2VRULR 0LVVLRQ &RRUGLQDWRU 7KH QDPHV RI WKH PHPEHUV RI WKH WHDP DUH JLYHQ EHORZ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3KRWR $GUULDQR %DUGR
(YLFWLRQ LQ SURJUHVV &XULWLED %UD]LO
7KH VLWXDWLRQ LQ &XULWLED ,Q WKH 1*2 µ7HUUD GH 'LUHLWRV 0RYLPHQWR 1DFLRQDO GH /XWD SHOD 0RUDGLD¶ DQG UHSUHVHQWDWLYHV IURP WKH DIIHFWHG FRPPXQLWLHV SUHVHQWHG D UHSRUW RQ WKH IROORZLQJ IRUFHG HYLFWLRQ FDVHV LPSOHPHQWHG E\ WKH &LW\ +DOO RI &XULWLED IURP &DVH 6DPEDTXL 2Q 2FWREHU D JURXS RI SHRSOH ZHUH YLROHQWO\ HYLFWHG GXULQJ WKH HDUO\ PRUQLQJ IURP D UHJLRQ RI ODQG NQRZQ DV µ6DPEDTXL¶ E\ WKH 0XQLFLSDO *XDUG RI &XULWLED 7KH *XDUGV GHVWUR\HG KXWV EXLOW WR VKHOWHU SHRSOH DQG OLW D ERQ¿UH LQWR ZKLFK WKH\ WKUHZ XWHQVLOV PDWWUHVVHV DQG SHUVRQDO REMHFWV RI WKH HYLFWHHV HYHQ D VPDOO FDW EHORQJLQJ WR DQ ROG ODG\ 7KH 0XQLFLSDO *XDUGV ZKR FDUULHG ZHDSRQV WKURXJKRXW WKH LOOHJDO H[HFXWLRQ RI WKH HYLFWLRQ DVVDXOWHG PRUH WKDQ ¿YH SHRSOH 7KH DFWLRQV RI WKH 0XQLFLSDO *XDUGV RI &XULWLED ZHUH XQDXWKRULVHG DV WKH RI¿FLDOV ZHUH QRW LQ SRVVHVVLRQ RI DQ\ MXGLFLDO PDQGDWH DXWKRUL]LQJ WKH HYLFWLRQ DQG QRQH RI WKH *XDUGV FDUULHG DQ\ W\SH RI LGHQWL¿FDWLRQ 7KH HYLFWHG IDPLOLHV ZHUH SURYLVLRQDOO\ VKHOWHUHG LQ D /DERXU 8QLRQ EXLOGLQJ LQ WKH FHQWUH RI WKH FLW\ 7KH HYLFWLRQ RFFXUUHG GHVSLWH WKH DJUHHPHQW VLJQHG LQ EHWZHHQ WKH &LW\ +DOO DQG WKH 6WDWH *RYHUQPHQW WR XUEDQL]H WKH DUHD DQG EXLOG KRXVLQJ XQLWV LQ WKH DOORWPHQW RZQHG E\ &2+$% &XULWLED 7KHVH KRXVLQJ XQLWV ZHUH LQWHQGHG WR EHQH¿W IDPLOLHV RFFXS\LQJ DQ XQXVHG %DQHVWDGR EXLOGLQJ LQ DGGLWLRQ WR IDPLOLHV ZKR KDG WR EH UHVHWWOHG IURP WKH HGJHV RI 5LYHU ,JXDoX 7KH UHVLGHQWV PRWLYDWHG IRU WKH FRQWLQXDWLRQ RI WKH XUEDQ KRXVLQJ SURJUDPPH DQG DOVR IRU WKH LVVXLQJ RI ODQG WLWOHV WR WKH DIIHFWHG IDPLOLHV 7KLV PRWLYDWLRQ ZDV EDVHG RQ WKH OHJDO FRQFHVVLRQ RI WKH ULJKW RI XVDJH DQG WKH VSHFLDO FRQFHVVLRQ RI XVDJH IRU KRXVLQJ SXUSRVHV RU WKH SXUFKDVH RI ORWV LQ DFFRUGDQFH ZLWK WKH VRFLR HFRQRPLF VWDWXV RI WKH IDPLOLHV 7KH IDPLOLHV DOVR UHTXHVWHG WKDW WKH DUHD RI 6DPEDTXL EH GHFODUHG D 6SHFLDO =RQH RI 6RFLDO ,QWHUHVW
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
&DVH ± 9LOD /HRQLFH $ VHWWOHPHQW RI IDPLOLHV ZDV YLROHQWO\ HYLFWHG LQ WKH PLGGOH RI 0D\ IURP ODQG RQ WKH ERUGHU EHWZHHQ &XULWLED DQG $OPLUDQWH 7DPDQGDUp LQ WKH UHJLRQ NQRZQ DV 9LOD /HRQLFH LQ WKH QHLJKERUKRRG RI &DFKRHLUD 7KH LQLWLDO HYLFWLRQ ZDV FDUULHG RXW E\ WKH 0LOLWDU\ 3ROLFH )RUFH ZKR DOORZHG WKH IDPLOLHV PLQXWHV WR OHDYH WKHLU KXWV WKHQ EXUQW WKHVH GRZQ ZLWK DOO SHUVRQDO EHORQJLQJV VWLOO LQVLGH 7KH UHVLGHQWV ORVW WKH YHU\ IHZ SRVVHVVLRQV WKH\ KDG LQFOXGLQJ EHGV PDWWUHVVHV EODQNHWV FORWKHV DQG IRRG :LWK QRZKHUH WR JR PRVW RI WKH IDPLOLHV VSHQW WKH QLJKW RQ WKH VLGHZDON RI 'DYLG %RG]LDFN 6WUHHW $IWHU WKUHH GD\V WKH 0XQLFLSDO *XDUG YLROHQWO\ H[SHOOHG WKH IDPLOLHV RII WKH VWUHHW DQG FRQ¿VFDWHG WKHLU UHPDLQLQJ SRVVHVVLRQV $ QXPEHU RI WKH IDPLOLHV FXUUHQWO\ OLYH ZLWK DQRWKHU KXQGUHG SHRSOH LQ D ODUJH KXW FROOHFWLYHO\ UHQWHG E\ WKH 1DWLRQDO 0RYHPHQW RQ WKH 6WUXJJOH IRU +RXVLQJ 01/0 2WKHU JURXSV UHWXUQHG WR KRXVHV EHORQJLQJ WR UHODWLYHV RU PRYHG HOVHZKHUH &DVH 9LOD 6mR %UD] 2Q 0D\ WKH 0XQLFLSDO *XDUG RI &XULWLED IRUFLEO\ HYLFWHG IDPLOLHV IURP 9LOD 6mR %UD] LQ WKH ZHVW RI &XULWLED 0RUH WKDQ PHQ VXUURXQGHG WKH DUHD DW K DQG DW K HQWHUHG HDFK KRXVH DQG JDYH WKH RFFXSDQWV WZR KRXUV LQ ZKLFK WR JDWKHU WKHLU SRVVHVVLRQV DQG OHDYH $W K WKH KRXVHV ZHUH GHPROLVKHG DQG SHRSOH¶V EHORQJLQJV ZHUH KDXOHG DZD\ LQ WUXFNV 0DQ\ IDPLOLHV ZHUH WDNHQ WR WKH 6mR -RmR %DWLVWD +RVWHO ZKHUH WKH\ ZHUH DOORZHG WR VWD\ IRU WKUHH GD\V 6RPH RI WKH IDPLOLHV VSHQW WKH ¿UVW QLJKW VOHHSLQJ RQ WKH VWUHHW 1R UHVHWWOHPHQW SODQ ZDV SUHVHQWHG WR WKH IDPLOLHV DQG VHYHUDO SHRSOH PRYHG WR DQ DUHD FDOOHG &DPSR 0DJUR ORFDWHG LQ WKH PHWURSROLWDQ UHJLRQ RI &XULWLED $ -XGJH IURP WKH D 9DUD GD )D]HQGD 3~EOLFD DXWKRUL]HG WKH 0XQLFLSDO *XDUG WR FDUU\ RXW WKH RSHUDWLRQ DV WKH SXEOLF IRUFH UHVSRQVLEOH IRU IXO¿OOLQJ WKH HYLFWLRQ RUGHU &DVH 9LOD ,OKD GR 0HO ,Q 6HSWHPEHU IDPLOLHV ZHUH HYLFWHG IURP D SULYDWH SURSHUW\ µ9LOD ,OKD GR 0HO¶ DQG WUDQVIHUUHG WR DQ XUEDQ DUHD LQ WKH FLW\ RI &RQWHQGD LQ WKH PHWURSROLWDQ UHJLRQ RI WKH FDSLWDO 9LOD ,OKD GR 0HO ZDV RQH RI WKH VHWWOHPHQWV LQ WKH DUHD FDOOHG %ROVmR 9LOD $XGL D ODUJH JURXS RI VHWWOHPHQWV ORFDWHG RQ WKH ERUGHU RI &XULWLED ZLWK WKH 0XQLFLSDOLW\ RI 6mR -RVp GRV 3LQKDLV 2Q 6HSWHPEHU DSSUR[LPDWHO\ RI¿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
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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mR 6DEDUi %ROVmR 6DEDUi LV FRPSRVHG RI HLJKW VOXPV LQ ZKLFK IDPLOLHV UHVLGH LQ D SULYDWH DUHD 7KH 'HYHORSPHQW &RPSDQ\ RI &XULWLED VLJQHG DJUHHPHQWV IRU WKH SD\PHQW RI RFFXSDWLRQ IHHV IRU WKH XVH RI WKLV ODQG ZLWK VHYHUDO IDPLOLHV IURP WR 'XH WR ODFN RI SD\PHQWV WKH &RPSDQ\ ¿OHG IRU DQ HYLFWLRQ SURFHVV DJDLQVW VHYHUDO IDPLOLHV $ SXEOLF FLYLO SURFHVV ZDV ¿OHG DJDLQVW WKH PXQLFLSDOLW\ E\ 0V $QD %UDQGmR WKH SXEOLF SURVHFXWRU ZLWK WKH REMHFWLYH RI VXVSHQGLQJ WKH FKDUJH RI RFFXSDWLRQ IHHV E\ WKH PXQLFLSDOLW\ RQFH WKH DUHD ZDV QRW RZQHG E\ WKH PXQLFLSDOLW\ &DVH ± 9LOD 3OXPD -G (VSHUDQoD 9LOD 3OXPD -G (VSHUDQoD LV D SULYDWH DUHD RI ODQG ZKLFK ZDV RFFXSLHG LQ WKH V ,Q WKH RZQHU RI WKH DUHD SURSRVHG DQ HYLFWLRQ SURFHVV DW WKH D 9DUD 'D )D]HQGD 3~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¿OHG D SHWLWLRQ DJDLQVW WKH PXQLFLSDOLW\ EHIRUH WKH 3XEOLF 0LQLVWU\ &DVH ± &DPSR 0DJUR ,Q &DPSR 0DJUR DQ DUHD ORFDWHG DW WKH ERUGHU ZLWK &XULWLED IDPLOLHV RI ZRUNHUV VXIIHU XQGHU FRQVWDQW WKUHDWV IURP EURNHUV ZKR LQ DGGLWLRQ WR LOOHJDOO\ VHOOLQJ DOORWPHQWV ZLWK QR LQIUDVWUXFWXUH DOVR WKUHDWHQ IDPLOLHV ZKR VHHN OHJDO DVVLVWDQFH 7KH EURNHU KDG DQ HYLFWLRQ RUGHU LVVXHG DJDLQVW WKH IDPLOLHV ZKR KDYH GHPDQGHG WKH LQWHUYHQWLRQ RI WKH &LW\ +DOO WR PHGLDWH WKH FRQÃ&#x20AC;LFW DQG KDOW WKH HYLFWLRQ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
&DVH ± &DLXi 3HGUR 0DFKDGR 9LWyULD $SSUR[LPDWHO\ IDPLOLHV KDYH UHVLGHG LQ WKH DUHD RI &DLXi 3HGUR 0DFKDGR 9LWyULD IRU WZR \HDUV XQGHU WKH FRQVWDQW WKUHDW RI EHLQJ HYLFWHG 7KH\ KDYH DOVR OREELHG IRU WKH LQWHUYHQWLRQ RI WKH &LW\ +DOO WR PHGLDWH WKH FRQÃ&#x20AC;LFW DQG KDOW WKH HYLFWLRQ
0LVVLRQ 2EMHFWLYHV x 9HULI\LQJ VLWXDWLRQV RI YLRODWLRQ RI WKH ULJKW RI DGHTXDWH KRXVLQJ DQG PRQLWRULQJ WKH SUHVHQW VWDWXV RI KRXVLQJ ULJKWV ZLWK D SDUWLFXODU IRFXV RQ WKH PDWWHU RI VHFXULW\ RI WHQXUH RI ORZ LQFRPH FRPPXQLWLHV x 2IIHULQJ H[SHULHQFH DQG H[SHUWLVH IURP WKH $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV WR JRYHUQPHQWV VRFLDO PRYHPHQWV DQG QRQ JRYHUQPHQWDO RUJDQLVDWLRQV UHJDUGLQJ WKH DSSOLFDWLRQ RI WKH LQWHUQDWLRQDO ODZ RQ KXPDQ ULJKWV UHODWHG WR WKH SURPRWLRQ RI KRXVLQJ ULJKWV DQG SURWHFWLRQ DJDLQVW IRUFHG HYLFWLRQV x 2IIHULQJ WKH RSSRUWXQLW\ WR H[FKDQJH LQWHUQDWLRQDO H[SHULHQFHV RI JRRG SUDFWLFHV LPSOHPHQWHG WR SUHYHQW DQG KDOW IRUFHG HYLFWLRQV LQ RWKHU FRXQWULHV x 3URSRVLQJ D ORFDO SODQ RI DFWLRQ WR SUHYHQW WKH RFFXUUHQFH RI SODQQHG HYLFWLRQV DQG SURSRVH VROXWLRQV WR WKH DIIHFWHG FRPPXQLWLHV x (VWDEOLVKLQJ D FDOHQGDU WR PRQLWRU WKH SURSRVHG SODQ RI DFWLRQ DQG FRQVWLWXWH D ORFDO FRPPLVVLRQ WR IROORZ WKH FDVH
$FWLYLWLHV GXULQJ WKH PLVVLRQ 7KH IROORZLQJ DFWLYLWLHV ZHUH FRPSOHWHG GXULQJ WKH PLVVLRQ x 0HHWLQJ ZLWK UHSUHVHQWDWLYHV RI WKH DIIHFWHG FRPPXQLWLHV ZKR KDG DOUHDG\ UHSRUWHG WKHLU FDVHV WR $*)( DQG DOVR ZLWK UHSUHVHQWDWLYHV RI QHZ FRPPXQLWLHV LQWHUHVWHG LQ SUHVHQWLQJ WKHLU VWDWHPHQWV ± )HEUXDU\ x 3UHVV &RQIHUHQFH WR LQIRUP WKH PHGLD DERXW WKH PLVVLRQ DQG LWV REMHFWLYHV ± )HEUXDU\ x 3XEOLF +HDULQJ RQ )HEUXDU\ ZLWK WKH SDUWLFLSDWLRQ RI VHYHUDO VRFLDO DFWRUV LQYROYHG LQ WKH FDVHV ZKLFK UHSRUWHG LQ WKLV GRFXPHQW $*)( PHPEHUV 0XQLFLSDO 6WDWH DQG )HGHUDO JRYHUQPHQWV UHSUHVHQWDWLYHV IURP WKH DIIHFWHG FRPPXQLWLHV SRSXODU PRYHPHQWV LQ WKH VWUXJJOH IRU KRXVLQJ QRQ JRYHUQPHQWDO RUJDQLVDWLRQV XQLYHUVLWLHV SURIHVVLRQDOV VWXGHQWV DURXQG DWWHQGDQWV +RXVH RI 5HSUHVHQWDWLYHV IURP WKH 6WDWH RI 3DUDQi
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3KRWR /HDQGUR *RUVGRUI
$*)( 3XEOLF +HDULQJ &XULWLED )HEUXDU\
&RPPXQLWLHV RUJDQLVDWLRQV DQG JRYHUQPHQWDO ERGLHV UHSUHVHQWHG DW WKH SXEOLF KHDULQJ &RPPXQLWLHV x x x x x x x x x x x
-G (VSHUDQoD 9LOD 3OXPD &DLXi 3HGUR 0DFKDGR H 9LWyULD $VVRFLDomR GH 0RUDGRUHV GDV ,OKDV ± 5LR ,JXDoX $VVRFLDomR GH 0RUDGRUHV GH 6DPEDTXL )UHQWH 3RSXODU GH /XWD SHOD 5HIRUPD 8UEDQD $VVHVVRULD GD %DQFDGD GR 37 1D $/35 01/0 2FXSDomR $%9 ± &DPSR 0DJUR 9LOD 6DEDUi $VVRFLDomR GH 0RUDGRUHV GDV 9LODV &RORPER , H ,, -G ,QGHSHQGrQFLD &RQWHQGD ,OKD GR 0HO
1*2V x 7HUUD GH 'LUHLWRV x &2+5( x 5HODWRULD 1DFLRQDO GR 'LUHLWR j 0RUDGLD $GHTXDGD ,QVWLWXWR 32/,6 *RYHUQPHQW %RGLHV x 0LQLVWpULR GDV &LGDGHV x &2+$3$5 ± &RPSDQKLD GH +DELWDomR GR 3DUDQi x ,QVWLWXWR GH 3HVTXLVD H 3ODQHMDPHQWR 8UEDQR GH &XULWLED ± ,338& UHSUHVHQWDQGR R ([PR 6U 3UHIHLWR 0XQLFLSDO %HWR 5LFKD x 6HFUHWDULD 0XQLFLSDO GH 8UEDQLVPR
x x x x x x
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
6HFUHWDULD 0XQLFLSDO GH 'HIHVD 6RFLDO &2+$% &XULWLED 6HFUHWDULD ([WUDRUGLQiULD GH $VVXQWRV 0HWURSROLWDQRV &RPSDQKLD GH 'HVHQYROYLPHQWR GH &XULWLED 'HSXWDGRV (VWDGXDLV 9HUHDGRUHV
2WKHUV x 8QLYHUVLGDGH )HGHUDO GR 3DUDQi
(YLFWLRQ +LJKOLJKWHG DW WKH 3XEOLF +HDULQJ 3DUTXH ,QGXVWULDO ± *RLkQLD 7KH DWWRUQH\ UHSUHVHQWLQJ WKH IDPLOLHV ZKR ZHUH YLROHQWO\ HYLFWHG RQ )HEUXDU\ LQ *RLkQLD 6WDWH RI *RLiV DWWHQGHG WKH SXEOLF KHDULQJ LQ &XULWLED 7KH DWWRUQH\ UHSUHVHQWHG URRÃ&#x20AC;HVV IDPLOLHV ZKR VLQFH 0D\ KDG RFFXSLHG WKH DUHD RI 3DUTXH 2HVWH ,QGXVWULDO ,QGXVWULDO :HVW 3DUN LQ *RLkQLD 6WDWH RI *RLi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iV DQG WKH &LW\ +DOO RI *RLkQLD LQGLFDWHG WKH SRVVLELOLW\ RI UHVHWWOLQJ WKH HYLFWHG IDPLOLHV LQ WKH DUHD $ WUDJHG\ KDG WR WDNH SODFH EHIRUH WKH SOLJKW RI WKHVH IDPLOLHV LQ 2FFXSDWLRQ µ6RQKR 5HDO¶ µ5HDO 'UHDP¶ FRXOG UHDFK WKH KHDGOLQHV RI WKH QDWLRQDO SUHVV ,W ZDV RQO\ DIWHU VXFK SXEOLFLW\ WKDW WKH H[HFXWLYH SRZHU DQQRXQFHG DFWLRQ WR JXDUDQWHH KRXVLQJ ULJKWV WR WKHVH IDPLOLHV D FRQVWLWXWLRQDO ULJKW WR ZKLFK HYHU\ %UD]LOLDQ LV HQWLWOHG $OO WKRVH SUHVHQW DW WKH SXEOLF KHDULQJ FRPPLWWHG WKHLU VXSSRUW DQG VROLGDULW\ WR WKH IDPLOLHV IURP *RLkQLD DQG WKH DWWRUQH\ FRPPLWWHG KLPVHOI WR VHQGLQJ GHWDLOV RI WKH FDVH WR $*)( DQG WR UHTXHVW D PLVVLRQ LQ *RLkQLD
5HVXOWV RI WKH 0LVVLRQ 7KH VWDWHPHQWV IURP FRPPXQLWLHV DQG IURP WKH 01/0 1DWLRQDO 0RYHPHQW RQ WKH 6WUXJJOH IRU +RXVLQJ LQ UHODWLRQ WR WKH HYLFWLRQV WKDW WRRN SODFH IURP UHÃ&#x20AC;HFW WKH QHHG IRU WKH 0XQLFLSDOLW\ RI &XULWLED WR LPSOHPHQW WKH ODQG RZQHUVKLS UHJXODUL]DWLRQ WROOV SURYLGHG IRU E\ WKH &LW\ 6WDWXWH DQG WKH 0DVWHU 3ODQ LQ RUGHU WR JXDUDQWHH WKH ULJKW WR WKH FLW\ IRU WKH ORZ LQFRPH SRSXODWLRQ 7KH FRPPXQLWLHV DQG 01/0 LGHQWL¿HG WKH IROORZLQJ LVVXHV DV LOOXVWUDWHG E\ WKH UHSRUWHG IRUFHG HYLFWLRQV QDPHO\ WKH ODFN RI PXQLFLSDO SROLF\ RQ WKH IROORZLQJ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
x 6RFLDO LQWHUHVW KRXVLQJ ZKLFK FRQVLGHUV WKH DVSHFWV RI ODQG RZQHUVKLS UHJXODULVDWLRQ RI SXEOLF DQG SULYDWH DUHDV x 7KH SURGXFWLRQ RI DOORWPHQWV DQG KRXVLQJ XQLWV x 7KH DGHTXDWH UHVHWWOHPHQW RI SRSXODWLRQV ZKLFK OLYH LQ DUHDV RI ULVN x $FFHVV WR EDVLF VDQLWDWLRQ DQG SXEOLF WUDQVSRUW x 7KH SURPRWLRQ RI SDUWLFLSDWLRQ x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¶V UHIXVDO WR VLJQ WKH SURSRVHG µ7HUPV RI $JUHHPHQW EHWZHHQ $*)( 81 +$%,7$7 DQG WKH 0XQLFLSDOLW\ RI &XULWLED %UD]LO ± )RU D &LW\ )UHH RI (YLFWLRQV¶ FRS\ DWWDFKHG DV $QQH[ $OO WKRVH DWWHQGLQJ WKH SXEOLF KHDULQJ RQ )HEUXDU\ DJUHHG WR WKH HVWDEOLVKPHQW RI D ZRUNLQJ JURXS HTXDOO\ UHSUHVHQWHG E\ FLYLO VRFLHW\ DQG JRYHUQPHQW ZLWK WKH REMHFWLYH RI SURSRVLQJ PHDVXUHV WR SUHYHQW IRUFHG HYLFWLRQV DQG WR SURPRWH VROXWLRQV WR WKH FDVHV SUHVHQWHG DW WKH SXEOLF KHDULQJ E\ WKH DIIHFWHG FRPPXQLWLHV 7KH ZRUNLQJ JURXS ZLOO DOVR DLP WR FRQWULEXWH WR WKH IROORZLQJ x 6XJJHVWLRQV WR LPSURYH SROLFLHV DQG DFWLRQV WR SURPRWH SURWHFW DQG GHIHQG WKH KXPDQ ULJKW WR DGHTXDWH KRXVLQJ DQG WKH IXO¿OPHQW RI WKH ULJKW WR WKH FLW\ x ,QGLFDWH OHJDO XUEDQ DQG VRFLDO DOWHUQDWLYHV WR WKH ODQG RZQHUVKLS UHJXODUL]DWLRQ DQG XUEDQL]DWLRQ RI SXEOLF DQG SULYDWH DUHDV RFFXSLHG E\ ORZ LQFRPH SRSXODWLRQV EDVHG RQ WKH &LW\ 6WDWXWH DQG WKH 0DVWHU 3ODQ LQ D PHGLDWLRQ SURFHVV 7KH ZRUNLQJ JURXS WR EH LPPHGLDWHO\ FRQVWLWXWHG ZLOO EH FRPSRVHG RI UHSUHVHQWDWLYHV IURP WKH IROORZLQJ ERGLHV DQG RUJDQLVDWLRQV x $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)( 81 +$%,7$7 x 0XQLFLSDOLW\ RI &XULWLED x &XULWLED ,QVWLWXWH RI 8UEDQ 5HVHDUFK DQG 3ODQQLQJ ,338& x 0XQLFLSDO 6HFUHWDU\ RI 8UEDQL]DWLRQ x &XULWLED 3RSXODU +DELWDWLRQ &RPSDQ\ &2+$% x 0XQLFLSDO 6HFUHWDU\ RI 'HIHQFH x 0LQLVWU\ RI &LWLHV BBBBBBBBBBBB
)RU IXUWKHU LQIRUPDWLRQ VHH KWWS ZZZ EHVWSUDFWLFHV RUJ GDWDEDVH ESBGLVSOD\BEHVWBSUDFWLFH SKS"EHVWBSUDFWLFHBLG KWWS ZZZ EHVWSUDFWLFHV RUJ GDWDEDVH ESBGLVSOD\BEHVWBSUDFWLFH SKS"EHVWBSUDFWLFHBLG KWWS ZZZ EHVWSUDFWLFHV RUJ GDWDEDVH ESBGLVSOD\BEHVWBSUDFWLFH SKS"EHVWBSUDFWLFHBLG
x x x x x x x x x x x x x
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
6SHFLDO 6HFUHWDU\ RI 0HWURSROLWDQ $IIDLUV &XULWLED 'HYHORSPHQW &RPSDQ\ &'& 3DUDQi +DELWDWLRQ &RPSDQ\ &2+$3$5 1DWLRQDO 5DSSRXUWHXU RQ WKH +XPDQ 5LJKW WR $GHTXDWH +RXVLQJ &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( 3DUDQi 2EVHUYDWRU\ RQ 3XEOLF 3ROLFLHV 7HUUD GH 'LUHLWRV 1DWLRQDO 0RYHPHQW RQ WKH 6WUXJJOH IRU +RXVLQJ &HQWUH IRU 3RSXODU 0RYHPHQWV 0XQLFLSDO &KDPEHU 8UEDQL]DWLRQ &RPPLVVLRQ 3DUDQi )HGHUDO 8QLYHUVLW\ 6WDWH 3XEOLF 0LQLVWU\ 5HSUHVHQWDWLYHV IURP WKH FRPPXQLWLHV WKDW DWWHQGHG WKH SXEOLF KHDULQJ
7KH ¿UVW UHSRUW RQ WKH ZRUN JURXS¶V DFWLYLWLHV ZLOO EH SUHVHQWHG DIWHU WZR PRQWKV
0DWWHUV LGHQWL¿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³7HUPV RI $JUHHPHQW EHWZHHQ $*)( 81 +$%,7$7 DQG WKH 0XQLFLSDOLW\ RI &XULWLED %UD]LO ± )RU D &LW\ )UHH RI (YLFWLRQV´ VKRXOG KDYH EHHQ SUHVHQWHG SULRU WR WKH SXEOLF KHDULQJ LQ RUGHU WR SURYLGH VXI¿FLHQW WLPH IRU WKH VHFWRUV JRYHUQPHQWDO ERGLHV FRPPXQLWLHV WR UHÃ&#x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
)ROORZ XS $FWLYLWLHV 7KH 0XQLFLSDOLW\ RI &XULWLED KDV XQGHUWDNHQ ZLWKLQ GD\V RI WKH GDWH RI WKH SXEOLF KHDULQJ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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
5HFRPPHQGDWLRQV 7KH $*)( UHFRPPHQGV WKDW WKH JURXS WR EH FRQVWLWXWHG EH HTXDOO\ UHSUHVHQWDWLYH RI DOO VRFLDO DFWRUV DQG LQYROYHG VHFWRUV LQ WKH LVVXH RI KRXVLQJ SROLFLHV DQG HYLFWLRQV 7KH REMHFWLYHV RI WKLV JURXS ZLOO EH DLPHG DW SURSRVLQJ DOWHUQDWLYHV WR WKH UHSRUWHG FDVHV DQG WKH SUHYHQWLRQ RI DQ\ IXWXUH HYLFWLRQV 7R WKLV HQG LW LV UHFRPPHQGHG WKDW WKH JURXS GLVFXVV WKH IROORZLQJ LVVXHV x 5HVHDUFK RQ WKH OHJDO HFRQRPLF DQG VRFLDO VLWXDWLRQ RI WKH ORZ LQFRPH VHWWOHPHQWV SUHVHQWO\ IDFLQJ ODQG RZQHUVKLS LUUHJXODULWLHV x 0HGLDWLRQ RI WKH HYLFWLRQV WKDW DUH DERXW WR EH LPSOHPHQWHG E\ OHJDO SURFHVVHV DQG WKH UROH RI WKH 0XQLFLSDO *XDUG x 'LDORJXH DPRQJ WKH PXQLFLSDO VWDWH DQG IHGHUDO ERGLHV H[HFXWLYH OHJLVODWLYH DQG MXGLFLDU\ FLYLO VRFLHW\ DQG YXOQHUDEOH FRPPXQLWLHV DLPLQJ DW WKH SURSRVDO RI SROLFLHV DQG DFWLRQV WR SURPRWH SURWHFW DQG GHIHQG WKH KXPDQ ULJKW WR DGHTXDWH KRXVLQJ DQG WKH IXO¿OPHQW RI WKH ULJKW WR WKH FLW\ x /HJDO XUEDQ DQG VRFLDO VROXWLRQV WR ODQG RZQHUVKLS UHJXODUL]DWLRQ DQG WR WKH XUEDQL]DWLRQ RI SXEOLF DUHDV RFFXSLHG E\ ORZ LQFRPH SRSXODWLRQV EDVHG RQ WKH &LW\ 6WDWXWH DQG WKH 0DVWHU 3ODQ VHHNLQJ SHUPDQHQW VHWWOHPHQW RI IDPLOLHV LQ KRXVLQJ DUHDV ZKLFK GR QRW SUHVHQW DQ\ ULVNV WR WKH KHDOWK DQG WR OLYHV RI WKHVH IDPLOLHV x 'HYHORSPHQW RI SURJUDPPHV WR JHQHUDWH LQFRPH DQG WR HQDEOH MRE RSSRUWXQLWLHV WR SURYLGH KHDOWK DQG HGXFDWLRQ DQG WR LPSOHPHQW XUEDQ LQIUDVWUXFWXUH DLPHG DW LPSURYLQJ WKH FRQGLWLRQV RI OLIH RI WKH UHVHWWOHG RU HYLFWHG IDPLOLHV x $FWLYLWLHV RI FDSDFLW\ EXLOGLQJ DQG LQIRUPDWLRQ GLVVHPLQDWLRQ WR PXQLFLSDO VWDWH DQG IHGHUDO ERGLHV H[HFXWLYH OHJLVODWLYH DQG MXGLFLDU\ FLYLO VRFLHW\ DQG YXOQHUDEOH FRPPXQLWLHV RQ KXPDQ ULJKWV HVSHFLDOO\ WKH ULJKW WR WKH FLW\ DQG WKH ULJKW WR DGHTXDWH KRXVLQJ x 5HJXODWLQJ WKH WRROV SURYLGHG IRU WKH 0DVWHU 3ODQ LQ RUGHU WR LPSOHPHQW WKH VSHFLDO FRQFHVVLRQ RI XVDJH IRU KRXVLQJ SXUSRVHV FRQFHVVLRQ RI WKH ULJKW RI XVDJH WKH ULJKW RI SUH HPSWLRQ VXUIDFH ULJKWV VSHFLDO ]RQHV RI VRFLDO LQWHUHVW HYDOXDWLRQ DQG FKDUDFWHUL]DWLRQ RI HPSW\ XUEDQ DUHDV DQG GHPRFUDWLF PDQDJHPHQW HVSHFLDOO\ RI WKH FRQVWLWXWLRQ RI WKH &ROOHJLDWH %RG\ PHQWLRQHG LQ DUWLFOH RI WKH 0DVWHU 3ODQ WR EH HOHFWHG LQ WKH QH[W 0XQLFLSDOLW\ RI &XULWLED &LW\ &RQIHUHQFH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
x /HJDO DQG DGPLQLVWUDWLYH PHDVXUHV DLPHG DW KDOWLQJ WKH DFWLYLWLHV RI LUUHJXODU DQG FODQGHVWLQH EURNHUV DQG LQ WKH VHDUFK RI VROXWLRQV WR WKH ODQG RZQHUVKLS UHJXODUL]DWLRQ DQG WKH SURWHFWLRQ RI ORZ LQFRPH SXUFKDVHUV x 3URFHVV RI WKH &LW\ &RQIHUHQFH WKDW ZLOO EH LPSOHPHQWHG E\ WKH 0LQLVWU\ RI WKH &LWLHV LQ 7KH $*)( DOVR UHFRPPHQGV WKDW WKH SURSRVHG GRFXPHQW µ7HUPV RI $JUHHPHQW EHWZHHQ $*)( 81 +$%,7$7 DQG WKH 0XQLFLSDOLW\ RI &XULWLED %UD]LO ± )RU D &LW\ )UHH RI (YLFWLRQV¶ VKRXOG EH GLVFXVVHG LQ WKH DERYH PHQWLRQHG ZRUNJURXS ZLWK WKH H[SHFWDWLRQ RI KDYLQJ WKH 7HUPV RI $JUHHPHQW VLJQHG LQ WKH QHDU IXWXUH E\ WKH UHOHYDQW SDUWLHV
3KRWR <YHV &DEDQQHV
$IWHU UHVLVWLQJ D HYLFWLRQ RQ 2FWREHU DW 6DPEDTXL &XULWLED VRPH UHVLGHQWV ZHUH VHYHUHO\ EHDWHQ DQG KDG WR EH DGPLWWHG WR KRVSLWDO 6LWXDWLRQV OLNH WKLV VKRXOG QHYHU EH DOORZHG WR KDSSHQ DJDLQ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
0LVVLRQ WR 5RPH ,WDO\ ± )HEUXDU\ ,QWURGXFWLRQ 7KH SULYDWH OHDVH VHFWRU DFFRXQWV IRU WKH PDMRULW\ RI HYLFWLRQ FDVHV LQ ,WDO\ 2I WKH IDPLOLHV LQ SULYDWH OHDVH DUUDQJHPHQWV HYLFWLRQ KDV DIIHFWHG IDPLOLHV EHWZHHQ WKH \HDUV DQG HTXLYDOHQW WR RI WKH IDPLOLHV LQ OHDVH $ WRWDO RI IDPLOLHV RI WKH WRWDO KDYH H[SHULHQFHG WKH RUGHDO RI DQ HYLFWLRQ HQIRUFHG E\ WKH SROLFH 6HH WDEOH EHORZ 7KHVH HYLFWLRQ VWDWLVWLFV DUH EDVHG RQ GDWD VXSSOLHG E\ WKH ,WDOLDQ 0LQLVWHU RI ,QWHUQDO $IIDLUV DQG RQO\ UHÃ&#x20AC;HFW GDWD RQ OHJDO SURFHGXUHV XS WR 7KHUH LV QR GDWD IRU WKH \HDUV DQG +RZHYHU HVWLPDWHV DUH WKDW GXULQJ WKLV SHULRG PRUH WKDQ QHZ HYLFWLRQV KDYH EHHQ LQLWLDWHG LQ DGGLWLRQ WR WKH QXPHURXV HYLFWLRQV FDUULHG RXW LOOHJDOO\ RU RXW RI WKH FRXUWV¶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¿FLDO VWDWLVWLFV x (YLFWLRQV IURP KRPHV VROG LQ DXFWLRQV GXH WR PRUWJDJH GHIDXOWV GHEWV DQG EDQNUXSWF\ 7KLV W\SH RI HYLFWLRQ LV LQFUHDVLQJ LQ ,WDO\ GXH WR HFRQRPLF SUHVVXUHV DQG XQHPSOR\PHQW 7KH\ DIIHFW DSSUR[LPDWHO\ IDPLOLHV QDWLRQDOO\ 2I WKHVH DERXW VXFFHHG LQ UHSXUFKDVLQJ WKHLU KRPHV ZKLOH WKH UHPDLQLQJ ORVH WKHLU KRPHV EHFRPH WHQDQWV RI WKH EDQNV RU DUH HYLFWHG x (YLFWLRQV RI WKH KRPHOHVV LPPLJUDQWV QRPDGV RU WKH SRRU IURP LQIRUPDOO\ RFFXSLHG UHDO HVWDWH 7KHUH DUH VLWXDWLRQV LQ ZKLFK WKH HYLFWLRQV RI IRUHLJQHUV KDYH UHVXOWHG LQ WKH H[WUHPH FRQVHTXHQFH RI IRUFHG GHSRUWDWLRQ WR WKHLU FRXQWULHV RI RULJLQ IRU H[DPSOH WKH HYLFWLRQ RI WKH 9LD $GGD LQ 0LODQ 7KH ULVN RI LOOHJDO RFFXSDWLRQ HYLFWLRQV FRQFHUQV WHQV RI WKRXVDQGV RI IDPLOLHV LQ 0LODQ DQ HVWLPDWHG SHRSOH LOOHJDOO\ RFFXS\ SXEOLF BBBBBBBBBBBB
7KLV LV D WUDQVODWHG H[WUDFW RI WKH UHSRUW RI WKH $*)( PLVVLRQ WHDP WKDW YLVLWHG 5RPH IURP )HEUXDU\ 7KH RULJLQDO UHSRUW ZDV GUDIWHG E\ &HVDUH 2WWROLQL ZLWK VHFWLRQV E\ -DFTXHOLQH /HDYLWW 7KH RWKHU WHDP PHPEHUV ZHUH %HUQDUG %LUVLQJHU DQG 2OLYLHU 9DOHQWLQ 6HH KWWS ZZZ XQLRQHLQTXLOLQL LW &DOFXODWLRQV &21$), $VVRFRQG RQ ,VWDW GDWD ³6WDWLVWLFKH JLXGL]LDULH FLYLOL´ 6HH KWWS ZZZ YLDDGGDQRQVLFDQFHOOD RUJ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
KRXVLQJ RI WKH WRWDO SXEOLF VKHOWHUV LQ 5RPH DQG LQ 1DSOHV ,Q DGGLWLRQ WR WKLV GXH WR WKHLU GHVSHUDWH QHHG IRU VKHOWHU SHRSOH LQIRUPDOO\ RFFXS\ DEDQGRQHG UHDO HVWDWH GHVLJQDWHG IRU RWKHU XVHV VXFK DV IDFWRULHV ,WDO\ (YLFWLRQV SURFHGXUHV LQ KRXVLQJ UHDO HVWDWH 7\SH RI SURFHGXUH
$QQXDO PHDQ
(YLFWLRQV FDUULHG RXW
(YLFWLRQV FDUULHG RXW YLD FRXUW RI¿FHU
$SSOLFDWLRQV WR HYLFW
%DFNJURXQG WR WKH VLWXDWLRQ LQ 5RPH 5RPH WKH FDSLWDO FLW\ RI ,WDO\ KDV D SRSXODWLRQ RI PRUH WKDQ SHUVRQV RI D SURYLQFLDO SRSXODWLRQ LQ H[FHVV RI SHRSOH %HWZHHQ DQG WKH SRSXODWLRQ RI WKH FLW\ GLPLQLVKHG E\ DURXQG LQKDELWDQWV SULPDULO\ GXH WR WKH LPSOHPHQWDWLRQ RI HYLFWLRQ SURFHGXUHV DQG D GUDPDWLF LQFUHDVH LQ WKH SULFH RI UHDO HVWDWH $FFRUGLQJ WR GDWD VXSSOLHG E\ WKH 0LQLVWU\ RI ,QWHULRU EHWZHHQ DQG WKH HYLFWLRQV ZHUH UHTXHVWHG LQ 5RPH GXULQJ WKLV SHULRG RI ZKLFK ZHUH H[HFXWHG ZLWK WKH DVVLVWDQFH RI WKH SROLFH *LYHQ WKH DVVHVVPHQW WKDW IDPLOLHV OLYH LQ 5RPH KDYH WKHUHIRUH VXIIHUHG IURP WKLV H[SHULHQFH ZKLOH RI IDPLOLHV KDYH EHHQ HYLFWHG E\ SXEOLF RUGHU 7KXV DSSUR[LPDWHO\ SHRSOH KDYH KDG WR GHIHQG WKHLU VHFXULW\ RI KRXVLQJ WHQXUH EHIRUH D WULEXQDO DQG DERXW KDYH VXIIHUHG HYLFWLRQ
BBBBBBBBBBBB
7KHVH DUH WKH ODWHVW RI¿FLDO GDWD 0DUFK KWWS SHUV PLQLQWHUQR LW GFGV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
5RPH $FWLRQV IRU HYLFWLRQ IURP UHVLGHQWLDO UHDO HVWDWH SURSHUW\ $FWLRQV LVVXHG
7RWDO
(YLFWLRQV FDUULHG RXW
1RW DYDLODEOH
(YLFWLRQV FDUULHG RXW YLD FRXUW RI¿FHU
GDWD IURP 3UHIHFWXUH
$SSOLFDWLRQV WR HYLFW
1RW DYDLODEOH
,Q RUGHU WR DGGUHVV WKH JURZLQJ KRXVLQJ QHHGV RI ORZHU LQFRPH WR SRRU SHRSOH LQ 5RPH WKH 5RPH 0XQLFLSDO $GPLQLVWUDWLRQ KDV SURYLGHG DSSUR[LPDWHO\ GZHOOLQJV RI ZKLFK DUH RQ DJUHHPHQW ZLWK SULYDWH RZQHUV 6LQFH WKLV LV LQVXI¿FLHQW LQ WHUPV RI WKH KRXVLQJ QHHGV WKH 0XQLFLSDO $GPLQLVWUDWLRQ KDV HVWLPDWHG WKDW PRUH GZHOOLQJV DUH QHFHVVDU\ PRVW RI ZKLFK VKRXOG EH SXEOLFO\ RZQHG 5HOHYDQW GDWD DV SURYLGHG E\ WKH 5RPH 0XQLFLSDO $GPLQLVWUDWLRQ x )DPLOLHV RQ ZDLWLQJ OLVW IRU ORZ LQFRPH KRXVLQJ x )DPLOLHV RQ ZDLWLQJ OLVW IRU UHQW DVVLVWDQFH IURP WKH 0XQLFLSDO DGPLQLVWUDWLRQ HOGHUO\ SHRSOH DQG GLVDEOHG PLJUDQWV x DURXQG PLJUDQWV SROLWLFDO UHIXJHHV VHHNHUV KRPHOHVV RU EDGO\ KRXVHG VTXDWWHUV RFFXSDQWV UHVLGLQJ XQGHU EULGJHV HWF SHRSOH x +RXVLQJ EHORQJLQJ WR WKH 0XQLFLSDO DGPLQLVWUDWLRQ LOOHJDOO\ RFFXSLHG
7KH $*)( ¿HOG PLVVLRQ WR 5RPH 0RWLYDWLRQ 7KH $*)( GHFLVLRQ WR XQGHUWDNH D ¿HOG PLVVLRQ WR 5RPH ZDV EDVHG RQ DQDO\VLV RI WKH IROORZLQJ GRFXPHQWV DQG DQ LQYLWDWLRQ IURP WKH 0XQLFLSDO $GPLQLVWUDWLRQ RI WKH &LW\ RI 5RPH DQG WKH 8QLRQH ,QTXLOLQL 7HQDQWV 8QLRQ WR YLVLW WKH FLW\ DQG PHHW VWDNHKROGHUV WR GLVFXVV WKH KLJK YROXPH RI XUEDQ HYLFWLRQV LQ WKH FDSLWDO FLW\ DQG UHODWHG WHQXUH ULJKWV LVVXHV &RS\ RI LQYLWDWLRQ DWWDFKHG DV $QQH[ x 'RVVLHU RQ (YLFWLRQ (PHUJHQF\ LQ ,WDO\ LQYROYLQJ RYHU IDPLOLHV SUHVHQWHG E\ WKH ,$, WR $*)( $XJXVW x 7KH GRVVLHU RQ WKH YLRODWLRQV RI KRXVLQJ ULJKWV SUHVHQWHG E\ WKH 8QLRQH ,QTXLOLQL ,$, DQG &2+5( 2FWREHU DW WKH UG 6HVVLRQ RI WKH 81 &RPPLWWHH RQ (FRQRPLF BBBBBBBBBB
7KHVH DUH WKH ODWHVW RI¿FLDO GDWD 0DUFK KWWS SHUV PLQLQWHUQR LW GFGV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
6RFLDO DQG &XOWXUDO 5LJKWV x 7KH UHFRPPHQGDWLRQV WR WKH ,WDOLDQ JRYHUQPHQW LVVXHG E\ WKH VDPH &RPPLWWHH 1RYHPEHU x 7KH LQIRUPDO PHHWLQJ RI WKH $*)( PHPEHUV GXULQJ WKH :RUOG 6RFLDO )RUXP 3RUWR $OHJUH DQG x $Q LQYLWDWLRQ E\ WKH 0XQLFLSDO $GPLQLVWUDWLRQ RI WKH &LW\ RI 5RPH DQG WKH 8QLRQH ,QTXLOLQL WR YLVLW WKH FLW\ DQG DWWHQG D VHULHV RI PHHWLQJV )HEUXDU\ &RPSRVLWLRQ RI 0LVVLRQ WHDP
1DPH
5HSUHVHQWLQJ
)XQFWLRQ
&HVDUH 2WWROLQL
$*)( ,$,
&R RUGLQDWRU RI PLVVLRQ
%HUQDUG %LUVLQJHU
0D\RU %RELJQ\ )UDQFH
([FKDQJHV RI H[SHULHQFHV ZLWK SDUWLFXODU IRFXV RQ IUHH HYLFWLRQ ]RQHV +RXVLQJ SXEOLF VHUYLFHV
2OLYLHU 9DOHQWLQ
([SHUW RQ KRXVLQJ SROLFLHV %RELJQ\ )UDQFH
([FKDQJHV RI H[SHULHQFHV ZLWK SDUWLFXODU IRFXV RQ IUHH HYLFWLRQ ]RQHV KRXVLQJ SXEOLF VHUYLFHV
-DFTXHOLQH /HDYLWW
+XDLURX &RPPLVVLRQ 86$
([FKDQJHV RI H[SHULHQFHV ZLWK SDUWLFXODU IRFXV RQ VHFXULW\ RI WHQXUH IRU ZRPHQ
2EMHFWLYHV RI WKH $*)( PLVVLRQ x 7R DVVHVV WKH VLWXDWLRQ LQ UHODWLRQ WR YLRODWLRQV RI KRXVLQJ ULJKWV ZLWK SDUWLFXODU UHIHUHQFH WR VHFXULW\ RI WHQXUH x 7R IRVWHU WKH LQWHUQDWLRQDO H[FKDQJH RI JRRG SUDFWLFHV IRU VHFXULW\ RI WHQXUH x 7R SURPRWH WKH GUDIW RI ORFDO QDWLRQDO DQG (XURSHDQ 3ODQV RI $FWLRQ IRU VHFXULW\ RI WHQXUH x 7R HVWDEOLVK DQ DJHQGD IRU WKH PRQLWRULQJ RI WKH 3ODQ RI $FWLRQ x 7R SUHSDUH WKH JURXQG IRU D PLVVLRQ RQ WKH VHFXULW\ RI WHQXUH DW D QDWLRQDO OHYHO LQ ,WDO\ $FWLYLWLHV GHYHORSHG E\ WKH PLVVLRQ 7KUHH W\SHV RI DFWLYLWLHV ZHUH XQGHUWDNHQ GXULQJ WKH PLVVLRQ QDPHO\ x 0HHWLQJV ZLWK RUJDQLVDWLRQV DQG LQVWLWXWLRQV x 9LVLWV WR FRPPXQLWLHV x 3UHVV FRQIHUHQFHV LQFOXGLQJ RQH WR SUHVHQW WKH PLVVLRQ DW WKH RXWVHW DQG DQRWKHU WR SXEOLFLVH WKH UHVXOWV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
0HHWLQJV ZLWK LQVWLWXWLRQV DQG RUJDQL]DWLRQV 0HPEHUV RI WKH PLVVLRQ KHOG PHHWLQJV ZLWK WKH IROORZLQJ VWDNHKROGHUV x x x x
7KH 0XQLFLSDO $GPLQLVWUDWLRQ RI WKH &LW\ RI 5RPH 7KH 3UHIHFWXUH RI 5RPH 7KH 'LVWULFWV PXQLFLSL RI 5RPH 7KH DVVRFLDWLRQV VXSSRUWLQJ WKH HYLFWHG DQG WKH KRPHOHVV IRU H[DPSOH 6 (JLGLR &DULWDV (PPDXV x 7KH FLYLO FRPPXQLW\ WUDGH DQG WHQDQWV¶ XQLRQV LQKDELWDQWV DVVRFLDWLRQV WKUHDWHQHG ZLWK HYLFWLRQ x 7KH +RXVLQJ RI¿FHV RI ,WDOLDQ 0XQLFLSDOLWLHV LQ DUHDV ZKHUH KRXVLQJ HPHUJHQFLHV RFFXU FR RUGLQDWHG E\ WKH $1&, 6XPPDU\ RI PHHWLQJ ZLWK NH\ ,QVWLWXWLRQV 7KH PDLQ PHHWLQJ ZDV ZLWK WKH 0XQLFLSDO $GPLQLVWUDWLRQ RI 5RPH ,Q GLVFXVVLRQV WKH 0XQLFLSDO UHSUHVHQWDWLYH FRQVLGHUHG WKDW WKH VLWXDWLRQ LQ 5RPH KDG ZRUVHQHG LQ SULPDULO\ GXH WR WKH IROORZLQJ UHDVRQV x /DZ QXPEHU ZKLFK KDV GHIHUUHG XQWLO 0DUFK WKH GDWHV RI WKH HQIRUFHPHQW RI HYLFWLRQV IRU RQO\ RI WKH HYLFWLRQV 7KH ODZ KDV DOVR UHPRYHG DURXQG PLOOLRQ (XUR IURP WKH 1DWLRQDO )XQG PHDQW WR DVVLVW LQ UHQWV LQFOXGLQJ DSSUR[LPDWHO\ FKHTXHV LQ 5RPH VSHFL¿FDOO\ x 7KH PDQQHU LQ ZKLFK KRXVLQJ RI VXSSOLHUV¶ DJHQFLHV DUH PDSSHG DQG WKH SULYDWLVDWLRQ RI SURSHUW\ RI RWKHU DJHQFLHV VXFK DV LQVXUDQFH LQVWLWXWLRQV DQG EDQNV x 7KH HIIHFWV RI GHFHQWUDOLVDWLRQ RI DXWKRULW\ RYHU KRXVLQJ WR WKH UHJLRQV ZLWKRXW WKH QHFHVVDU\ VWDWH ¿QDQFLDO VXSSRUW x 7KH LQFUHDVH LQ WKH SULFH RI UHQWDOV DQG VDOHV RI UHDO HVWDWH SURSHUW\ ZKLFK KDV EHHQ LQÃ&#x20AC;XHQFHG E\ ORZ EDQNLQJ UDWHV DQG UHVLGHQWLDO LQVHFXULW\ x 7KH Ã&#x20AC;RZ RI PLJUDWLRQ WR 5RPH DV D FDSLWDO FLW\ LQÃ&#x20AC;XHQFHG E\ JOREDOLVDWLRQ ZLWKRXW WKH 6WDWH RU WKH (XURSHDQ 8QLRQ DVVXPLQJ DQ\ UHVSRQVLELOLW\ IRU DWWHQGLQJ WR WKH LPSDFW RI WKLV LQÃ&#x20AC;X[ RI SHRSOH $V D UHVXOW RI WKLV PHHWLQJ 0XQLFLSDO DGPLQLVWUDWRUV FRPPLWWHG WKHPVHOYHV WR DQ LPSRUWDQW MRLQW GHFODUDWLRQ ZLWK WKH $*)( 0LVVLRQ DQG UHTXHVWHG PHPEHUV RI WKH $)*( WR VXSSRUW WKH SURSRVDO WR FUHDWH D (XURSHDQ )XQG IRU +RXVLQJ $VVLVWDQFH IRU PLJUDQWV
BBBBBBBBBBBB
$ FRS\ RI WKH GHFODUDWLRQ LV JLYHQ LQ &KDSWHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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¿QGLQJ MREV GXH WR WKHLU ODFN RI GRFXPHQWV 7KH FDPS ZDV GLYLGHG LQWR WKUHH VHFWLRQV ,Q DGGLWLRQ WR WZR WHPSRUDU\ WRLOHWV LQVLGH WKH HQWUDQFH WKH WZR FROOHFWLYH EDWKURRP VWUXFWXUHV ZHUH QRW ZRUNLQJ LW ZDV UHSRUWHG WKDW DW OHDVW RQH KDG QRW EHHQ ZRUNLQJ IRU D \HDU 7KH XQSDYHG SDWKV LQWR WKH FDPS ZHUH VWUHZQ ZLWK JDUEDJH DQG VWDQGLQJ ZDWHU 7KH DPD]LQJ IRUWLWXGH RI WKH SHRSOH OLYLQJ LQ WKH FDPS ZDV UHÃ&#x20AC;HFWHG LQ WKH FDUH RI WKHLU FORWKHV DQG SHUVRQDO K\JLHQH DOWKRXJK WKH HIIRUW WR PDLQWDLQ WKLV ZRXOG KDYH EHHQ D WUHPHQGRXV FKDOOHQJH DQG RQH LQ ZKLFK WKH ZRPHQ SDUWLFXODUO\ EHDU D KHDY\ VKDUH 7KHUH DUH QR DUHDV DYDLODEOH IRU VPDOO FKLOGUHQ WR SOD\ RWKHU WKDQ RXWVLGH WKH FDUDYDQV 7KH FKLOO\ ZLQWHUV PHDQ WKDW SHRSOH EXLOG ZRRG EXUQLQJ VWRYHV LQVLGH WKHLU FDUDYDQV ZKLFK KDV UHVXOWHG LQ QXPHURXV ¿UHV RYHU WKH \HDUV 3HRSOH LQWHUYLHZHG UHSRUWHG WKDW RYHU GHDWKV DQG PDQ\ PRUH LQMXULHV KDG RFFXUUHG DV D UHVXOW RI WKHVH ¿UHV
3KRWR Â&#x2039; )RWR (LGRQ &ODXGLR 0HOLVVDUL 5RPD
&RQGLWLRQV LQ WKH 5RPD FDPS DW 9LFROR 6DYLQL 5RPH DV REVHUYHG E\ WKH $*)( GHOHJDWLRQ RQ )HEUXDU\
0DQ\ RI WKH ZLQGRZV LQ WKH FDUDYDQV ZHUH SODVWHUHG ZLWK SDSHU DV D SRRU UHSODFHPHQW IRU JODVV ZLQGRZV 7ZR FROOHFWLYH ZDWHU WURXJKV ZHUH VHHQ WR EH FRQVWDQWO\ UXQQLQJ LQ WKH UHDU SDUW RI WKH FDPS ZKHUH WKH SRRUHVW SHRSOH OLYH 7KH RQJRLQJ QRLVH LQ WKH FDPS LQWHUUXSWV VOHHS
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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¿FXOW WR GUDZ FRQFOXVLRQV DERXW WKH DGHTXDF\ RI WKH VSDFH DYDLODEOH +RZHYHU LW ZDV FOHDU WKDW GXH WR WKH QDWXUH RI VTXDWWLQJ ZRPHQ¶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¿[HG SHQVLRQV ¿QG VXFK LQFUHDVHV SDUWLFXODUO\ XQVHWWOLQJ KDYLQJ WKRXJKW WKDW WKH\ ZRXOG EH DEOH WR VXVWDLQ WKHPVHOYHV RQ D KXVEDQG¶V SHQVLRQ
7KH UROH RI ZRPHQ 7DNLQJ LQWR FRQVLGHUDWLRQ WKH FXOWXUDO QRUPV RI WKH UHVLGHQWV LQ VRPH LQVWDQFHV GXULQJ PLVVLRQ LQWHUYLHZV ZLWK DIIHFWHG FRPPXQLWLHV IHZ RU QR ZRPHQ VSRNH ,W LV KDUG WR GUDZ VSHFL¿F FRQFOXVLRQV IURP WKLV DV VHSDUDWH PHHWLQJV ZHUH QRW VSHFL¿FDOO\ DUUDQJHG ZLWK ZRPHQ +RZHYHU WKHUH ZHUH D QXPEHU RI VLJQV RI LQLWLDWLYH DQG OHDGHUVKLS DPRQJVW WKH ZRPHQ LQ WKH FRPPXQLWLHV 7KH (ULWUHDQ ZRPHQ IRU H[DPSOH ZHUH DEOH WR DFFHVV PHGLFDO VHUYLFHV GXULQJ SUHJQDQF\ ,Q WKH FDVH RI WKH 5RPD FDPS RQH ZRPDQ LQ SDUWLFXODU ZDV LQYROYHG LQ WKH GHVLJQ RI EXLOGLQJV WKDW ZHUH WDNHQ RYHU DQG UHKDELOLWDWHG $GGLWLRQDOO\ LW VKRXOG EH QRWHG WKDW ZRPHQ LQ WKH YROXQWDU\ VHFWRU ZHUH YRFDO DQG DUWLFXODWH DERXW WKH LVVXHV EHLQJ IDFHG
2XWFRPHV RI WKH 5RPH 0LVVLRQ 6LJQDWXUH RI D FRPPRQ ¿QDO VWDWHPHQW 0XQLFLSDOLW\ RI 5RPH DQG $*)( PLVVLRQ 3DUWLFLSDQWV x $*)( GHOHJDWLRQ x 1LFROD *DOORUR GHOHJDWH RI WKH 0D\RU x &ODXGLR 0LQQHOOL UHVSRQVLEOH IRU PXQLFLSDO KRXVLQJ SROLFLHV x $VVRFLDWLRQV DQG VRFLDO PRYHPHQWV VXSSRUW WKH ULJKW WR KRXVLQJ $URXQG SHRSOH DWWHQGHG WKLV PHHWLQJ GXULQJ ZKLFK WKH UHVXOWV RI WKH PLVVLRQ ZHUH FRQVROLGDWHG DQG IXUWKHU DFWLYLWLHV LGHQWL¿HG $OO SDUWLFLSDQWV DJUHHG RQ WKH LPSRUWDQFH RI WKH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
PLVVLRQ WR UDLVH WKH DZDUHQHVV RI WKH &LW\ RQ WKH SUREOHP RI HYLFWLRQV ,W ZDV DOVR DJUHHG WKDW HYLFWLRQV VKRXOG EH FRQVLGHUHG DV D SUREOHP FDSDEOH RI EHLQJ VROYHG WKURXJK D ORFDOLVHG DFWLRQ SODQ FR RUGLQDWHG DW QDWLRQDO DQG (XURSHDQ OHYHOV EDVHG RQ UHVSHFW IRU WKH SURYLVLRQV RI $UWLFOH RI WKH ,QWHUQDWLRQDO &RYHQDQW RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV 7KH IROORZLQJ LVVXHV ZHUH KLJKOLJKWHG DQG SURSRVDOV PDGH GXULQJ WKH PHHWLQJ¶V GLVFXVVLRQV &ODXGLR 0LQQHOOL HPSKDVLVHG WKH UROH RI WKH 0XQLFLSDO $GPLQLVWUDWLRQ DQG FRQ¿UPHG LWV FRPPLWPHQW WR PDNH ³5RPH IUHH IURP HYLFWLRQV´ ZLWK D ³=HUR (YLFWLRQV´ DFWLRQ SODQ ZKLFK ZRXOG DOORZ IRU WKH IROORZLQJ x :LWK LPPHGLDWH HIIHFW SURSHUWLHV WR EH IUHHO\ REWDLQHG IURP RZQHUV EHWZHHQ DQG RI WKRVH FRQVWUXFWHG LQ H[FKDQJH IRU GHYHORSPHQW SHUPLWV EHWZHHQ DQG x :LWK LPPHGLDWH HIIHFW SXEOLF SURSHUWLHV WR EH VHOI UHKDELOLWDWHG WKURXJK SXEOLF IXQGLQJ EHWZHHQ DQG x %\ WKH HQG RI SURSHUWLHV WR EH REWDLQHG IURP SURYLGLQJ DJHQFLHV EHWZHHQ DQG x %\ WKH HQG RI SURSHUWLHV WR EH REWDLQHG IURP D FKDQJH LQ GHVLJQDWLRQ RI ODQG XVH DSSUR[LPDWHO\ RXW RI ZKLFK ZLWK VRFLDO UHQWV DURXQG ZLWK DQ DJUHHG PLQLPXP UHQW DURXQG ZLWK PRQWKO\ SD\ RXWV RI DERXW (XUR x %\ WKH HQG RI SURSHUWLHV IURP DQ H[WUDRUGLQDU\ SXEOLF UHVLGHQWLDO EXLOGLQJ SODQ E\ WKH 0XQLFLSDO $GPLQLVWUDWLRQ DURXQG 0DVVLPR 3DVTXLQL WKH VHFUHWDU\ RI 8QLRQH ,QTXLOLQL QRWHG WKDW WKH PLVVLRQ ZDV WKH ¿UVW RFFDVLRQ ZKHUH DVVRFLDWLRQV DQG PRYHPHQWV RWKHUZLVH QRW LQ FRQWDFW ZLWK HDFK RWKHU ZHUH DEOH WR VWDUW FRPPXQLFDWLQJ +H VWDWHG WKDW WKLV ZRXOG KDYH D ULSSOH DIIHFW LQ WKH IXWXUH +HQFH KH SURSRVHG LQ DJUHHPHQW ZLWK WKH DVVRFLDWLRQV SUHVHQW WKH GUDIWLQJ RI D FRPPRQ DQG LQGHSHQGHQW SRVLWLRQ WR JXDUDQWHH UHVSHFW WRZDUGV KRXVLQJ ULJKWV WKURXJK WKH HVWDEOLVKPHQW RI D µ&RRUGLQDWLRQ &RPPLWWHH IRU D 5RPH IUHH IURP HYLFWLRQV¶ WR PRQLWRU WKH FRPPLWPHQWV DQG WR LQLWLDWH FDPSDLJQV ,Q KLV UHÃ&#x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¿UPHG WKH DYDLODELOLW\ RI KLV ORFDO FRXQFLO IRU DQ H[FKDQJH RI H[SHULHQFHV DQG WZLQQLQJ ZLWK RWKHU ORFDO FRXQFLOV DQG PXQLFLSDOLWLHV &HVDUH 2WWROLQL LQ WKDQNLQJ WKH 5RPH 0XQLFLSDO $GPLQLVWUDWLRQ IRU WKH RSSRUWXQLW\ WR PHHW DQG VKDUH VWUDWHJLHV IRU GHDOLQJ ZLWK WKH LVVXH RI HYLFWLRQ FRQ¿UPHG WKDW WKH KRXVLQJ FULVLV VHHQ LQ 5RPH ZDV QRW YHU\ GLIIHUHQW IURP WKDW IRXQG LQ RWKHU ODUJH ,WDOLDQ DQG (XURSHDQ FLWLHV +H UHPLQGHG WKRVH SUHVHQW RI WKH SURSRVDO IRU D FRPPRQ LQLWLDWLYH EHWZHHQ WKH VRFLDO VWDNHKROGHUV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
DQG LQVWLWXWLRQV WR REWDLQ D VRFLDO (XURSHDQ GLUHFWLYH ZKLFK ZRXOG EDQ HYLFWLRQV ZLWKRXW DGHTXDWH UHORFDWLRQ ZKLOH DW WKH VDPH WLPH EORFN WKH %RONHQVWHLQ GLUHFWLYH RQ WKH OLEHUDOLVDWLRQ RI SXEOLF VHUYLFHV RI JHQHUDO LQWHUHVW $W WKH FRQFOXVLRQ RI WKH PHHWLQJ LQ FRQ¿UPDWLRQ WKDW DOO WKH SDUWLFLSDQWV ZHUH FRPPLWWHG WR UHDFKLQJ WKH REMHFWLYH WKH UHSUHVHQWDWLYHV RI WKH 5RPH 0XQLFLSDO $GPLQLVWUDWLRQ DQG WKH SDUWLFLSDQWV WR WKH $*)( PLVVLRQ DJUHHG WKDW FRQGLWLRQV ZHUH FRQGXFLYH WR ZRUNLQJ IRU D 5RPH IUHH IURP HYLFWLRQV $V D GHPRQVWUDWLRQ RI WKLV D GHFLVLRQ ZDV PDGH WR VLJQ D MRLQW )LQDO 'HFODUDWLRQ WR WKLV HIIHFW
.H\ UHVXOWV RI WKH $*)( PLVVLRQ WR 5RPH 7KH $*)( PLVVLRQ LQ 5RPH x $WWHQGHG PHHWLQJV ZLWK DQ HVWLPDWHG SHRSOH DQG DVVRFLDWLRQV LQVWLWXWLRQV DQG PRYHPHQWV x 7RRN SDUW LQ LQWHUYLHZV RQ UDGLR DQG WHOHYLVLRQ x 5HVXOWHG LQ WKH SXEOLFDWLRQ RI QXPHURXV DUWLFOHV LQ WKH ORFDO QDWLRQDO DQG LQWHUQDWLRQDO SUHVV VHH $QQH[ IRU DQ H[DPSOH RI SUHVV FRYHUDJH RI WKH PLVVLRQ x 5HVXOWHG LQ H[WHQVLYH FRYHUDJH RQ WKH LQWHUQHW 5HVXOWV RI WKH PLVVLRQ x 5DLVHG DZDUHQHVV RI WKH KRXVLQJ FULVLV LQ 5RPH x )DFLOLWDWHG WKH ¿UVW PHHWLQJ RI VRFLDO SDUWLHV DQG LQVWLWXWLRQV GLUHFWLQJ WKHLU DWWHQWLRQ WR WKH QHHG WR XVH WKH ULJKW WR DGHTXDWH KRXVLQJ DV WKH EDVLV IRU QHZ KRXVLQJ SROLFLHV x $Q XQRI¿FLDO EXW FOHDU FRPPLWPHQW E\ WKH 3UHIHFWXUH WR REVHUYH D PRQWK PRUDWRULXP RQ HYLFWLRQV DQG HYDFXDWLRQV x 7KH FRPPLWPHQW RI WKH 3UHIHFWXUH WR RUJDQLVH D WUDLQLQJ FRXUVH GXULQJ RQ $UWLFOH RI ,&(6&5 IRU PDJLVWUDWHV ZRUNHUV LQ WKH VHFWRU DQG DVVRFLDWLRQV ZLWK WKH SRVVLEOH KHOS RI WKH 81 +DELWDW H[SHUWV x 7KH FRPPLWPHQW RI WKH 3UHIHFWXUH DQG WKH 5RPH 0XQLFLSDOLW\ WR UHJXODULVH WKH RFFXSDWLRQ RI UHDO HVWDWH RU WR ¿QG DOWHUQDWLYH DFFRPPRGDWLRQ DV DJUHHG ZLWK WKH LQKDELWDQWV VWDUWLQJ ZLWK WKH VKHOWHU DFFRPPRGDWLRQ IRU UHIXJHHV RI YLD &ROODWLQD x 7KH FRPPLWPHQW RI WKH 3UHIHFWXUH DQG WKH 5RPH 0XQLFLSDOLW\ WR LPSURYH WKH FRRUGLQDWLRQ RI WKH H[FKDQJH RI LQIRUPDWLRQ RQ WKH KRXVLQJ FULVLV x 7KH DYDLODELOLW\ RI WKH ,,, ; DQG ;, 0XQLFLSDOLWLHV WR LVVXH OHJDO RUGLQDQFHV WR UHTXLVLWLRQ YDFDQW SURSHUWLHV RU SURSHUWLHV ZKRVH RFFXSDQWV KDG EHHQ DVNHG WR HYDFXDWH WKH SURSHUWLHV x 7KH VLJQLQJ RI D MRLQW GHFODUDWLRQ EHWZHHQ WKH $*)( GHOHJDWLRQ DQG WKH 5RPH 0XQLFLSDOLW\ WR DFKLHYH D ]HUR HYLFWLRQ SODQ DW D ORFDO OHYHO DV FR RUGLQDWHG DW QDWLRQDO DQG (XURSHDQ OHYHOV ZKLFK ZRXOG EH SHULRGLFDOO\ PRQLWRUHG x 7KH FRPPLWPHQW RI WKH DVVRFLDWLRQV DFWLQJ LQ WKH GHIHQFH RI HYLFWHHV DQG WKH KRPHOHVV DQG VRFLDO PRYHPHQWV WR HVWDEOLVK D µ&RRUGLQDWLRQ &RPPLWWHH IRU D 5RPH IUHH IURP HYLFWLRQV¶ x $ PRWLRQ RI VXSSRUW E\ SROLWLFDO SDUWLHV KDV EHHQ SUHVHQWHG WR WKH ,WDOLDQ 3DUOLDPHQW
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
3KRWR Â&#x2039; )RWR (LGRQ &ODXGLR 0HOLVVDUL ± 5RPD
+RXVLQJ ULJKWV DFWLYLVWV VRPH ZHDULQJ 81 FRORXUV ZHOFRPH WKH $*)( PLVVLRQ GXULQJ WKHLU YLVLW WR 5RPH )HE
,VVXHV DQG OHVVRQV OHDUQHG 3RVLWLYH DVSHFWV x 7KH SUHSDUDWLRQ RI WKH PLVVLRQ E\ WKH ,QWHUQDWLRQDO $OOLDQFH RI ,QKDELWDQWV DQG WKH ,WDOLDQ 7HQDQWV 8QLRQ 8QLRQH ,QTXLOLQL RSWLPLVHG WKH WLPLQJ DQG UHODWLRQVKLSV ZLWK WKH 5RPH 0XQLFLSDOLW\ DQG WKH QHWZRUNV RI FLWL]HQV¶ DVVRFLDWLRQV x 7KH PLVVLRQ DWWUDFWHG PHGLD DWWHQWLRQ ZKLFK DPSOL¿HG WKH HIIHFW RI HDFK LQGLYLGXDO YLVLW DQG HYHQW x 7KH SUHVHQFH RI PLVVLRQ PHPEHUV IURP )UDQFH DQG WKH 8QLWHG 6WDWHV ZLGHQHG KRUL]RQV DQG HQDEOHG WKH LGHQWL¿FDWLRQ RI LQWHUHVWLQJ SROLF\ RSSRUWXQLWLHV 6RPH GLI¿FXOWLHV x $ ODFN RI WLPH WR PHHW DOO WKH SHUVRQV ZKR KDG UHTXHVWHG PHHWLQJV x 7KH XQDYDLODELOLW\ RI WKH ,WDOLDQ &HQWUDO *RYHUQPHQW VXFK DV WKH 0LQLVWU\ RI -XVWLFH 0LQLVWU\ RI ,QWHULRU $IIDLUV 0LQLVWU\ RI ,QIUDVWUXFWXUH DQG 0LQLVWU\ RI :HOIDUH WR PHHW ZLWK WKH GHOHJDWLRQ PHPEHUV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
)ROORZ XS DFWLYLWLHV &RPSLODWLRQ RI 0LVVLRQ 5HSRUWV 7KH SDUWLFLSDQWV RI WKH $*)( PLVVLRQ DUH FRPPLWWHG WR GUDIWLQJ GRFXPHQWV WR H[WHQG WKH LQWHUQDO DQG H[WHUQDO GHEDWH WR $*)( DV IROORZV x &HVDUH 2WWROLQL D UHSRUW RQ WKH $*)( PLVVLRQ LQ 5RPH x %HUQDUG %LUVLQJHU D UHSRUW RQ WKH SURSRVDO IRU LQWHUQDWLRQDO WZLQQLQJ H[FKDQJH RI H[SHULHQFHV EHWZHHQ ORFDO DXWKRULWLHV DQG DVVRFLDWLRQV RQ EHVW SUDFWLFHV LQ IDYRXU RI VHFXULW\ RI KRXVLQJ WHQXUH x 2OLYLHU 9DOHQWLQ D UHSRUW RQ WKH UROH RI WKH DVVRFLDWLRQV DQG QHWZRUNV RI LQKDELWDQWV LQ WKH ¿JKW DJDLQVW HYLFWLRQV DQG WR IDYRXU H[FKDQJHV RQ LQWHUQDWLRQDO H[SHULHQFHV DQG x -DFTXHOLQH /HDYLWW D UHSRUW LQ VXSSRUW RI WKH UROH SOD\HG E\ ZRPHQ LQ LQLWLDWLYHV DJDLQVW HYLFWLRQV LQ ULFK FRXQWULHV DQG WR IDYRXU H[FKDQJHV RQ LQWHUQDWLRQDO H[SHULHQFHV )ROORZ XS RQ JHQGHU DVSHFWV RI IRUFHG HYLFWLRQV LQ ,WDO\ 7KH $*)( PLVVLRQ WR ,WDO\ GHPRQVWUDWHG WKH JHQGHU DVSHFWV RI LQDGHTXDWH KRXVLQJ FRQGLWLRQV DQG IRUFHG HYLFWLRQ DQG WKH SDUWLFXODU EXUGHQ IDOOLQJ RQ ZRPHQ +RZHYHU WKHUH ZDV LQVXI¿FLHQW WLPH RU RSSRUWXQLW\ GXULQJ WKH PLVVLRQ WR GR MXVWLFH WR WKHVH FUXFLDO LVVXHV 8SRQ UHWXUQLQJ WR WKH 8QLWHG 6WDWHV -DFTXHOLQH /HDYLWW GLG VRPH UHVHDUFK DQG LGHQWL¿HG D OLVW RI :RPHQ¶V 2UJDQL]DWLRQV LQ ,WDO\ WKDW FRXOG EH FROODERUDWHG ZLWK LQ RUGHU WR LQWHUDFW PRUH WKRURXJKO\ ZLWK WKH LVVXH $ QXPEHU RI WKHVH RUJDQLVDWLRQV DUH LQ 5RPH LQFOXGLQJ WKH ,WDOLDQ :RPHQ¶V &HQWHU 0LJUDQW :RPHQ¶V 1HWZRUN LQ ,WDO\ DQG WKH ,WDOLDQ $VVRFLDWLRQ IRU :RPHQ LQ 'HYHORSPHQW $,'26 7KH ,WDOLDQ :RPHQ¶V &HQWHU LV LGHQWL¿HG DV ³FRQWULEXWLQJ WR WKH GHYHORSPHQW RI FLYLF PLQGHGQHVV RI LQGLYLGXDOV DQG WR FRPPXQLW\ GHYHORSPHQW´ DQG LQFOXGHV VWLPXODWLQJ ³ORFDO FRPPXQLWLHV WR LQFUHDVH WKHLU RZQ GHYHORSPHQW DQG SURPRWHV FXOWXUDO DQG VRFLDO VHUYLFHV LQ JHQHUDO´ $,'26 LV D QRQ JRYHUQPHQWDO QRQ SUR¿W RUJDQLVDWLRQ WKDW ZDV VWDUWHG LQ IRU WKH H[SUHVV SXUSRVH RI FDUU\LQJ RXW WKH JRDOV RI WKH 81 'HFDGH IRU :RPHQ ,WV HPSKDVLV LV RQ 1*2V LQ GHYHORSLQJ FRXQWULHV LQ DUHDV RI UHSURGXFWLYH KHDOWK PLFUR DQG VPDOO HQWHUSULVHV DQG FDSDFLW\ EXLOGLQJ RI ZRPHQ¶V RUJDQL]DWLRQV DQG LQVWLWXWLRQV 2WKHU JURXSV PD\ ZLWK DQ LQWHUHVW LQ KRXVLQJ DQG FRPPXQLW\ GHYHORSPHQW RU SDUWLFXODU DVSHFWV WKHUHRI PD\ DOVR H[LVW ,Q DGGLWLRQ WKHUH DUH UHSRUWV DYDLODEOH ZKLFK DGGUHVV ZRPHQ¶V LVVXHV LQ ,WDO\ IRU H[DPSOH BBBBBBBBBBBB
$V LQGLFDWHG WKH SUHVHQW UHSRUW LV D WUDQVODWHG H[WUDFW RI WKH IXOO PLVVLRQ UHSRUW ZKLFK LV RQ ¿OH ZLWK $*)( 7KH IXOO UHSRUW LQFOXGHV WKH IROORZLQJ DGGHQGD ZKLFK DUH XQIRUWXQDWHO\ WRR ODUJH WR UHSURGXFH KHUH &RPPRQ ¿QDO VWDWHPHQW EHWZHHQ 0XQLFLSDOLW\ RI 5RPH ± $*)( PLVVLRQ 0RWLRQ RI WKH ,,, 0XQLFLSDOLW\ 0RWLRQ RI WKH ; 0XQLFLSDOLW\ 0RWLRQ RI WKH ;, 0XQLFLSDOLW\ 0RWLRQ SUHVHQWHG WR WKH ,WDOLDQ 3DUOLDPHQW 5HTXHVW IRU D $*)( ³)DFW )LQGLQJ 0LVVLRQ´ LQ 0LODQ ,WDO\ 3UHVV UHOHDVH 3KRWRJUDSKV RI WKH PLVVLRQ DQG RI WKH VLWXDWLRQV REVHUYHG )LOH ZLWK SURSRVDOV DQG FODLPV PDGH E\ DVVRFLDWLRQV )LOH ZLWK SROLWLFDO SURSRVDOV IRU KRXVLQJ &*,/ &,6/ 8,/ 681,$ 6,&(7 81,$7 2EVHUYDWLRQV DQG SURSRVDOV RQ WKH KRXVLQJ FULVLV E\ $1&, $*&, )HGHUOD]LR /HJD GHOOH &RRSHUDWLYH /LVW RI SHUVRQV PHW DQG FRQWDFW GHWDLOV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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¶V $FDGHP\ *:,$ LQ ZKLFK ZRPHQ DUH ERWK VWXGHQWV DQG WHDFKHUV LQ DQ LQWHUQDWLRQDO H[FKDQJH RI PRGHOV DQG LGHDV IRU FRPPXQLW\ GHYHORSPHQW :KLOH D QHWZRUN RI VWDNHKROGHUV ZDV FOHDUO\ HYLGHQW LQ WKH 5RPH PLVVLRQ DQG ZRPHQ ZHUH SDUW RI LW IRFXV RQ KRXVLQJ DV D KXPDQ ULJKW GRHV QRW LQ DQG RI LWVHOI H[SOLFLWO\ PDNH YLVLEOH ZRPHQ¶V YRLFHV :LWKRXW IXUWKHU FRQVXOWDWLRQ ZLWK ZRPHQ LW LV SODXVLEOH WR H[SODLQ WKHLU QHHGV EXW WKLV LV RQO\ D ¿UVW VWHS LQ LGHQWLI\LQJ WKH LVVXHV DQG DFWLQJ RQ D VWUDWHJ\ +RXVLQJ DV D KXPDQ ULJKW LV D SRZHUIXO RUJDQL]LQJ WRRO LW LV HVVHQWLDO WKDW ZRPHQ¶V FRQWULEXWLRQ WR WKLV FDOO LV LGHQWL¿HG :RPHQ EULQJ D SDUWLFXODU XQGHUVWDQGLQJ RI FRPPXQLW\ DQG WKH UH LQWHJUDWLRQ LQWR WKH FROOHFWLYH QDWXUH RI VRFLDO OLIH ([FKDQJH 3URJUDPPH 7KH $*)( PLVVLRQ RIIHUHG WKH SRVVLELOLW\ WR SURPRWH H[FKDQJH SURJUDPPHV ZLWK RWKHU ,WDOLDQ ORFDO FRXQFLOV DQG LQWHUQDWLRQDO QHWZRUNV WR GHYHORS JRRG SUDFWLFHV 7KH 0XQLFLSDOLW\ RI %RELJQ\ LQ )UDQFH SURSRVHG DQ H[FKDQJH RQ µWHUULWRULHV IUHH IURP HYLFWLRQV¶ DQG RQ VHWWLQJ XS D QDWLRQDO KRXVLQJ SXEOLF VHUYLFH 7KH PHPEHU IURP WKH +XDLURX &RPPLVVLRQ SURSRVHG H[FKDQJHV RQ VHFXULW\ RI KRXVLQJ WHQXUH ZLWK SDUWLFXODU HPSKDVLV RQ ZRPHQ DQG FKLOGUHQ 6SHFLDO DWWHQWLRQ VKRXOG EH JLYHQ WR 1RUWK 1RUWK H[FKDQJHV JLYHQ WKHLU VSHFL¿FLWLHV RI H[SHULHQFHV G\QDPLFV DQG FKDOOHQJHV
5HFRPPHQGDWLRQV 7KH PLVVLRQ GHOHJDWHV SUHVHQWHG WKH IROORZLQJ UHFRPPHQGDWLRQV IRU FRQVLGHUDWLRQ WR WKH &RQYHQRU DQG WR 81 +DELWDW *OREDO OHYHO x 7R RUJDQLVH D VHVVLRQ RI $*)( WR GLVFXVV WKH UHSRUWV IURP WKH PLVVLRQV GRQH 5RPH 'RPLQLFDQ 5HSXEOLF DQG &XULWLED LQ RUGHU WR XQGHUVWDQG EHWWHU WKH SRWHQWLDOV DQG GLI¿FXOWLHV LQ WKHVH W\SHV RI LQLWLDWLYHV x 7R LQIRUP DOO WKH OHYHOV RI 81 +DELWDW RQ WKH UHVXOWV DFKLHYHG x 7R SURYLGH PHPEHUV LQ D PLVVLRQ ZLWK WKH QHFHVVDU\ WRROV WR EH DEOH WR SURYLGH FRQWLQXLW\ PRQLWRULQJ LPSOHPHQWDWLRQ HQODUJHPHQW x 7R SURYLGH WKH PHPEHUV RI WKH $*)( ZLWK D VWDWXV WKDW FDQ DOORZ WKHP WR LQWHUYHQH SURSHUO\ WR EH DEOH WR YHULI\ DQG SURSRVH UHFRQFLOLDWLRQ PHHWLQJV EHWZHHQ SDUWLHV HYHQ RXWVLGH WKH RI¿FLDO SDUDPHWHUV RI WKH PLVVLRQ LQ VLWXDWLRQV RI JUDYH WKUHDWV WR VHFXULW\ RI KRXVLQJ WHQXUH
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
,WDOLDQ DQG (XURSHDQ OHYHOV x 7R VXSSRUW WKH LQGHSHQGHQW PRQLWRULQJ DQG LPSOHPHQWDWLRQ RI WKH FRPPLWPHQWV DVVXPHG E\ WKH 5RPH 0XQLFLSDOLW\ LQ WKH ¿QDO -RLQW 'HFODUDWLRQ x 7R SURPRWH H[FKDQJHV EHWZHHQ DVVRFLDWLRQV DQG PRYHPHQWV DW DQ LQWHUQDWLRQDO OHYHO x 7R FRQVLGHU WKH SRVVLELOLW\ RI RUJDQLVLQJ D PLVVLRQ DW QDWLRQDO OHYHO LQ ,WDO\ GXULQJ IRU H[DPSOH WR 0LODQ )ORUHQFH 1DSOHV x 7R FRQVLGHU WKH SRVVLELOLW\ RI RUJDQLVLQJ D PLVVLRQ DW D (XURSHDQ OHYHO LQ IRU H[DPSOH WR )UDQFH *HUPDQ\ 6SDLQ 3RODQG x 7R VXSSRUW WKH RUJDQLVDWLRQ RI WUDLQLQJ FRXUVHV RQ WKH ULJKW WR KRXVLQJ WR EH RUJDQLVHG E\ WKH 5RPH 3UHIHFWXUH GXULQJ
3KRWR Â&#x2039; )RWR (LGRQ 9LQFHQ]R 7HUVLJQL ± 5RPD
6LJQDWXUH RI WKH MRLQW VWDWHPHQW EHWZHHQ WKH 0XQLFLSDOLW\ RI 5RPH DQG WKH $*)( 0LVVLRQ )HEUXDU\
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
7KH FDVH RI 6UL /DQND (YLFWLRQ WKUHDWV GXULQJ WKH UHFRQVWUXFWLRQ SKDVH IROORZLQJ WKH ,QGLDQ 2FHDQ 7VXQDPL 7KH WUHPHQGRXV ORVV RI OLIH DQG SURSHUW\ DV D UHVXOW RI WKH ,QGLDQ 2FHDQ 7VXQDPL KDV EHHQ ZLGHO\ DGGUHVVHG EXW RQO\ QRZ DUH WKH KXPDQ ULJKWV DQG HYLFWLRQ WKUHDWV HPHUJLQJ IURP WKH UHFRQVWUXFWLRQ SURFHVV EHFRPLQJ PRUH ZLGHO\ NQRZQ :KLOH VXFK WKUHDWV DUH DIIHFWLQJ DOO 7VXQDPL DIIHFWHG FRXQWULHV DOEHLW WR ZLGHO\ YDU\LQJ GHJUHHV WKLV FDVH VWXG\ ZULWWHQ E\ 6FRWW /HFNLH EULHÃ&#x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
3KRWR &2+5(
)DURXN 7HEEDO DGGUHVVHV WKH SRVW 7VXQDPL UHFRQVWUXFWLRQ PHHWLQJ KHOG LQ 6UL /DQND RQ 0DUFK
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
7KH PHWUH H[FOXVLRQ ]RQH ,Q ZKDW DSSHDUV WR WKH EH WKH ODWHVW DQQRXQFHPHQW E\ WKH *RYHUQPHQW FRQFHUQLQJ WKH SURSRVHG PHWUH EXIIHU ]RQH WKH 3UHVLGHQWLDO 6HFUHWDULDW¶V 1RWLFH RQ 5HFRQVWUXFWLRQ IRU +RXVLQJ %XVLQHVVHV )LVKLQJ ,QGXVWU\ $IIHFWHG E\ WKH 7VXQDPL RQ )HEUXDU\ DVVHUWV WKDW QR QHZ FRQVWUXFWLRQ ZLOO EH SHUPLWWHG ZLWKLQ PHWUHV RI WKH PHDQ VHD OHYHO ,W FRQWLQXHV PDNLQJ WKH EROG SURPLVH WKDW WKH *RYHUQPHQW ZLOO LGHQWLI\ ODQGV FORVHVW WR HDFK DIIHFWHG YLOODJH DQG EXLOG D KRXVH IRU HYHU\ DIIHFWHG KRXVH RZQHU ZKR OLYHG ZLWKLQ WKH VDLG PHWUHV 7KH *RYHUQPHQW ZLOO SURYLGH WKHVH KRXVHV IUHH RI FKDUJH 3ULYDWHO\ RZQHG ODQG ZLWKLQ WKH PHWUH ]RQH ZLOO UHPDLQ WKH SURSHUW\ RI WKH RULJLQDO RZQHUV DQG WKH *RYHUQPHQW VWDWHV WKDW LW ZLOO QRW µLQ DQ\ ZD\ FODLP RZQHUVKLS WR VXFK SURSHUW\¶ 'HWDLOHG SODQQLQJ PDSV DW WKH 8UEDQ 'HYHORSPHQW $XWKRULW\ 8'$ FOHDUO\ GHPDUFDWH ERWK WKH P DQG P ]RQHV DORQJ URXJKO\ NP RI 6UL /DQND¶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¿FLDOV LQGLFDWH WKDW WHPSRUDU\ KRXVLQJ UHEXLOW E\ WKH GLVSODFHG ZLWKLQ WKH P ]RQH ZLOO EH WROHUDWHG LQ WKH VKRUW WHUP DQG XQWLO VXFK WLPH WKDW QHZ KRXVLQJ LV FRQVWUXFWHG IRU WKRVH PDGH KRPHOHVV 6RPH RI¿FLDOV KDYH DOVR LQGLFDWHG WKDW H[LVWLQJ VWUXFWXUHV BBBBBBBBBBBB
0RUH WKDQ D PRQWK HDUOLHU WKH 8'$ LVVXHG 3XEOLF 1RWLFH 'HFHPEHU ZKLFK DVVHUWHG WKDW ³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´ 7KH 8'$ WKHUHIRUH ZLOO KDYH SRZHUV WR DFW IURP &RORPER WR GHWHUPLQH DOO PDMRU KRXVLQJ ODQG DQG SURSHUW\ GHFLVLRQV DIIHFWLQJ WKH HQWLUH PHWUH ]RQH DORQJ PRUH WKDQ NP RI FRDVWOLQH ,Q 5HKDELOLWDWLRQ DQG 5HFRQVWUXFWLRQ RI 7VXQDPL $IIHFWHG $UHDV 8UEDQ 'HYHORSPHQW $XWKRULW\ 0LQLVWU\ RI 8UEDQ 'HYHORSPHQW DQG :DWHU 6XSSO\ WKH PDMRU WDVNV DUH LGHQWL¿HG DV WKH HQIRUFHPHQW RI SODQQLQJ DQG EXLOGLQJ UHJXODWLRQV IRU WKH &RQVHUYDWLRQ =RQH LQFOXGLQJ WKH IUDPLQJ RI D UHJXODWLRQ IRU P DQG P &RQVHUYDWLRQ =RQH 6XUYH\LQJ DQG SHJJLQJ RI WKH P DQG P =RQH DQG WKH HQIRUFHPHQW RI WKHVH E\ WKH ORFDO DXWKRULW\ DQG WKH 0LQLVWU\ RI 3XEOLF 6HFXULW\ /DZ DQG 2UGHU 2YHU DQG DERYH WKH SRZHUV RI WKH &RVWDO &RQVHUYDWLRQ 'HSDUWPHQW WKH 8'$ KDV SRZHUV WKDW DUH QRW UHODWHG WR WKH &RDVWDO &RQVHUYDWLRQ $FW 5DWKHU 8'$¶V DXWKRULW\ OLHV ZLWK WKH JD]HWWHG QRWLFH 1R RI LQ ZKLFK WKH HQWLUH FRDVW ZDV GHFODUHG DQ 8UEDQ 'HYHORSPHQW $UHD 7KLV DUHD LQFOXGHV WKH PHWUH DUHD XQGHU WKH &RVWDO &RQVHUYDWLRQ $FW EXW LV DFWXDOO\ PXFK ZLGHU XS WR RQH NLORPHWUH LQODQG 7R FRPSOLFDWH PDWWHUV ERWK WKH 8'$ DQG WKH &RVWDO &RQVHUYDWLRQ 'HSDUWPHQW WHFKQLFDOO\ KDYH WKH ULJKW WR LVVXH SHUPLWV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
ZLWKLQ WKH P ]RQH ZLOO EH DOORZHG WR UHPDLQ DQG EH LQKDELWHG DOWKRXJK RWKHU RI¿FLDOV KDYH LQGLFDWHG WKDW WKH HQWLUH DIIHFWHG DUHD ZLOO EH D QRQ UHVLGHQWLDO ]RQH 2I¿FLDOV VHHP WR EH XQDQLPRXV LQ WKHLU VXSSRUW IRU DOORZLQJ KRWHOV DQG RWKHU EXVLQHVVHV WR UHPDLQ ZLWKLQ WKH EXIIHU ]RQH DOWKRXJK VRPH QHZ EXLOGLQJ UHVWULFWLRQV ZLOO DSSO\ &OHDUO\ WKLV GHFLVLRQ WR FUHDWH D EXIIHU ]RQH ZKLFK LV VWLOO QRW \HW ODZ ZLOO KDYH D PDUNHG LPSDFW XSRQ WKH SRVVLELOLWLHV RI UHWXUQ E\ WKRVH GLVSODFHG E\ WKH 7VXQDPL ,QGHHG WKH :RUOG %DQN HW DO UHFRJQLVHG DV PXFK ZLWKLQ LWV H[WHQVLYH SRVW 7VXQDPL 1HHGV $VVHVVPHQW UHSRUW ZKHUH LW DVVHUWHG LQ UHIHUHQFH WR WKH P UXOH WKDW ³/HIW SHQGLQJ WKLV LVVXH SRVHV WKH VLQJOH PRVW FULWLFDO WKUHDW WR WKH HQWLUH UHFRYHU\ DQG UHFRQVWUXFWLRQ SURFHVV´ ,Q VHHNLQJ WR MXVWLI\ WKH FRQWURYHUVLDO P UXOH WKH *RYHUQPHQW KDV UHLWHUDWHG WKH QHHG WR SURWHFW WKH SXEOLF IURP IXWXUH 7VXQDPLV RU PDMRU VWRUPV DQG LWV UHTXLVLWH GXWLHV WR XSKROG H[LVWLQJ ODZ 2QH *RYHUQPHQW RI¿FLDO LQGLFDWHG WKDW ³WKH PHWUH UXOH LV IRU WKH EHQH¿W RI WKH SRRU WKHPVHOYHV´ :KHQ DVNHG DERXW ZK\ SDUWV RI WKH FRDVW ZLOO KDYH P QR EXLOG ]RQHV ZKLOH RWKHUV ZLOO KDYH D P ]RQH RQH 8'$ RI¿FLDO PHQWLRQHG WKDW WKH (DVW LV PRUH SURQH WR F\FORQHV DQG WKXV D P ]RQH ZDV QHFHVVDU\ WKHUH +H DOVR QRWHG WKDW WKH 6RXWKHUQ DQG (DVWHUQ =RQHV DUH JHRJUDSKLFDOO\ SK\VLFDOO\ DQG HQYLURQPHQWDOO\ GLIIHUHQW IURP RQH DQRWKHU DQG WKDW DW DQ\ UDWH WKHUH DUH DOUHDG\ GLIIHUHQW EXLOGLQJ FRGHV LQ HDFK DUHD GXH WR WKHVH GLIIHULQJ FKDUDFWHULVWLFV
9ROXQWDU\ 5HWXUQ RU 5HORFDWLRQ" 2I DOO WKH TXHVWLRQV FRQFHUQLQJ WKH P ]RQH LW LV WKH LVVXH RI µYROXQWDU\ UHWXUQ RU UHORFDWLRQ¶ WKDW LV SHUKDSV WKH PRVW ZRUU\LQJ 7KH LPSRVLWLRQ RI WKH P UXOH UHPRYHV WKH SULQFLSOH RI YROXQWDU\ UHWXUQ IURP WKH UHFRQVWUXFWLRQ HTXDWLRQ ,W HIIHFWLYHO\ SUHYHQWV ODUJH QXPEHUV RI SHRSOH ± LQFOXGLQJ WKRVH ZLWK UHFRJQLVHG OHJDO ULJKWV RI RZQHUVKLS WR KRXVLQJ ODQG DQG SURSHUW\ DQG WKRVH ZLWK UHODWHG SUHVFULSWLRQ ULJKWV ± IURP UHWXUQLQJ WR WKHLU KRPHV RU SODFHV RI KDELWXDO UHVLGHQFH 7KRVH DIIHFWHG E\ WKH UXOH KDYH QRW EHHQ VXI¿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¶V UHVLGHQFH %RWK RI WKHVH ULJKWV ZLOO EH IXQFWLRQDOO\ LPSRVVLEOH IRU WKH GLVSODFHG WR H[HUFLVH VKRXOG WKH\ ZLVK WR YROXQWDULO\ UHWXUQ WR WKHLU IRUPHU KRPHV DQG RU ODQGV DQG DUH SUHYHQWHG IURP GRLQJ VR ZLWKRXW OHJDOO\ VRXQG MXVWL¿FDWLRQ BBBBBBBBBBBB
$'% -%,& DQG :RUOG %DQN -DQXDU\ 6UL /DQND 3RVW 7VXQDPL 5HFRYHU\ 3URJUDP ± 3UHOLPLQDU\ 'DPDJH DQG 1HHGV $VVHVVPHQW
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
8QGHU LQWHUQDWLRQDO ODZ SUHYHQWLQJ D SHUVRQ RU IDPLO\ IURP UHWXUQLQJ WR WKHLU RULJLQDO KRPH PD\ LQ VRPH FLUFXPVWDQFHV DOVR YLRODWH WKH ULJKW WR IUHHGRP RI PRYHPHQW DQG WKH IUHHGRP WR FKRRVH RQH¶V UHVLGHQFH ZLWKLQ WKH WHUULWRU\ RI D 6WDWH 7KHUHIRUH EHIRUH WKH *RYHUQPHQW RI 6UL /DQND LPSRVHV PHDVXUHV WKDW SUHYHQW UHVLGHQWV IURP UHWXUQLQJ WR WKH P ]RQH WKHUH PXVW EH MXVWL¿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µIRUFHG¶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
6UL /DQND KDV DOVR UDWL¿HG WKH ,QWHUQDWLRQDO &RYHQDQW RQ &LYLO DQG 3ROLWLFDO 5LJKWV ,&&35 ZKLFK SURWHFWV WKLV ULJKW LQ $UWLFOH 7KH +XPDQ 5LJKWV &RPPLWWHH KDV FRPPHQWHG RQ WKH ULJKW WR IUHHO\ FKRRVH RQH¶V UHVLGHQFH DV IROORZV ³6XEMHFW WR WKH SURYLVLRQV RI DUWLFOH SDUDJUDSK WKH ULJKW WR UHVLGH LQ D SODFH RI RQH¶V FKRLFH ZLWKLQ WKH WHUULWRU\ LQFOXGHV SURWHFWLRQ DJDLQVW DOO IRUPV RI IRUFHG LQWHUQDO GLVSODFHPHQW ,W DOVR SUHFOXGHV SUHYHQWLQJ WKH HQWU\ RU VWD\ RI SHUVRQV LQ D GH¿QHG SDUW RI WKH WHUULWRU\´ +XPDQ 5LJKWV &RPPLWWHH *HQHUDO &RPPHQW 1R )UHHGRP RI PRYHPHQW $UWLFOH DW SDUD 7KHUHIRUH DQ\ UHVWULFWLRQ RQ ULJKW RI SHUVRQ WR FKRRVH D SODFH WR UHVLGH LV D SULPD IDFLH YLRODWLRQ RI WKH ,&&35 $ 6WDWH PXVW WXUQ WR SDUDJUDSK RI WKH DUWLFOH DQG SURYH WKDW WKH UHVWULFWLRQ LV FRQWDLQHG LQ ODZ DQG LV MXVWL¿HG IRU H[DPSOH WR SURWHFW SXEOLF RUGHU RU SXEOLF KHDOWK 7KH IXOO WH[W RI $UWLFOH UHDGV µ7KH DERYH PHQWLRQHG ULJKWV VKDOO QRW EH VXEMHFW WR DQ\ UHVWULFWLRQV H[FHSW WKRVH ZKLFK DUH SURYLGHG E\ ODZ DUH QHFHVVDU\ WR SURWHFW QDWLRQDO VHFXULW\ SXEOLF RUGHU RUGUH SXEOLF SXEOLF KHDOWK RU PRUDOV RU WKH ULJKWV DQG IUHHGRPV RI RWKHUV DQG DUH FRQVLVWHQW ZLWK WKH RWKHU ULJKWV UHFRJQL]HG LQ WKH SUHVHQW &RYHQDQW ¶ 7KLV VHFRQG WHVW RI SURSRUWLRQDOLW\ RU UHDVRQDEOHQHVV PHDQV WKDW WKH 6WDWH ZRXOG KDYH WR WDNH LQWR DFFRXQW WKH ULJKW DQG WKH QHHG IRU KRXVLQJ EHIRUH LPSRVLQJ UHVWULFWLRQV RQ WKH ULJKW WR UHWXUQ WR DQ DIIHFWHG DUHD $V DQRWKHU VWDQGDUG *HQHUDO &RPPHQW 1R RQ WKH ULJKW WR DGHTXDWH KRXVLQJ FRQFOXGHV ³,Q WKLV UHJDUG WKH &RPPLWWHH FRQVLGHUV WKDW LQVWDQFHV RI IRUFHG HYLFWLRQV DUH SULPD IDFLH LQFRPSDWLEOH ZLWK WKH UHTXLUHPHQWV RI WKH &RYHQDQW DQG FDQ RQO\ EH MXVWL¿HG LQ WKH PRVW H[FHSWLRQDO FLUFXPVWDQFHV DQG LQ DFFRUGDQFH ZLWK WKH UHOHYDQW SULQFLSOHV RI LQWHUQDWLRQDO ODZ ´ ,Q WKLV UHJDUG WKH &RPPLWWHH FRQVLGHUV WKDW ³LQVWDQFHV RI IRUFHG HYLFWLRQV DUH SULPD IDFLH LQFRPSDWLEOH ZLWK WKH UHTXLUHPHQWV RI WKH &RYHQDQW DQG FDQ RQO\ EH MXVWL¿HG LQ WKH PRVW H[FHSWLRQDO FLUFXPVWDQFHV DQG LQ DFFRUGDQFH ZLWK WKH UHOHYDQW SULQFLSOHV RI LQWHUQDWLRQDO ODZ ´ *HQHUDO &RPPHQW 1R 7KH ULJKW WR DGHTXDWH KRXVLQJ $UW RI WKH &RYHQDQW 8QLWHG 1DWLRQV &RPPLWWHH RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV *HQHUDO &RPPHQW 1R RQ WKH 5LJKW WR +RXVLQJ ,Q FRXQWULHV ZKHUH WKH ULJKW WR KRXVLQJ KDV EHHQ DGGUHVVHG E\ WKH MXGLFLDU\ WKLV LQWHUSUHWDWLRQ KDV EHHQ FRQ¿UPHG LQ FDVH ODZ 7KH 6RXWK $IULFDQ &RQVWLWXWLRQDO &RXUW KDV VWDWHG ³7KH LQGLJQLW\ VXIIHUHG DV D UHVXOW RI HYLFWLRQV IURP KRPHV IRUFHG UHPRYDOV DQG WKH UHORFDWLRQ WR ODQG RIWHQ ZKROO\ LQDGHTXDWH IRU KRXVLQJ QHHGV KDV WR EH UHSODFHG ZLWK D V\VWHP LQ ZKLFK WKH VWDWH PXVW VWULYH WR SURYLGH DFFHVV WR DGHTXDWH KRXVLQJ IRU DOO DQG ZKHUH WKDW H[LVWV UHIUDLQ IURP SHUPLWWLQJ SHRSOH WR EH UHPRYHG XQOHVV LW FDQ EH MXVWL¿HG´ -DIWKD Y 6FKRHPDQ DQG RWKHUV 9DQ 5RR\HQ Y 6WROW] DQG RWKHUV &DVH &&7 MXGJPHQW GHOLYHUHG 2FWREHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$UELWUDULQHVV $QRWKHU FRQFHUQ DERXW WKH SURSRVHG EXIIHU ]RQH UHODWHV WR ZKDW DSSHDUV WR WKH DUELWUDU\ QDWXUH RI WKH SURSRVDOV FRQFHUQHG DQG WKH LQFRQVLVWHQW DQG SRWHQWLDOO\ GLIIHUHQWLDO WUHDWPHQW WKDW PD\ RFFXU GXULQJ LPSOHPHQWDWLRQ :KLOH VRPH HQYLURQPHQWDO DQG UHODWHG MXVWL¿FDWLRQV KDYH EHHQ JLYHQ DV WR ZK\ LQ VRPH DUHDV WKH ]RQH H[WHQGV P IURP WKH VHD ZKLOH LQ RWKHUV LW FRYHUV D P DUHD WKH GLIIHUHQFH EHWZHHQ WKHVH WZR ]RQHV FUHDWHV WKH LPSUHVVLRQ RI GLIIHUHQWLDO WUHDWPHQW ,I UHDVRQV EDFNHG E\ VFLHQWL¿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¿VKHU IRON FRPPXQLWLHV ZKLFK FRPSULVHG VRPH RI 6UL /DQND¶V 7VXQDPL YLFWLPV DQG ZKR QRZ FRQVWLWXWH D ODUJH PDMRULW\ RI WKH GLVSODFHG DQG KRPHOHVV 0RVW RI WKH DIIHFWHG ¿VKHU IRON FRPPXQLWLHV OLH ZLWKLQ WKH P EXIIHU ]RQH DQG WKXV WKH LPSDFW RI WKH UXOH ZLOO EH FRQVLGHUDEOH %HLQJ GHSHQGHQW XSRQ GLUHFW DFFHVV WR WKH VHD IRU WKHLU OLYHOLKRRGV PDQ\ ¿VKHU IRON FRPPXQLWLHV KDYH EHHQ SDUWLFXODUO\ YRFDO LQ WKHLU RSSRVLWLRQ WR WKH SURSRVDOV WR UHVHWWOH WKHP LQ QHZ DV RI \HW XQEXLOW KRXVLQJ HVWDWHV PDQ\ RI ZKLFK DUH ORFDWHG IDU IURP WKH VHD LQ VRPH LQVWDQFHV XS WR NP IURP WKH FRDVWOLQH 2Q WKH RWKHU KDQG WKHUH DUH WKRVH ¿VKHUPHQ ZKR PD\ ZLVK WR FKDQJH WKHLU RFFXSDWLRQ DQG GRPLFLOH IROORZLQJ WKH 7VXQDPL 7KHVH GLIIHULQJ ZLVKHV QHHG WR EH WDNHQ LQWR DFFRXQW E\ ZKDWHYHU HYHQWXDO ODZ LV DGRSWHG FRQFHUQLQJ UHVLGHQWLDO ULJKWV ZLWKLQ WKH P ]RQH DQG HYHU\ HIIRUW VKRXOG EH PDGH WR HQVXUH WKDW WKH GRFWULQH RI YROXQWDULQHVV UDWKHU WKDQ FRHUFLRQ JXLGHV WKH SURFHVV ,I WKH P UXOH LV GHWHUPLQHG WR GLVSURSRUWLRQDWHO\ XQUHDVRQDEO\ RU LQHTXLWDEO\ LPSDFW XSRQ WKH ULJKWV RI ¿VKHU IRON FRPPXQLWLHV GLVFULPLQDWLRQ ZLOO KDYH RFFXUUHG DQG ZLOO QHHG WR EH UHFWL¿HG
BBBBBBBBBBBB
7KHUHIRUH DQ\ UHPRYDO RI UHVLGHQWV IURP LQIRUPDO VHWWOHPHQWV WKDW LV RFFXSLHG ± HYHQ LI GLVWXUEHG WHPSRUDULO\ IRU RWKHU UHDVRQV ± PXVW EH IXOO\ MXVWL¿HG 0RUHRYHU WKHUH LV D 6WDWH REOLJDWLRQ WR SURWHFW UHVLGHQWV IURP RWKHU DFWRUV LQWHUIHULQJ ZLWK VHFXULW\ RI WHQXUH DV 6(5$& Y 1LJHULD PDNHV FOHDU $IULFDQ &RPPLVVLRQ RQ +XPDQ DQG 3HRSOHV¶ 5LJKWV 'HFLVLRQ 7KH &RPPLVVLRQ VWDWHG ³>1LJHULD¶V@ REOLJDWLRQV WR SURWHFW REOLJHV LW WR SUHYHQW WKH YLRODWLRQ RI DQ\ LQGLYLGXDO¶V ULJKW WR KRXVLQJ E\ DQ\ RWKHU LQGLYLGXDO RU QRQ VWDWH DFWRUV OLNH ODQGORUGV SURSHUW\ GHYHORSHUV DQG ODQG RZQHUV DQG ZKHUH VXFK LQIULQJHPHQWV RFFXU LW VKRXOG DFW WR SUHFOXGH IXUWKHU GHSULYDWLRQV DV ZHOO DV JXDUDQWHHLQJ DFFHVV WR OHJDO UHPHGLHV ´
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3KRWR &2+5(
7U\LQJ WR UHEXLOG WKHLU OLYHV 7VXQDPL VXUYLYRUV 6UL /DQND 0DUFK
6HFRQGO\ DQG VLPLODU WR WKH FDVH RI ¿VKHU IRON FRPPXQLWLHV FRDVWDO 0XVOLPV PDQ\ RI ZKRP DUH DOVR ¿VKHU IRON VXIIHUHG E\ IDU WKH ODUJHVW QXPEHU RI FDVXDOWLHV DV D UHVXOW RI WKH 7VXQDPL 2QH DQDO\VW QRWHG WKDW DOWKRXJK 0XVOLPV FRQVWLWXWH VRPH RI 6UL /DQND¶V SRSXODWLRQ RI WKH 7VXQDPL GHDWKV ZHUH 0XVOLP 2QFH DJDLQ WKH VDPH SULQFLSOHV VKRXOG EH DSSOLHG WR WKLV JURXS DV WR ¿VKHU IRON FRPPXQLWLHV PRUH EURDGO\ ,Q RWKHU ZRUGV GRHV WKH P SODQ GLVSURSRUWLRQDWHO\ LPSDFW XSRQ WKH 0XVOLP FRPPXQLW\" 7KH WKLUG SRLQW FRQFHUQV WKH HPRWLYH LVVXH RI ZK\ KRWHOV WRXULVW RULHQWHG HVWDEOLVKPHQWV DQG XQGDPDJHG EXLOGLQJV PDQ\ RI ZKLFK DUH RZQHG E\ ZHDOWK\ 6UL /DQNDQV RU IRUHLJQHUV ZLOO EH H[HPSWHG IURP WKH P UXOH ZKLOH IRUPHU UHVLGHQWV ± PDQ\ RI ZKRP DUH DV ORFDWLRQ GHSHQGHQW IRU WKHLU OLYHOLKRRGV DV WRXULVW EXVLQHVVHV ±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¿VKHU IRON FRPPXQLWLHV 7KH 8QQHFHVVDU\ 3URORQJLQJ RI 'LVSODFHPHQW $ IXUWKHU FRQFHUQ ZLWK WKH P SURSRVDOV LV WKH LPSDFW VXFK D PHDVXUH ZLOO KDYH RQ XQQHFHVVDULO\ SURORQJLQJ WKH SHULRG RI GLVSODFHPHQW RI WKRVH ZKR ZLOO EH SUHYHQWHG IURP UHWXUQLQJ KRPH $OWKRXJK WKH *RYHUQPHQW KDV LVVXHG PDQ\ SXEOLF FRPPLWPHQWV WR UH KRXVLQJ WKH GLVSODFHG LQ SDUWLFXODU WKRVH ZKR OLYHG ZLWKLQ WKH P ]RQH DW WKH WLPH RI WKH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
7VXQDPL LW LV FOHDU WKDW HYHQ LQ WKH EHVW SRVVLEOH VFHQDULRV ZKLFK ZRXOG SUHVXPH WKDW DOO DQWLFLSDWHG IXQGV DUH DYDLODEOH DQG WKDW DOO SURPLVHG KRXVLQJ ZLOO DFWXDOO\ EH EXLOW LW ZLOO EH \HDUV UDWKHU WKDQ PRQWKV EHIRUH DOO RI WKH GLVSODFHG ¿QG SHUPDQHQW KRXVLQJ VROXWLRQV 7KH SURSRVHG P SODQ KDV HIIHFWLYHO\ H[FOXGHG DOO IRUPHU UHVLGHQWV RI WKH EXIIHU ]RQH DUHD IURP UHEXLOGLQJ WKHLU KRPHV DQG OLYHOLKRRGV RQ RU QHDU WR WKH ODQG RQ ZKLFK WKH\ OLYHG RQ 'HFHPEHU 7KH GLVSODFHG DUH QRW DEOH WR DFFHVV KRXVLQJ ORDQV RU FUHGLWV DW WKH PRPHQW ,Q DGGLWLRQ WKH\ DUH QRW JLYHQ SODQQLQJ SHUPLVVLRQ WR UHEXLOG WKHLU KRPHV DQG DUH HVVHQWLDOO\ IRUFHG WR ZDLW XQWLO QHZ KRXVLQJ LV SURYLGHG WR WKHP 2I¿FLDOV KDYH VDLG WKDW WHPSRUDU\ VWUXFWXUHV PD\ EH WROHUDWHG LQ WKH VKRUW WHUP ZLWKLQ WKH ]RQH DV DQ HPHUJHQF\ PHDVXUH +RZHYHU UHSRUWV RI HYLFWLRQV DQG GHPROLWLRQV RI VXFK VWUXFWXUHV KDYH DOVR HPHUJHG LQ UHFHQW ZHHNV ,Q WKLV UHJDUG DQ DGGLWLRQDO KXPDQ ULJKWV SULQFLSOH ± WKH ULJKW WR UHVSHFW IRU WKH KRPH ± LV UHOHYDQW 7KH WHUP µKRPH¶ KDV EHHQ GH¿QHG RQ WKH EDVLV RI RFFXSDQF\ DQG QRW SURSULHWDU\ LQWHUHVW $ KRPH LV WKH SODFH D SHUVRQ OLYHV RQ D VHWWOHG EDVLV ZKLFK LPSOLHV D GHJUHH RI VWDELOLW\ DQG FRQWLQXLW\ $Q\ LQWHUUXSWLRQ RI RFFXSDQF\ ± HYHQ IRU D ORQJ SHULRG ±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¶V 1RWLFH RQ 5HFRQVWUXFWLRQ IRU +RXVLQJ %XVLQHVVHV )LVKLQJ ,QGXVWU\ $IIHFWHG E\ WKH 7VXQDPL RQ )HEUXDU\ QRWHG WKDW ³$OO IDPLOLHV LQ WKH P DQG P &RDVWDO =RQH ZKRVH KRXVHV KDYH EHHQ FRPSOHWHO\ GDPDJHG ZLOO EH SURYLGHG ZLWK VDIH KRXVHV RXWVLGH WKH &RQVHUYDWLRQ =RQH E\ WKH *RYHUQPHQW 7KRVH ZKR DUH ZLOOLQJ WR FRQVWUXFW WKHLU RZQ KRXVHV RXWVLGH WKH P DQG P ]RQH RQ WKHLU ODQGV ZLOO EH SDLG 5V > 86 @ LQ ¿QDQFLDO DVVLVWDQFH DQG LI QHFHVVDU\ FRQFHVVLRQDU\ ORDQV E\ VWDWH EDQNV ´ :LWK VSHFL¿F UHJDUG WR ¿VKLQJ FRPPXQLWLHV ZKLFK FRQVWLWXWH E\ IDU WKH ODUJHVW JURXS RI GLVSODFHG SHUVRQV DQG WKXV BBBBBBBBBBBB
,Q RQH LQVWDQFH VHYHUDO GD\V IROORZLQJ WKH GLVDVWHU WKH 3UHVLGHQW DVVHUWHG WKDW QHZ KRXVLQJ ZRXOG EH SURYLGHG WR DOO GLVSODFHG ZLWKLQ WKUHH PRQWKV HJ E\ 0DUFK 7KLV ULJKW LV IRXQG LQ QXPHURXV WUHDWLHV LQFOXGLQJ $UWLFOH RI WKH ,&&35 ZKLFK UHDGV ³1R RQH VKDOO EH VXEMHFWHG WR DUELWUDU\ RU XQODZIXO LQWHUIHUHQFH ZLWK KLV SULYDF\ IDPLO\ KRPH RU FRUUHVSRQGHQFH QRU WR XQODZIXO DWWDFNV RQ KLV KRQRXU DQG UHSXWDWLRQ ´ >(PSKDVLV DGGHG@ 6HH :LJJLQV Y 8 . '5 $ VWUXFWXUH FRQVWUXFWHG LQIRUPDOO\ EXW IRU UHVLGHQWLDO SXUSRVHV ZRXOG WKHUHIRUH IDOO ZLWKLQ WKH UHDFK RI WKLV ULJKW 7KH &RXUW KDV UXOHG WKDW LQIRUPDO VWUXFWXUHV GR FRQVWLWXWHV KRPHV ± IRU H[DPSOH FDUDYDQV RQ ODQG ZLWKRXW SODQQLQJ SHUPLVVLRQ DQG WKDW DQ\ LQWHUIHUHQFH ZLWK VXFK D KRPH PXVW EH SURSRUWLRQDO DQG SXUVXH D OHJLWLPDWH DLP LQ DFFRUGDQFH ZLWK WKH (XURSHDQ &RQYHQWLRQ RQ +XPDQ 5LJKWV *LOORZ Y 8QLWHG .LQJGRP 6HULHV $ 1R (+55 (+55 &' 7KLV REMHFWLYH ZRXOG EH FRQVLVWHQW ZLWK $UWLFOH F RI WKH 6UL /DQND &RQVWLWXWLRQ ZKLFK SURYLGHV ³7KH 6WDWH LV SOHGJHG WR HVWDEOLVK LQ 6UL /DQND D GHPRFUDWLF VRFLDOLVW VRFLHW\ WKH REMHFWLYHV RI ZKLFK LQFOXGHV WKH UHDOLVDWLRQ E\ DOO FLWL]HQV RI DQ DGHTXDWH VWDQGDUG RI OLYLQJ IRU WKHPVHOYHV DQG WKHLU IDPLOLHV LQFOXGLQJ DGHTXDWH IRRG FORWKLQJ DQG KRXVLQJ WKH FRQWLQXRXV LPSURYHPHQW RI OLYLQJ FRQGLWLRQV DQG WKH IXOO
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
WKRVH LQ JUHDWHVW QHHG WKH *RYHUQPHQW KDV LQGLFDWHG WKDW LW ZLOO SURYLGH KRXVLQJ IRU ³HYHU\ ¿VKHU IDPLO\ ZKR ORVW KRXVHV LQ WKH GLVDVWHU´ 7KH PLQLPXP VL]H RI D KRXVH ZLOO EH VT IW DQG ZLOO EH SURYLGHG ZLWK DOO WKH EDVLF LQIUDVWUXFWXUH IDFLOLWLHV VXFK DV DFFHVV URDGV ZDWHU HOHFWULFLW\ DQG VHZHUDJH )RXU KRXVLQJ W\SHV KDYH EHHQ UHFRPPHQGHG VLQJOH VWRUH\ GHWDFKHG KRXVHV RQ LQGLYLGXDO ODQG SORWV VLQJOH VWRUH\ DWWDFKHG KRXVHV ZLWK LQGLYLGXDO JDUGHQV WZR VWRUH\ DWWDFKHG WHUUDFHG KRXVHV ZLWK LQGLYLGXDO JDUGHQV DQG PXOWL VWRUH\ ZDON XS DSDUWPHQWV 7KH QHHG IRU QHZ KRXVLQJ VWRFN DV D UHVXOW RI WKH 7VXQDPL LV QRWKLQJ VKRUW RI GUDPDWLF ,Q -DQXDU\ WKH :RUOG %DQN HVWLPDWHG WKDW RYHU KRXVHV ZHUH GDPDJHG RU GHVWUR\HG DQG WKDW ¿QDQFLDO ORVVHV ZHUH LQ WKH UDQJH RI 86 PLOOLRQ ZLWK ¿QDQFLQJ QHHGV IRU QHZ KRXVLQJ FRQVWUXFWLRQ UDQJLQJ IURP 86 PLOOLRQ $OWKRXJK WKH *RYHUQPHQW KDV PDGH UHSHDWHG SXEOLF SURQRXQFHPHQWV FRPPLWWLQJ LWVHOI WR WKH SURYLVLRQ RI QHZ KRXVLQJ IRU WKH KRPHOHVV DQG GLVSODFHG WKH SURFHVV OHDGLQJ IURP WKHVH FOHDUO\ SRVLWLYH VWDWHPHQWV RI LQWHQW WR DFWXDO KRXVLQJ SURYLVLRQ LV OLNHO\ WR EH IDU PRUH FKDOOHQJLQJ WKDQ PD\ EH LPDJLQHG DW SUHVHQW $ QXPEHU RI OLNHO\ SUREOHPV DQG FRQFHUQV FDQ EH DQWLFLSDWHG ,QVXI¿FLHQW &RPPXQLW\ 3DUWLFLSDWLRQ DQG &RQVXOWDWLRQ 2I DOO WKH FRQFHUQV WKDW KDYH DULVHQ VR IDU LQ WKH UH KRXVLQJ SURFHVV WKH SUHYDLOLQJ ODFN RI FRPPXQLW\ SDUWLFLSDWLRQ DQG FRQVXOWDWLRQ KDV EHHQ RQH RI WKH PRVW SUHVVLQJ 7KH *RYHUQPHQW¶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
6HH :RUOG %DQN HW DO 1HHGV $VVHVVPHQW -DQ ,Q DGGLWLRQ D IXUWKHU 86 PLOOLRQ ZLOO EH UHTXLUHG IRU UHODWHG ZDWHU DQG VDQLWDWLRQ ¿QDQFLQJ QHHGV ³([SHULHQFH IURP *XMDUDW DQG 7XUNH\ UXUDO DV ZHOO DV &RORPELD DQG 0H[LFR LQ SRVW GLVDVWHU UHFRQVWUXFWLRQ LQGLFDWHV WKDW WR WKH H[WHQW SRVVLEOH WKH PRVW IHDVLEOH DQG VXVWDLQDEOH RSWLRQ LV LQ VLWX UHFRQVWUXFWLRQ PDQDJHG E\ DIIHFWHG KRXVHKROGV DVVLVWHG E\ D FRPELQDWLRQ RI FDVK JUDQWV DQG DFFHVV WR ORDQV 6UL /DQND¶V RZQ H[SHULHQFH ZLWK KRXVLQJ UHFRQVWUXFWLRQ DIWHU ODUJH VFDOH Ã&#x20AC;RRGLQJ LQ WKH 6RXWKHUQ 3URYLQFH ZKHUH DURXQG KRXVHV DUH FXUUHQWO\ EHLQJ DVVLVWHG WKURXJK FDVK JUDQWV DQG OHVVRQV OHDUQHG GXULQJ WKH SUHSDUDWLRQ RI WKH :RUOG %DQN VXSSRUWHG 1RUWK (DVW +RXVLQJ 5HFRQVWUXFWLRQ 3URMHFW 1(+53 DQG LWV UHODWHG SLORW SURMHFW VXSSRUW WKH UDWLRQDOH DQG IHDVLELOLW\ IRU DGRSWLQJ VXFK DQ DSSURDFK ´ :RUOG %DQN 1HHGV $VVHVVPHQW S ± $QQH[ ± +RXVLQJ
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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¿FLDOV DQG RWKHUV LQ WKH EXLOGLQJ LQGXVWU\ 7KH $FFXUDF\ RI +RXVLQJ 'HVWUXFWLRQ DQG 'DPDJH (VWLPDWHV $QRWKHU FRQFHUQ UHODWHV WR WKH FRQVLGHUDEOH GLVSDULW\ EHWZHHQ WKH YDULRXV HVWLPDWHV RI KRXVLQJ GDPDJH DQG GHVWUXFWLRQ :KLOH VXFK YDULDWLRQV DUH WR EH H[SHFWHG LQ WKH DIWHUPDWK RI VXFK D GLVDVWHU WKH SROLF\ LPSOLFDWLRQV RI WKHVH GLYHUJHQFHV DUH FRQVLGHUDEOH 7KH *RYHUQPHQW LV SODQQLQJ WR EXLOG RU IDFLOLWDWH WKH FRQVWUXFWLRQ RI VRPH QHZ KRXVLQJ XQLWV 7KH\ KDYH EDVHG WKLV ¿JXUH RQ GDPDJH HVWLPDWHV ZKLFK UDQJH IURP WR DOPRVW KRXVHV 7KH 'HSDUWPHQW IRU 1DWLRQDO 3ODQQLQJ DQG 0LQLVWU\ RI )LQDQFH DQG 3ODQQLQJ IRU LQVWDQFH FODLPV WKDW ³DURXQG KRXVHV KDYH EHHQ IXOO\ RU SDUWLDOO\ GHVWUR\HG LQFOXGLQJ ¿VKHUPDQ KRPHV´ 7KH FRQVLGHUDEOH JDS EHWZHHQ WKH *RYHUQPHQW¶V SURMHFWHG KRXVLQJ FRQVWUXFWLRQ SODQV DQG GDPDJH DVVHVVPHQWV PD\ EH H[SODLQHG E\ SURMHFWLRQV RI VHOI EXLOW KRXVLQJ DFWLYLWLHV ¿OOLQJ WKH JDS ,W LV QRW FOHDU KRZHYHU WKDW WKH UHFRQVWUXFWLRQ SROLF\ DV LW QRZ VWDQGV QHFHVVDULO\ PDWFKHV WKH FXUUHQW KRXVLQJ GH¿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³86 PLOOLRQ LV HDUPDUNHG IRU WKH UHKDELOLWDWLRQ DQG UHFRQVWUXFWLRQ RI KRXVLQJ´ 7KRXJK D FRQVLGHUDEOH VXP WKLV IDOOV IDU VKRUW RI WKH PRUH WKDQ 86 PLOOLRQ UHTXLUHG WR ¿QDQFH KRXVLQJ IRU DOO GLVSODFHG SHUVRQV DQG FRPPXQLWLHV &ODUL¿FDWLRQ LV DOVR QHHGHG RQ WKLV LVVXH BBBBBBBBBBBB
$FFRUGLQJ WR WKH :RUOG %DQN¶V 1HHGV $VVHVVPHQW ³,I SHUPDQHQW KRXVLQJ LV WR EH FRQVWUXFWHG LQ QHZ DUHDV WR LPSURYH KRXVLQJ VWDQGDUG DQG VDIHW\ WKH SULQFLSOH RI VHOI UHORFDWLRQ VKRXOG EH IROORZHG 7KH DIIHFWHG SRSXODWLRQ VKRXOG EH JLYHQ ¿QDQFLDO DQ WHFKQLFDO VXSSRUW WR FKRRVH ORFDWLRQV DQG KRXVLQJ EDVHG RQ WKHLU RZQ SUHIHUHQFHV´ S DQQH[
'HSDUWPHQW RI 1DWLRQDO 3ODQQLQJ 0LQLVWU\ RI )LQDQFH DQG 3ODQQLQJ -DQXDU\ 5HEXLOGLQJ WKH 7VXQDPL $IIHFWHG $UHD S
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
+RXVLQJ $OORFDWLRQ 3URFHGXUHV :KLOH WKH SXEOLF FRPPLWPHQWV LVVXHG E\ WKH *RYHUQPHQW WR HQVXUH KRXVLQJ IRU DOO RI WKH GLVSODFHG DUH WR EH FRPPHQGHG WKH DFWXDO DOORFDWLRQ SURFHGXUHV RI QHZ KRXVLQJ WR WKH GLVSODFHG UHTXLUH FORVHU H[DPLQDWLRQ $V QRWHG WKRVH ZKRVH KRPHV ZHUH ZLWKLQ WKH P ]RQH KDYH EHHQ SURPLVHG QHZ KRPHV RXWVLGH WKH ]RQH 0DQ\ RI¿FLDOV KDYH LQGLFDWHG WKDW ODQG QHDUHVW WR WKH FRDVW ZLOO EH UHVHUYHG IRU ¿VKHU IRON FRPPXQLWLHV LI VXFK ODQGV DUH DYDLODEOH 7KH *RYHUQPHQW KDV LQGLFDWHG WKDW WKRVH ZKR DUH ZLOOLQJ WR FRQVWUXFW WKHLU RZQ KRXVHV RXWVLGH P P ]RQH ZLOO EH SURYLGHG ZLWK ODQGV ¿QDQFLDO DVVLVWDQFH DQG FRQFHVVLRQDU\ ORDQV E\ 6WDWH EDQNV )RU WKRVH ZLWKRXW DFFHVV WR VXFK ODQGV ORFDO RI¿FLDOV ZLOO SUHSDUH SULRULW\ OLVWV RI ZKR ZLOO UHFHLYH QHZ KRXVLQJ ,W ZLOO EH DW WKLV OHYHO WKHUHIRUH WKDW WKRVH ZKR DUH SUHYHQWHG IURP UHWXUQLQJ WR WKHLU IRUPHU KRPHV ZLWKLQ P EXIIHU ]RQHV ZLOO EH DOORFDWHG QHZ SODFHV RI UHVLGHQFH $W D VXSHU¿FLDO OHYHO WKLV SURFHGXUH IRU KRXVLQJ DOORFDWLRQ PD\ DSSHDU DSSURSULDWH WR WKH QHHGV DW KDQG +RZHYHU LW FOHDUO\ GRHV QRW DSSO\ D ULJKWV EDVHG DSSURDFK WR WKLV TXHVWLRQ QRU GRHV LW SURYLGH WKH WUDQVSDUHQF\ DQG DFFRXQWDELOLW\ WKDW ZRXOG QRUPDOO\ EH H[SHFWHG IURP VXFK SURFHGXUHV 7KH DPELJXRXV QDWXUH RI WKH SURFHGXUH WKH KLJKO\ SROLWLFLVHG QDWXUH RI LW DQG WKH DEVHQFH RI DQ\ OHJDO SURFHVV HQDEOLQJ SHUVRQV DQG FRPPXQLWLHV LQ KRXVLQJ QHHG WR FODLP VXFK JRRGV LQ DQ RI¿FLDO IRUPDO DQG REMHFWLYH PDQQHU QHHG WR EH DGGUHVVHG 0RUHRYHU WKH SRZHU YHVWHG LQ ORFDO RI¿FLDOV LQ DQ HQYLURQPHQW RI H[WUHPH KRXVLQJ VFDUFLW\ FUHDWHV VLWXDWLRQV ULSH IRU XQIDLU DUELWUDU\ WUHDWPHQW RI WKRVH LQ QHHG RI QHZ KRXVLQJ DQG HQWLFLQJ RSSRUWXQLWLHV IRU IUDXGXOHQW HQULFKPHQW
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
5()/(&7,21 21 620( ,1129$7,9( 62/87,216 $1' 7+( :$< )25:$5'
,QWURGXFWLRQ +DYLQJ UHYLHZHG D VHOHFWLRQ RI WKH IRUFHG HYLFWLRQ FDVHV VXEPLWWHG WR $*)( IRU FRQVLGHUDWLRQ DQG DFWLRQ DQG KDYLQJ UHSRUWHG RQ WKRVH FDVHV ZKHUH $*)( ZDV DEOH WR FRQGXFW PLVVLRQV ZH ZLVK WR FRQFOXGH WKLV UHSRUW ZLWK UHÃ&#x20AC;HFWLRQ RQ H[LVWLQJ DQG SRVVLEOH LQQRYDWLYH VROXWLRQV IRU UHVROYLQJ IRUFHG HYLFWLRQV DQG WKH ZD\ IRUZDUG 7KH LVVXHV DQG FKDOOHQJHV DUH FOHDUO\ YHU\ FRPSOH[ DQG QR GH¿QLWLYH DQVZHUV DUH UHDGLO\ DYDLODEOH 7KLV FKDSWHU LV WKHUHIRUH SUHVHQWHG E\ WKH $*)( &RQYHQRU DV D ¿UVW GUDIW IRU FRQVLGHUDWLRQ DQG IXUWKHU GLVFXVVLRQ ZLWKLQ $*)( 81 +$%,7$7 DQG WKH H[SDQGLQJ DQWL HYLFWLRQV QHWZRUN
6ROXWLRQV GR H[LVW 6ROXWLRQV DQG LQQRYDWLYH SUDFWLFHV GR H[LVW WR DYHUW IRUFHG HYLFWLRQV DQG UHGXFH H[LVWLQJ WKUHDWV 8QIRUWXQDWHO\ SRVLWLYH DSSURDFKHV DUH VHOGRP UHFRJQLVHG DQG DUH FRQVHTXHQWO\ LQVXI¿FLHQWO\ GRFXPHQWHG $V RQH RI WKH $*)( PHPEHUV H[SUHVVHG GXULQJ WKH :RUOG 8UEDQ )RUXP VHVVLRQ RQ IRUFHG HYLFWLRQV ³:KR NQRZV DERXW WKH FLW\ RI ,OR LQ 3HUX ZKHUH HYLFWLRQV GR QRW RFFXU PDLQO\ EHFDXVH RI YHU\ LQQRYDWLYH SROLFLHV" :KDW GR ZH NQRZ DERXW WKH SUHYHQWLYH PHDVXUHV DQG WKH SROLFLHV WKDW KDYH EHHQ VXFFHVVIXO LQ HOLPLQDWLQJ IRUFHG HYLFWLRQV"´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
%H\RQG WKH OHJDO GLPHQVLRQ RI HYLFWLRQV )RUFHG HYLFWLRQ LV D PXOWLGLPHQVLRQDO SUREOHP ZLWK OHJDO VRFLDO SROLWLFDO LQVWLWXWLRQDO DQG HFRQRPLF GLPHQVLRQV ,QQRYDWLYH VROXWLRQV DV GLVFXVVHG LQ WKLV FKDSWHU DUH XVXDOO\ WKRVH WKDW KDYH EHHQ DEOH WR DGGUHVV DOO WKHVH GLPHQVLRQV LQ D VLPXOWDQHRXVO\ VWUDWHJLF DQG WDFWLFDO PDQQHU ,Q HDFK VLWXDWLRQ WKH FRPELQDWLRQ RI WKHVH HOHPHQWV LV TXLWH XQLTXH DQG WKDW LV ZK\ WKH VROXWLRQV BBBBBBBBBBBB
'DYLG 6DWWHUWKZDLWH VSHDNLQJ DW WKH $*)( 1HWZRUNLQJ (YHQW :RUOG 8UEDQ )RUXP %DUFHORQD 6HSWHPEHU
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
DUH ORFDO DQG UHTXLUH D FDVH E\ FDVH XQGHUVWDQGLQJ ,Q 6DQWR 'RPLQJR IRU LQVWDQFH DW WKH WLPH RI WKH PLVVLRQ¶V YLVLW WKH HFRQRPLF DQG SROLWLFDO GLPHQVLRQV ZHUH TXLWH GHWHUPLQDQW DQG KDG WR EH DGGUHVVHG DV SULRULWLHV 7KH VLWXDWLRQ LQ 5RPH ZDV GLIIHUHQW LQ WKH VHQVH WKDW WKH VRFLDO GLPHQVLRQ DQG WKH OHJDO IUDPHZRUN ZHUH WKH SULRULWLHV
:KR DUH WKH NH\ DFWRUV EULQJLQJ DERXW LQQRYDWLYH VROXWLRQV" 7KH FDVHV LQGLFDWH WKDW ZKHQ FRPPXQLWLHV DUH ZHOO RUJDQLVHG HVSHFLDOO\ WKUHDWHQHG RQHV HYLFWLRQV FDQ EH DYHUWHG ,Q DGGLWLRQ DFFRUGLQJ WR HDFK VSHFL¿F VLWXDWLRQ ORFDO DQG FHQWUDO JRYHUQPHQWV DQG DGYLVRU\ JURXSV 1*2V DUH FUXFLDO SDUWLHV LQ ¿QGLQJ WKH DSSURSULDWH VROXWLRQ :KHQ WKHVH GLIIHUHQW DFWRUV DUH DEOH WR HVWDEOLVK GLDORJXH VLW GRZQ WRJHWKHU DQG ORRN IRU RSWLRQV WR UHVROYH D SDUWLFXODU FDVH VROXWLRQV DUH XVXDOO\ IRXQG ,QLWLDWLYHV UHODWHG WR HDFK RI WKH DFWRUV ZLOO EH H[DPLQHG LQ WKLV DQDO\VLV RI WKHLU UROHV DQG FRQWULEXWLRQV WR WKH UHVROXWLRQ RI HYLFWLRQ UHODWHG PDWWHUV
2UJDQLVHG FRPPXQLWLHV 7KH H[SHULHQFH RI 6DQWR 'RPLQJR FOHDUO\ LQGLFDWHV WKDW QHLJKERXUKRRGV RUJDQLVHG E\ ODUJH JUDVVURRWV IHGHUDWLRQV VXFK DV &23$'(%$ RU &83 KDYH EHWWHU UHVLVWHG IRUFHG HYLFWLRQV LQ WKH SDVW \HDUV WKDQ LVRODWHG DQG QRQ RUJDQLVHG GLVWULFWV ,Q &XULWLED WKH ORFDO VHFWLRQ RI WKH 1DWLRQDO 0RYHPHQW IRU +RXVLQJ 6WUXJJOH LQ FORVH FROODERUDWLRQ ZLWK VHFWRUV IURP WKH &DWKROLF &KXUFK VSHDUKHDGHG SURSRVDOV WR WKH ORFDO JRYHUQPHQW ,Q &KLQD DQG ,WDO\ 7HQDQWV $VVRFLDWLRQV VXFK DV WKH 7HQDQW¶V 5LJKWV 0RYHPHQW RU WKH 8QLRQH ,QTXLOLQL SURSRVHG SRVLWLYH VROXWLRQV ,Q 1HZ <RUN VLQFH SXEOLF KRXVLQJ UHVLGHQWV KDYH XQLWHG WR IRUP WKH µ1HZ <RUN &LW\ 3XEOLF +RXVLQJ 5HVLGHQW $OOLDQFH¶ D FLW\ZLGH RUJDQLVDWLRQ RI FRQFHUQHG SXEOLF KRXVLQJ UHVLGHQWV VHHNLQJ WR LPSURYH KRPHV DQG FRPPXQLWLHV ,Q HDFK FDVH WKH RUJDQLVDWLRQV LQYROYHG LQ WKH SURFHVV DUH GLIIHUHQW DQG DFW GLIIHUHQWO\ ,Q DGGLWLRQ WR WKH FDVHV GRFXPHQWHG E\ $*)( H[LVWLQJ OLWHUDWXUH GHPRQVWUDWHV WKDW ZHOO RUJDQLVHG FRPPXQLWLHV VWURQJ PRELOLVDWLRQ DQG SHRSOH GULYHQ SURFHVVHV DUH FULWLFDO NH\V WR ¿QGLQJ SRVLWLYH ZD\V RXW RI IRUFHG HYLFWLRQV 6XFFHVVIXO SURFHVVHV RFFXU ZKHQ D WKUHDWHQHG FRPPXQLW\ RUJDQLVHV LWVHOI UHOLHV RQ LWV RZQ VWUHQJWK DQG JUDGXDOO\ JHWV VXSSRUW DW QDWLRQDO DQG LQWHUQDWLRQDO OHYHOV 7KH H[SHULHQFH RI WKH 7DPER *UDQGH FRPPXQLW\ LQ 3HUX LV TXLWH LOOXVWUDWLYH RI VXFK D SURFHVV 7KH 7DPER *UDQGH FRPPXQLW\ OLYHV LQ D VPDOO YLOODJH LQ D ULFK DJULFXOWXUDO YDOOH\ RI 1RUWKHUQ 3HUX ,W FRPSULVHV DURXQG KRXVHV ,Q WKH YLOODJHUV ZHUH DEOH WR VWRS DQ LPPLQHQW BBBBBBBBBBBB
6HH IRU H[DPSOH WKH VSHFLDO LVVXH RI (QYLURQPHQW DQG 8UEDQLVDWLRQ RQ HYLFWLRQV DQG WKH SXEOLFDWLRQV RI 6OXP 6KDFN 'ZHOOHUV ,QWHUQDWLRQDO WKH $VLDQ &RDOLWLRQ IRU +RXVLQJ 5LJKWV WKH ,QWHUQDWLRQDO $OOLDQFH RI ,QKDELWDQWV &2+5( DQG RWKHUV $OVR VHH GX 3OHVVLV - ³7KH JURZLQJ SUREOHP RI IRUFHG HYLFWLRQV DQG WKH FUXFLDO LPSRUWDQFH RI FRPPXQLW\ EDVHG ORFDOO\ DSSURSULDWH DOWHUQDWLYHV´ IRUWKFRPLQJ LQ (QYLURQPHQW DQG 8UEDQLVDWLRQ ,,('
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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¿QDOO\ LQ WKH FDSLWDO FLW\ RI /LPD 7KH YLOODJHUV RUJDQLVHG WKHPVHOYHV LQWR D µ'HIHQFH )URQW¶ WR FODLP WKHLU ULJKWV DQG ZHUH JUDGXDOO\ DEOH WR PRELOLVH QRW RQO\ RWKHU QHLJKERXULQJ FRPPXQLWLHV EXW DOVR D YHU\ EURDG VHW RI DFWRUV VXFK DV FRQJUHVVPHQ SROLWLFDO SDUW\ OHDGHUV WKH FKXUFK DUWLVWV DQG LQWHOOHFWXDOV $V D FRQVHTXHQFH RI WKLV PRELOLVDWLRQ D PXOWL DFWRU 7HFKQLFDO 6XSSRUW *URXS ZDV HVWDEOLVKHG DQG HPSRZHUHG WR ¿QG DSSURSULDWH VROXWLRQV $V D UHVXOW DQ DOUHDG\ H[LVWLQJ ODZ UHJXODWLQJ PLQLQJ FRQFHVVLRQV RQ XUEDQ DUHDV /DZ ZDV XVHG WR FDQFHO WKH UHQHZDO RI WKH FRQFHVVLRQ WR 00& 7KLV FRQFOXGHG WKH FDVH WR WKH EHQH¿W RI WKH FRPPXQLW\
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³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¶V LQIRUPDWLRQ´ 7KH NH\ HOHPHQWV IRU KDOWLQJ WKH HYLFWLRQ WKUHDW ZDV WKH DFWLYH LQYROYHPHQW RI D ORFDO SDUWQHU &(3,/ DQG WKH SURYLVLRQ RI GHWDLOHG OHJDO LQIRUPDWLRQ RQ WKH SURKLELWLRQ RI IRUFHG HYLFWLRQV DQG RQ WKH OHJDO REOLJDWLRQV RI WKH *RYHUQPHQW RI *KDQD LQ WKLV UHJDUG 7KH IXWXUH VXFFHVVIXO UHVROXWLRQ RI WKH FDVH LQ WKH FRPPXQLW\¶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
$IUDP 3ODLQ 'LVWULFW *KDQD $*)( 5HSRUWV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
,Q WKH .DPSDOD &LW\ &RXQFLO WKUHDWHQHG ZLWK HYLFWLRQ WKH UHVLGHQWV RI WKH WZR QHLJKERXUKRRGV &2+5( VXEPLWWHG D SURWHVW OHWWHU WR WKH *RYHUQPHQW RI 8JDQGD WKH .DPSDOD &LW\ &RXQFLO DQG 0HPEHUV RI 3DUOLDPHQW RI WKH &RPPLWWHH WKDW QHHGHG WR DSSURYH WKH HYLFWLRQV $W WKH VDPH WLPH &2+5( SURYLGHG 0HPEHUV RI 3DUOLDPHQW ZLWK WKH OHJDO DUJXPHQWV WKDW DOORZHG WKHP WR VXEVWDQWLDWH WKHLU PRWLYDWLRQ DV WR ZK\ WKH HYLFWLRQ VKRXOG QRW EH DSSURYHG ³7KH SURWHVW OHWWHU ODWHU DSSHDUHG RQ D *RYHUQPHQW ZHEVLWH LQGLFDWLQJ WKDW WKH *RYHUQPHQW XVHG RXU DUJXPHQWV WR VXSSRUW WKHLU XOWLPDWH GHFLVLRQ QRW WR DOORZ WKH .DPSDOD &LW\ &RXQFLO WR XQGHUWDNH WKH HYLFWLRQ´ 7KLV FDVH GHPRQVWUDWHV WKDW ZKHQ WKH OHJDO DUJXPHQWV DJDLQVW DQ HYLFWLRQ SURYLGH VXEVWDQWLYH DGYRFDF\ PDWHULDO DQG ZKHQ WKH OHJDO GLPHQVLRQ LV GHWHUPLQDQW WKH DGYLVHUV FDQ SOD\ D FUXFLDO UROH LQ WKH VXFFHVVIXO UHVROXWLRQ RI WKH FDVH
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¶V SRRU DQG ORZHU PLGGOH FODVV JURXSV VXIIHU DV GR RWKHUV LQ WKH UHVW RI WKH UHQWDO VHFWRU LQ )UDQFH IURP D JURZLQJ QXPEHU RI HYLFWLRQV SULPDULO\ GXH WR WKH DFFXPXODWLRQ RI XQSDLG UHQWV 7KH QXPEHU RI HIIHFWLYH HYLFWLRQV GUDPDWLFDOO\ LQFUHDVHG LQ WKH ODVW GHFDGH MXVW DV LQ ,WDO\ 1HZ <RUN DQG HOVHZKHUH 7ZR \HDUV DJR WKH 0D\RU UHVSRQGHG WR WKH VLWXDWLRQ E\ LVVXLQJ D PXQLFLSDO GHFUHH $UUrWp 0XQLFLSDO GHFODULQJ KLV PXQLFLSDOLW\ D µWHUULWRU\ IUHH RI HYLFWLRQV¶ 'HVSLWH WKH IDFW WKDW WKH $GPLQLVWUDWLYH &RXUW LQYDOLGDWHG WKH 'HFUHH YDULRXV RWKHU 0D\RUV LQ )UDQFH GHFLGHG WR VLJQ VLPLODU GHFUHHV 7KLV PRYHPHQW JHQHUDWHG DQ LPSRUWDQW SXEOLF GHEDWH RQ HYLFWLRQV DQG VHUYHG WR VORZ GRZQ HYLFWLRQV 2Q 0DUFK WKH 0D\RU RI %RELJQ\ DJDLQ VLJQHG D GHFUHH WKLV WLPH RUGHULQJ WKDW ³Â&#x2020; 7KH &LW\ RI %RELJQ\ LV GHFODUHG WR EH D ]RQH RI SURWHFWLRQ RI WHQDQWV LQ HFRQRPLF GLI¿FXOW\ Â&#x2020; (YHU\ SURFHHGLQJ IRU HYLFWLRQ RI D WHQDQW RU IDPLO\ PXVW EH SUHFHGHG E\ D QRWLFH WR WKH 6WDWH¶V DXWKRULWLHV DQG WKH &LW\¶V VRFLDO DXWKRULWLHV DQG D PHHWLQJ RI WKRVH DXWKRULWLHV IRU WKH SXUSRVH RI LQLWLDWLQJ D JHQXLQH HIIRUW WR DYRLG WKH HYLFWLRQ RU WR ¿QG DOWHUQDWLYH KRXVLQJ IRU WKH HYLFWHH V
BBBBBBBBBBBB
.DPSDOD &DVH $*)( 5HSRUWV .DPSDOD &DVH $*)( 5HSRUWV 7HVWLPRQ\ RI ORFDO &2+5( FRQWDFW $FFRUGLQJ WR WKH VRFLDO PRYHPHQW '$/ µ'URLW DX /RJHPHQW¶ ± µ5LJKW WR +RXVLQJ¶ DQG $,7(& LQIRUPDWLRQ VHQW WR $*)( RYHU RI WKH IDPLOLHV OLYLQJ LQ UHQWHG KRXVLQJ LQ )UDQFH KDYH VXIIHUHG WKUHDWV RI HYLFWLRQV RYHU WKH ODVW WHQ \HDUV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
Â&#x2020; (YLFWLRQV LQ WKH &LW\ RI %RELJQ\ EDVHG RQ HFRQRPLF FRQVLGHUDWLRQV RU EHFDXVH RI WKH HIIHFWV RI VRFLDO LQVHFXULW\ QRW SUHFHGHG E\ MRLQW HIIRUWV E\ WKH DXWKRULWLHV RI WKH 6WDWH DQG RI WKH &LW\ DV SURYLGHG LQ Â&#x2020; DUH SURKLELWHG Â&#x2020; 6DLG SURFHGXUH RI QRWLFH DQG MRLQW HIIRUWV WR GHYHORS DQ DOWHUQDWLYH WR HYLFWLRQ PXVW EH LPSOHPHQWHG LQ DGYDQFH LQ RUGHU WR SUHYHQW HYLFWLRQV RU WKUHDWV RI HYLFWLRQV LQ WKH FLW\ ´ )RU WKH IXOO WH[W RI WKH GHFUHH VHH $QQH[
7KH UDWLRQDOH IRU WKH FDVH LV EDVHG RQ D ORQJ OLVW RI OHJDO FRQVLGHUDWLRQV FRQVWLWXWLRQDO MXGJPHQWV DQG LQWHUQDWLRQDO FRYHQDQWV VLJQHG E\ WKH JRYHUQPHQW ,W UHIHUV DV ZHOO WR KXPDQ ULJKWV LPSDLUPHQW RI KXPDQ GLJQLW\ MXVWLFH FKLOGUHQ¶V ULJKWV DQG WKH SUHVHUYDWLRQ RI SXEOLF RUGHU $W D QDWLRQDO OHYHO WKLV GHFUHH KDV RSHQHG XS SXEOLF GHEDWH RQ D SROLF\ DQG D ODZ WKDW FRQWUDYHQHV WKH SULQFLSOHV RI VRFLDO MXVWLFH DQG KXPDQ ULJKWV ,W LQLWLDWHG D SUHFHGHQW VHWWLQJ FDVH WR WKH EHQH¿W RI IDPLOLHV WKUHDWHQHG E\ HYLFWLRQV $W WKH VDPH WLPH WKH VRFLDO PRYHPHQW '$/ KDV DUJXHG WKDW WKH HOLPLQDWLRQ RI HYLFWLRQV GRHV QRW GHSHQG RQ GHFUHHV UHJDUGOHVV KRZ SRVLWLYH WKH\ PLJKW EH EXW UDWKHU RQ WKH PRELOLVDWLRQ RI WKH WKUHDWHQHG FRPPXQLWLHV WKHPVHOYHV DQG RQ WKH VROLGDULW\ RI RWKHU H[FOXGHG JURXSV 7KH SRVLWLYH UHVXOW RI WKH H[SHULHQFH LV WKDW HYLFWLRQV LQ %RELJQ\ DQG LQ WKH RWKHU FLWLHV WKDW KDYH VLJQHG VXFK PXQLFLSDO GHFUHHV KDYH VLJQL¿FDQWO\ GHFUHDVHG DQG KDYH EHFRPH WKH H[FHSWLRQ UDWKHU WKDQ WKH UXOH 5HSOLFDWLRQ RI WKH ³HYLFWLRQ IUHH WHUULWRU\´ DSSURDFK ,Q )HEUXDU\ WKH 0D\RU RI %RELJQ\ MRLQHG WKH 81 +DELWDW $*)( PLVVLRQ WR 5RPH 2QH RI WKH LVVXHV WKDW WKH PLVVLRQ GLVFXVVHG ZLWK LQYROYHG DFWRUV DQG WKH 0XQLFLSDOLW\ RI 5RPH ZDV WKH LPSOLFDWLRQV RI GHFODULQJ 5RPH DQ HYLFWLRQ IUHH WHUULWRU\ $V D UHVXOW RI WKHVH PHHWLQJV WKH 0XQLFLSDOLW\ DQG $*)( VLJQHG WKH IROORZLQJ VWDWHPHQW ³:H IRXQG DJUHHPHQW RYHU WKH SURJUDPPDWLF SURSRVDO LQFOXGHG LQ WKH GHOLEHUDWLRQ RYHU KRXVLQJ SROLFLHV LQ WKH 5RPH DUHD ZKLFK ZDV DGRSWHG E\ WKH PXQLFLSDOLW\ JRYHUQPHQW DQG SDUWLFXODUO\ WKH GHFLVLRQ RI WKH 0XQLFLSDO &RXQFLO WR GHFODUH 5RPH DQ µHYLFWLRQV IUHH WHUULWRU\¶ ´ 7KH IXOO WH[W RI WKH VWDWHPHQW LV JLYHQ DV $QQH[ 'XULQJ WKH PLVVLRQ WR WKH 'RPLQLFDQ 5HSXEOLF WKH LVVXH RI DQ µHYLFWLRQ IUHH WHUULWRU\¶ UHFHLYHG KHLJKWHQHG DWWHQWLRQ IURP YDULRXV PD\RUV LQ WKH 6DQWR 'RPLQJR 0HWURSROLWDQ $UHD DQG WKH 1DWLRQDO )HGHUDWLRQ RI 0D\RUV ,W LV OLNHO\ WKDW D E\ ODZ UHVROXFLyQ VLPLODU WR WKDW ZKLFK GHFODUHG %RELJQ\ DQ µHYLFWLRQ IUHH WHUULWRU\¶ ZLOO EH YRWHG IRU E\ WKH 0XQLFLSDOLW\ RI %RFD &KLFD 7KLV E\ ODZ ZLOO EH WKH ¿UVW RI LWV NLQG LQ /DWLQ $PHULFD DQG WKH &DULEEHDQ %H\RQG WKH OHJDO DQG WKH FRQVWLWXWLRQDO GHEDWHV WKHVH GHFUHHV UHÃ&#x20AC;HFW WKH SROLWLFDO ZLOOLQJQHVV RI VRPH HOHFWHG PD\RUV WR XWLOLVH WKHLU SRZHUIXO PDQGDWHV WR DGGUHVV WKH LVVXH RI IRUFHG HYLFWLRQV 7KLV LV SDUWLFXODUO\ LPSRUWDQW DV LQ YDULRXV FDVHV FHUWDLQ PXQLFLSDO FLYLO VHUYDQWV SROLFH RI¿FLDOV DV ZHOO DV FHUWDLQ SRZHUIXO ORFDO SROLWLFLDQV ZHUH DOOHJHG WR KDYH EHHQ LQYROYHG LQ WKH HYLFWLRQ SURFHVVHV 7KH PXQLFLSDOLWLHV LGHQWL¿HG KDYH FOHDUO\ DUWLFXODWHG WKHLU ZLOOLQJQHVV WR ¿QG DOO SRVVLEOH ZD\V DQG PHDVXUHV WR HUDGLFDWH VXFK PDOSUDFWLFHV LQ WKHLU DUHDV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
'HDOLQJ ZLWK HYLFWLRQV RQ D FDVH E\ FDVH EDVLV 7KH FLWLHV HQJDJHG LQ µHYLFWLRQ IUHH WHUULWRU\¶ SURFHVVHV WRRN PHDVXUHV WR GHDO ZLWK HYLFWLRQ FDVHV RQ D FDVH E\ FDVH EDVLV 7KHLU SUDJPDWLF DSSURDFK IRFXVHG RQ DGGUHVVLQJ WKH H[LVWLQJ SUREOHPV ,Q 5RPH YDULRXV PHDVXUHV ZHUH WDNHQ ZLWK LPPHGLDWH HIIHFW VXFK DV WKH UHFRJQLWLRQ RI WKH YDOXH RI VHOI KHOS KRXVLQJ UHKDELOLWDWLRQ DV D ZD\ WR SD\ UHQW ,Q &XULWLED RQH RI WKH WDVNV RI WKH PXOWL VHFWRUDO FRPPLVVLRQ WKDW ZDV VHW XS DV D UHVXOW RI WKH PLVVLRQ LV ³WKH PHGLDWLRQ RI HYLFWLRQV WKDW DUH DERXW WR EH FDUULHG RXW E\ OHJDO SURFHVVHV DYRLGLQJ WKH QHHG IRU WKH 0XQLFLSDO *XDUG WR LQWHUYHQH´ 7KHVH SURSRVDOV DUH LQWHUHVWLQJ DQG XVHIXO EHFDXVH WKH\ PHHW WKH W\SLFDO UHTXHVWV RI WKUHDWHQHG FRPPXQLWLHV 1DWLRQDO DQG &HQWUDO *RYHUQPHQW LQLWLDWLYHV 7KH FDVH RI .DPSDOD 8JDQGD LQ ZKLFK WKH &HQWUDO *RYHUQPHQW GLG QRW DOORZ WKH .DPSDOD &LW\ &RXQFLO WR XQGHUWDNH WKH HYLFWLRQ LV RQH DPRQJ PDQ\ FDVHV WKDW SRLQWV RXW WKH NH\ UROH WKDW *RYHUQPHQW RI¿FLDOV FDQ SOD\ LQ KDOWLQJ HYLFWLRQV RU FRQYHUVHO\ LQ OHWWLQJ WKHP WDNH SODFH 7KH YHU\ ZHOFRPH LQWHUUXSWLRQ RI HYLFWLRQV LQ 6DQWR 'RPLQJR 3URYLQFH EHWZHHQ ODWH DQG HDUO\ ZDV FOHDUO\ UHODWHG WR WKH SROLWLFDO ZLOO RI WKH *RYHUQRU RI WKH 3URYLQFH WR VWRS HYLFWLRQV DQG WR FRQVWDQWO\ QHJRWLDWH ZLWK WKH /DZ\HU RI WKH 2I¿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¿YH \HDUV RQ DOORWPHQWV RZQHG E\ WKH )HGHUDO *RYHUQPHQW 7KH UHVLGHQWV ³ERXJKW WKHLU KRXVHV IURP D PDQ ZKR GLVDSSHDUHG DIWHU UHFHLYLQJ WKH PRQH\´ 7KH\ VWDWHG DV IROORZV ³:H SDLG SHVRV EXW ZH KDYH QR UHFHLSWV DW DOO $V WLPH ZHQW E\ ZH LPSURYHG RXU KRPHV ´ ,Q 0D\ DQ XQSUHFHGHQWHG MXGJPHQW GHQLHG WKH UHTXHVW WR IRUFLEO\ HYLFW WKH VL[W\ IDPLOLHV 7KH MXGJPHQW ZDV EDVHG RQ WKH DUJXPHQW WKDW HYHU\ FLWL]HQ KHOG WKH ULJKW WR KDYH D KRXVH LQ ZKLFK WR GZHOO 7KH OHJDO VXEVWDQFH RI WKLV MXGJPHQW ZDV EDVHG RQ $UWLFOHV DQG D RI WKH 1DWLRQDO &RQVWLWXWLRQ DQG ,QWHUQDWLRQDO 7UHDWLHV LQFOXGLQJ WKH &RYHQDQW RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV ZKLFK ZDV UDWL¿HG E\ $UJHQWLQD DQG LQFRUSRUDWHG LQWR WKH 1DWLRQDO &RQVWLWXWLRQ GXULQJ WKH UHIRUPV LQ 0RUHRYHU WKH &ULPLQDO &RXUW MXGJH UHIXVHG WR FULPLQDOLVH WKH RFFXSDWLRQ DV WKH FODLPDQW KDG UHTXHVWHG 7KH FDVH KDV DQ LQWHUQDWLRQDO YDOXH LQ WKDW LW UHIHUV WR DQ ,QWHUQDWLRQDO &RYHQDQW LQ WKLV FDVH LQFRUSRUDWHG LQWR WKH 1DWLRQDO &RQVWLWXWLRQ ,W LV D SRVLWLYH H[DPSOH ZKLFK FRXOG EHFRPH D BBBBBBBBBBBB
,Q WKH 'RPLQLFDQ 5HSXEOLF WKH *RYHUQRUV RI HDFK RI WKH 3URYLQFHV DUH QRW HOHFWHG EXW QRPLQDWHG E\ WKH 0LQLVWU\ RI ,QWHULRU 5H\QDOV & &HLER $*)( FDVH ¿OHV 5H\QDOV & &HLER $*)( FDVH ¿OHV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
UHIHUHQFH FDVH 8QIRUWXQDWHO\ VXFK FDVHV DUH SRRUO\ UHJLVWHUHG DQG GRFXPHQWHG DQG GHVHUYH JUHDWHU DWWHQWLRQ IURP VWDNHKROGHUV LQ WKHLU FRQVLGHUDWLRQ RI OHJDO SUHFHGHQWV DQG RSWLRQV WR UHVROYH HYLFWLRQ PDWWHUV 3UHYHQWLYH SROLFLHV DQG IDFLOLWDWLQJ D OHJDO IUDPHZRUN $OWKRXJK WKLV UHYLHZ IRFXVHV RQ IRUFHG HYLFWLRQV LW VKRXOG EH PDGH FOHDU WKDW SUHYHQWLYH SROLFLHV DUH E\ IDU WKH EHVW ZD\ WR DSSURDFK WKH SUREOHP )RUFHG HYLFWLRQV XVXDOO\ UHÀHFW WKH ODFN RI DGHTXDWH SROLFLHV DQG SURSHU OHJDO IUDPHZRUNV RQ ODQG DQG KRXVLQJ ZLWKLQ D SDUWLFXODU FRXQWU\ $ W\SLFDO VLWXDWLRQ UHIHUV WR FRXQWULHV WKDW SUHYLRXVO\ KDG ODUJH SXEOLF KRXVLQJ SURJUDPPHV EXW ZKLFK ZHUH VXEVHTXHQWO\ UHGXFHG RU HYHQ WHUPLQDWHG $W WKH VDPH WLPH WKH SULYDWL]DWLRQ RI SXEOLF UHQWHG KRXVLQJ VWRFN RFFXSLHG E\ WKH SRRU FDQ HQWDLO D GUDVWLF LQFUHDVH LQ UHQWV 7KH ODFN RI SURSHU VRFLDO SURWHFWLRQ IRU IDPLOLHV DQG LQGLYLGXDOV IDFLQJ HFRQRPLF GLI¿FXOWLHV KDV VLJQL¿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³6WDWXWH RI WKH &LW\´ (VWDWXWR GD &LGDGH LV D SRVLWLYH ODQGPDUN ,W KDG EHHQ SURSRVHG DQG GLVFXVVHG IRU \HDUV E\ WKH 1DWLRQDO )RUXP IRU 8UEDQ 5HIRUP ZKLFK JDWKHUV WRJHWKHU FRPPXQLW\ EDVHG RUJDQL]DWLRQV 1*2V DQG SURIHVVLRQDOV IRU LQVWDQFH WKH 1DWLRQDO $VVRFLDWLRQ RI *HRJUDSKHUV RU WKH 1DWLRQDO $VVRFLDWLRQ RI $UFKLWHFWV 7KH 7KDL 1DWLRQDO SURJUDPPH 8&'2 8UEDQ &RPPXQLW\ 'HYHORSPHQW 2I¿FH WUDQVIRUPHG ODWHU LQWR &2', &RPPXQLW\ 2UJDQLVDWLRQV 'HYHORSPHQW ,QVWLWXWH LOOXVWUDWHV DQRWKHU LQQRYDWLYH DSSURDFK WR WKH SUHYHQWLRQ RI HYLFWLRQV 3DUWLFLSDWRU\ %XGJHWLQJ LV D JURZLQJ PXQLFLSDO SUDFWLFH WKDW KDV FRQWULEXWHG VLJQL¿FDQWO\ WR WKH SUHYHQWLRQ RI HYLFWLRQV 7KLV LV D SURFHVV WKURXJK ZKLFK WKH SRSXODWLRQ RI D FLW\ FDQ GHFLGH XSRQ SDUW RU DOO RI WKH PXQLFLSDO EXGJHW XVXDOO\ WKH LQYHVWPHQW VKDUH RI WKH EXGJHW 6LQFH PRUH WKDQ FLWLHV PDLQO\ IURP /DWLQ $PHULFD DQG %UD]LO LQ SDUWLFXODU KDYH LQLWLDWHG WKLV SURFHVV ZLWK D QXPEHU RI ORFDO YDULDWLRQV 3RRU FRPPXQLWLHV WKDW SDUWLFLSDWHG IRU LQVWDQFH LQ ODUJH FLWLHV VXFK DV 3RUWR $OHJUH RU %HOR +RUL]RQWH LQ %UD]LO XVHG WKH RSSRUWXQLW\ BBBBBBBBBBBB
6HH DPRQJ RWKHUV )RUXP 1DFLRQDO GD 5HIRUPD 8UEDQD ,QVWUXPHQWRV GH GHPRFUDWL]DomR H *HVWmR 8UEDQD :RUNLQJ 3DSHU 1R %UD]LO SXEOLVKHG E\ 3*8 $/& 81 +DELWDW 4XLWR 2Q LQQRYDWLYH SROLFLHV VHH 0LWOLQ ' DQG 6DWWHUWKZDLWH ' HG (PSRZHULQJ 6TXDWWHU &LWL]HQ /RFDO *RYHUQPHQW &LYLO 6RFLHW\ DQG 8UEDQ 3RYHUW\ 5HGXFWLRQ /RQGRQ DQG 6WHUOLQJ 9$ (DUWKVFDQ DQG 0DWKp\ .RVWD HG %H\RQG 6HOI +HOS +RXVLQJ /RQGRQ DQG 1HZ <RUN 0DQVHOO 0 QFKHQ 3UR¿O 9HUO &DEDQQHV < ³3DUWLFLSDWRU\ %XGJHWLQJ $ 6LJQL¿FDQW &RQWULEXWLRQ WR 3DUWLFLSDWRU\ 'HPRFUDF\¶ ,Q (QYLURQPHQW DQG 8UEDQL]DWLRQ 9RO 1R $SULO SS 'RZQORDGDEOH IURP KWWS ZZZ LLHG RUJ KXPDQ HDQGX VDPSOHBSXEV KWPO DQG &DEDQQHV < $QVZHUV WR )UHTXHQWO\ $VNHG 4XHVWLRQV $ERXW 3DUWLFLSDWRU\ %XGJHWLQJ 4XLWR 803 /$& 81 +$%,7$7 81'3
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
WR REWDLQ SXEOLF UHVRXUFHV WR UHJXODUL]H WKH ODQG ZKHUH WKH\ OLYHG RU WR EX\ ODQG WR VWDUW PXWXDO DLG KRXVLQJ SURMHFWV XVXDOO\ ¿QDQFHG WKURXJK IHGHUDO UHVRXUFHV 2QH RI WKH OHDGHUV IURP WKH 1DWLRQDO 0RYHPHQW +RXVLQJ 6WUXJJOH ZKR ZDV ¿HUFHO\ EHDWHQ LQ DQ HYLFWLRQ LQ &XULWLED VHH SKRWRJUDSK LQ &KDSWHU VWUHVVHG WKDW ³ZKHUHDV RQH RI WKHLU FRPPXQLWLHV KDG MXVW EHHQ YLROHQWO\ HYLFWHG LQ &XULWLED DQRWKHU RQH YHU\ VLPLODU LQ WHUPV RI KLVWRU\ DQG LQFRPH KDG MXVW UHFHLYHG WKH UHVRXUFHV WR JHW ODQG DV SDUW RI WKH 3DUWLFLSDWRU\ %XGJHWLQJ DOORFDWLRQV LQ 3RUWR $OHJUH´
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¶V SOHD SXEOLF WKHQ GHFLVLRQ PDNHUV DQG SROLWLFLDQV ZRXOG V\PSDWKLVH ZLWK WKHP ZLWK WKH FRQVHTXHQFH WKDW WKHLU UHODWLRQVKLSV ZRXOG LPSURYH $W WKH VDPH WLPH DV WKH 3HUXYLDQ FDVH RI 7DPER *UDQGH LOOXVWUDWHV RQFH DQ DIIHFWHG FRPPXQLW\¶V FDVH LV LQ WKH QHZV YDULRXV VRFLDO JURXSV PLJKW JLYH WKHLU SRVLWLYH VXSSRUW WR WKH FDPSDLJQ RU YLVLW WKH DIIHFWHG IDPLOLHV 7KXV WKH PHGLD PLJKW KHOS LQ EUHDNLQJ WKH LVRODWLRQ RI D WKUHDWHQHG FRPPXQLW\ DQG PDLQWDLQ DQG LQFUHDVH FRPPXQLW\ PRUDOH $V LOOXVWUDWHG LQ &KDSWHU WKH OHWWHU UHFHLYHG E\ &2+5( IURP WKH UHSUHVHQWDWLYH RI WKH 7HQDQWV¶ $VVRFLDWLRQ LQ 8JDQGD DIWHU WKH SURWHVW OHWWHU RQ WKH 1DJXUX DQG 1DNDZD HVWDWHV ZDV VXEPLWWHG WR WKH DXWKRULWLHV LOOXVWUDWHV KRZ PHGLD FRYHUDJH FDQ EH SDUW RI WKH VWUDWHJ\ RI D VXFFHVVIXO FDPSDLJQ ³, DP KDSS\ WR LQIRUP \RX WKDW D IHZ GD\V DIWHU \RXU DUWLFOH ZDV SXEOLVKHG LQ WKH 1HZ 9LVLRQ 1HZVSDSHU WKH 3UHVLGHQW RI 8JDQGD LQWHUYHQHG WR VWRS WKH HYLFWLRQ RI WHQDQWV IURP ERWK (VWDWHV « %XW QHYHUWKHOHVV HYHU\RQH WKDW UHDG \RXU SURWHVW OHWWHU LQFOXGLQJ WKH WHQDQWV WKH WZR DUHD 03V RQH EHLQJ )UHGGLH 5XKLQGL *RYHUQPHQW UHSUHVHQWDWLYHV DPRQJ RWKHUV ZHUH YHU\ KDSS\ ZLWK \RXU SURWHVW OHWWHU ,Q IDFW , ZDV JRLQJ WR ZULWH WR \RX DIWHU UHFHLYLQJ WKH RI¿FLDO VWDWHPHQW IURP WKH 3UHVLGHQW¶V 2I¿FH :H ZHUH SURPLVHG WR UHFHLYH WKH 3UHVLGHQW¶V VWDWHPHQW DIWHU WKH KROLGD\V DQG XS WR QRZ ZH DUH VWLOO ZDLWLQJ ,Q RWKHU ZRUGV HYHU\WKLQJ WKDW , DP WHOOLQJ \RX QRZ LV VLPSO\ ZKDW ZH KDYH EHHQ DEOH WR DFFHVV WKURXJK WKH PHGLD +RZHYHU , ZLOO VHQG \RX D FRS\ RI WKH 3UHVLGHQW¶V VWDWHPHQW LI ZH HYHU UHFHLYH LW 7KDQN \RX YHU\ PXFK IRU \RXU LQWHUYHQWLRQ DQG , ZLOO FHUWDLQO\ NHHS \RX SRVWHG RQ DQ\ QHZ GHYHORSPHQWV´
BBBBBBBBBBBB
$QVHOPR 6FKZHUWQHU 1DWLRQDO &RRUGLQDWRU 01/0 2FWREHU GXULQJ DQ LQWHUYLHZ ZLWK <YHV &DEDQQHV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
2QH FOHDU DGGHG YDOXH RI HDFK RI WKH $*)( PLVVLRQV ZKLFK KDV EHHQ GXO\ DFNQRZOHGJHG E\ ORFDO FRXQWHUSDUWV KDV EHHQ WKH FDSDFLW\ RI WKHVH PLVVLRQV WR UDLVH WKH LQWHUHVW RI WKH PDVV PHGLD DQG KRZ WKLV KDV FRQWULEXWHG WR RSHQLQJ WKH QHFHVVDU\ GLDORJXH EHWZHHQ WKH LQYROYHG SDUWLHV ,W ZDV LPSRUWDQW IRU HIIHFWLYH PHGLD FRYHUDJH IRU WKH PLVVLRQV WR EH VHHQ WR EH LQGHSHQGHQW RI DOO LQYROYHG SDUWLHV
,QWHUQDWLRQDO 6ROLGDULW\ ,QWHUQDWLRQDO FDPSDLJQV DV SDUW RI VXFFHVVIXO SUDFWLFHV 2QH RI WKH FDVHV UHIHUV WR DQ LQWHUQDWLRQDO FDPSDLJQ WR VWRS HYLFWLRQV LQ 1DLUREL 7KH ,QWHUQDWLRQDO $OOLDQFH RI ,QKDELWDQWV WRJHWKHU ZLWK WKH .XWRND 1HWZRUN RI 3DULVKHV LQ WKH LQIRUPDO VHWWOHPHQWV ODXQFKHG DQ LQWHUQDWLRQDO VROLGDULW\ FDPSDLJQ FDOOHG ¶9LYD 1DLUREL 9LYD¶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³7KRXVDQGV RI SHRSOH KDYH WDNHQ WKHLU SURWHVWV WR WKH ,QWHUQHW SRVWLQJ DQRQ\PRXV OHWWHUV DQG FRPSODLQWV RQ HOHFWURQLF PDLO DQG EXOOHWLQ ERDUGV DQG FLUFXODWLQJ JUXHVRPH UHSRUWV RI YLROHQW HYLFWLRQV ,Q FRQWUDVW WR &KLQD¶V VWULFW FRQWURO RI GLVVHQW RQ RWKHU LVVXHV PDQ\ RI WKHVH WHQDQWV¶ SURWHVWV ZHUH XQFHQVRUHG DQG WKH FULWLFLVP TXLFNO\ EXLOW XS VWHDP 2QH W\SLFDO ZULWHU VDLG µ5HFHQWO\ GHPROLWLRQ SUREOHPV KDYH VHULRXVO\ LQÃ&#x20AC;XHQFHG VRFLDO VWDELOLW\ RQ WKH PDLQODQG EHFDXVH LQ WKH SURFHVV RI GHPROLWLRQ ORFDO JRYHUQPHQWV WDNH DGYDQWDJH RI WKHLU DGPLQLVWUDWLYH SRZHUV WR HQJDJH LQ W\UDQQLFDO EXVLQHVV ZLWKRXW UHJDUG IRU WKH ULJKWV RI HYLFWHHV 'RQ¶W GHPROLVK WKH IRXQGDWLRQ RI WKH UHSXEOLF WKURXJK GHPROLWLRQ DQG HYLFWLRQ¶ ´ 7KH FDPSDLJQ WKDW KDV EHHQ WROHUDWHG E\ WKH *RYHUQPHQW KDV XWLOLVHG WHFKQRORJ\ VXFK DV WKH ,QWHUQHW WR FUHDWH DQ LQWHUQDWLRQDO DZDUHQHVV RI WKH GLPHQVLRQ RI WKH HYLFWLRQ SUREOHP LQ &KLQD DQG WKXV IDFLOLWDWH VXSSRUW IRU DQG EUHDN WKH LVRODWLRQ RI WKH WHQDQWV¶ PRYHPHQWV LQ WKDW FRXQWU\ 7KLV PRYHPHQW ZDV LQWHUQDWLRQDOO\ VXSSRUWHG E\ YDULRXV KXPDQ ULJKWV RUJDQL]DWLRQV
BBBBBBBBBBBB
)RU PRUH GHWDLOV RQ WKH &KLQHVH FDPSDLJQ VHH 'HPROLVKHG IRUFHG HYLFWLRQV DQG WKH WHQDQW¶V PRYHPHQW LQ &KLQD +XPDQ 5LJKWV :DWFK 9RO 1R SS
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
'HEW VZDSSLQJ 2QH RI WKH VWUDWHJLHV RI WKH ,QWHUQDWLRQDO $OOLDQFH RI ,QKDELWDQWV ZLWK UHVSHFW WR WKH .HQ\D HYLFWLRQV LV WR JHW LQYROYHG LQ GLVFXVVLRQV RQ WKH FDQFHOODWLRQ RI GHEW E\ (XURSHDQ FRXQWULHV LQ RUGHU WR µVZDS¶ .HQ\D¶V DQG RWKHU GHYHORSLQJ FRXQWULHV IRUHLJQ GHEW LQWR UHVRXUFHV WKDW ZRXOG ¿QDQFH WKH VR FDOOHG µ3HRSOH¶V )XQG IRU WKH 5LJKW WR /DQG DQG +RXVLQJ¶ ,Q WHUPV RI WKHVH SURSRVDOV LQKDELWDQWV¶ RUJDQLVDWLRQV DQG ORFDO DXWKRULWLHV ZRXOG FRQWURO VXFK IXQGV WKDW ZRXOG EH XVHG WR ¿QDQFH XUEDQ DQG KRXVLQJ SURJUDPPHV IRU WKH SRRU DQG WKRVH WKUHDWHQHG ZLWK HYLFWLRQV 7KXV IDU VLJQL¿FDQW SURJUHVV KDV EHHQ PDGH ZLWK VRPH JRYHUQPHQWV IRU H[DPSOH WKH ,WDOLDQ *RYHUQPHQW LV FRQVLGHULQJ WKH FDQFHOODWLRQ RI GHEW RZHG WR LW E\ .HQ\D DQG WKH HDUPDUNLQJ WKH UHVRXUFHV DV D FRQWULEXWLRQ WR D 3HRSOH¶V &RQWUROOHG )XQG VWLOO WR EH GHVLJQHG
$GGLWLRQDO OHVVRQV IURP WKH $*)( PLVVLRQV /HJLWLPLVDWLRQ RI WKH UROH RI SDUWLHV HQJDJHG LQ ¿QGLQJ VROXWLRQV 2QH RI WKH NH\ DGGHG YDOXHV RI WKH $*)( PLVVLRQ LV SUREDEO\ LWV OHJLWLPLVLQJ LPSDFW RQ WKH ZRUN RI SDUWLHV GLUHFWO\ LQYROYHG LQ WKH VHDUFK IRU SRVLWLYH VROXWLRQV WR HYLFWLRQ PDWWHUV 7KLV LPSDFW KDV EHHQ GXH WR WKH QDWXUH RI WKH RI¿FLDO 81 OLQN RI $*)( DQG WKH VHQLRU SUR¿OH RI PLVVLRQ PHPEHUV (DFK RI WKH PLVVLRQV ZDV XQGHUWDNHQ LQ UHVSRQVH WR RI¿FLDO UHTXHVWV IURP &HQWUDO RU /RFDO *RYHUQPHQWV DQG LQ SDUDOOHO WR WKHVH RI¿FLDO UHTXHVWV E\ UHSUHVHQWDWLYHV RI &LYLO 6RFLHW\ RUJDQLVDWLRQV 'XULQJ WKH PLVVLRQV WKHVH LQVWLWXWLRQV JDLQHG VXEVWDQWLDO YLVLELOLW\ DQG WKHLU UROH DV PHGLDWRUV ZDV HQKDQFHG
,PSRUWDQFH RI PXOWL DFWRU FRPPLVVLRQV 7KH FDVHV UHYLHZHG LQ &KDSWHU LQGLFDWH WKDW WKH DFWLYH SDUWLFLSDWLRQ RI YDULRXV SDUWLHV LV H[WUHPHO\ SRVLWLYH DQG LPSRUWDQW LQ JHQHUDWLQJ GLDORJXH 7KLV GLDORJXH LV LQ LWV WXUQ YHU\ KHOSIXO WR JHQHUDWH FRQVHQVXV DQG LGHQWLI\ WKH EHVW VROXWLRQV WR VWRS HYLFWLRQV DQG FUHDWH VHFXULW\ RI WHQXUH ,QWHUHVWLQJO\ HDFK RI WKH $*)( PLVVLRQV ZDV DEOH WR GHYHORS PXOWL SDUW\ DQG PXOWL VHFWRUDO LQLWLDWLYHV ZLWK VSHFL¿F WDVNV VFKHGXOHV DQG FRPSRVLWLRQV (DFK RI WKH PLVVLRQV DFWHG LQGHSHQGHQWO\ EXW DOO RI WKHP GHYHORSHG VLPLODU VROXWLRQV QDPHO\ x 7KH\ FOHDUO\ GH¿QHG WKH REMHFWLYHV WR EH DFKLHYHG x 7KH\ IRFXVHG RQ VSHFL¿F LVVXHV UHODWHG WR HYLFWLRQV x 7KH\ ZHUH DEOH WR EULQJ WRJHWKHU NH\ DFWRUV LQ WKH SURFHVV ,Q WKH 'RPLQLFDQ 5HSXEOLF WZR GLIIHUHQW FRPPLVVLRQV ZHUH GHFLGHG XSRQ DW WKH FRQFOXVLRQ RI PHHWLQJV ZLWK DIIHFWHG SDUWLHV 7KH ¿UVW RQH LV WKH 0XOWLSDUW\ 3DUOLDPHQWDU\ &RPPLVVLRQ KHDGHG E\ WKH 3UHVLGHQW RI WKH 3DUOLDPHQW ,WV PDLQ WDVN LV WR XSGDWH WKH H[LVWLQJ ODZ LQ RUGHU WR JLYH VROXWLRQV WR WKRVH VHWWOHPHQWV ZLWKRXW VHFXULW\ RI WHQXUH DQG WLWOHV LQFOXGLQJ WKH DUHDV XQGHU WKUHDW RI HYLFWLRQV 7KH QHZ ODZ VKRXOG EH DSSURYHG ZLWKLQ D PRQWK SHULRG VWDUWLQJ IURP WKH BBBBBBBBBBBB
,QWHUYLHZ ,$, &R RUGLQDWRU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
GDWH RI WKH PLVVLRQ 7KH VHFRQG FRPPLVVLRQ LV D 7ULSDUWLWH 5RXQG 7DEOH WKDW JDWKHUV WRJHWKHU WKH 0XOWLSDUW\ 3DUOLDPHQWDU\ &RPPLVVLRQ WKH 1DWLRQDO $VVRFLDWLRQ RI /RFDO *RYHUQPHQWV DQG WKH µ1DWLRQDO /DQG &R RUGLQDWLRQ¶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
([FKDQJH RI H[SHULHQFHV ([FKDQJH RI H[SHULHQFHV EHWZHHQ SHRSOHV¶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¿WHG IRU LQVWDQFH IURP WKH ODQG SROLFLHV LPSOHPHQWHG E\ WKH 6mR 3DXOR *RYHUQPHQW /LNHZLVH LQ WKH SRVW 7VXQDPL ZRUNVKRS JUDVVURRWV SDUWLFLSDQWV LQ 6UL /DQND FRXOG H[FKDQJH WKHLU H[SHULHQFHV ZLWK WKH OHDGHUV RI WKH ,QGLDQ 6OXP 'ZHOOHUV )HGHUDWLRQ 7KH H[SHULHQFH EURXJKW E\ WKH +XDLURX &RPPLVVLRQ UHSUHVHQWDWLYH WR ,WDO\ IDFLOLWDWHG WKH HVWDEOLVKPHQW RI WKH ¿UVW VWHSV IRU D PRUH V\VWHPDWLF H[FKDQJH DPRQJ ZRPHQ XQGHU WKUHDWV RI HYLFWLRQV 'XULQJ WKH PLVVLRQ LQ 6DQWR 'RPLQJR WKH 3HUXYLDQ H[SHULHQFH RI VHWWLQJ XS D µ)XQG IRU /DQG¶ DQG DOVR WR DVVLVW HYLFWHG SHRSOH ZDV GLVFXVVHG ZLWK YDULRXV SDUWQHUV DQG LW LV OLNHO\ WKDW D VLPLODU V\VWHP ZLOO EH LPSOHPHQWHG LQ WKH 'RPLQLFDQ 5HSXEOLF 7KH H[SHULHQFHV RI /DQG 6KDULQJ GHYHORSHG VXFFHVVIXOO\ LQ 7KDLODQG WR VROYH ODQG FRQÃ&#x20AC;LFWV ZDV D NH\ UHIHUHQFH SRLQW WR GHYHORSLQJ D VROXWLRQ WR WKH H[WUHPHO\ YLROHQW HYLFWLRQV WKDW WRRN SODFH GXULQJ WKH WLPH RI BBBBBBBBBBBB
7KH :RUNLQJ *URXS LV FRPSRVHG RI UHSUHVHQWDWLYHV RI DOO LQWHUHVWHG SDUWLHV WKH 0XQLFLSDOLW\ RI &XULWLED WKH &XULWLED ,QVWLWXWH RI 8UEDQ 5HVHDUFK DQG 3ODQQLQJ ,338& WKH 0XQLFLSDO 6HFUHWDU\ RI 8UEDQLVDWLRQ WKH &XULWLED 3RSXODU +DELWDWLRQ &RPSDQ\ &2+$% WKH 0XQLFLSDO 6HFUHWDU\ RI 'HIHQFH 7KH 0LQLVWU\ RI &LWLHV WKH 6SHFLDO 6HFUHWDU\ RI 0HWURSROLWDQ $IIDLUV WKH &XULWLED 'HYHORSPHQW &RPSDQ\ &'& WKH 3DUDQi +DELWDWLRQ &RPSDQ\ &2+$3$5 WKH 1DWLRQDO 5DSSRUWHXU RQ WKH +XPDQ 5LJKW WR $GHTXDWH +RXVLQJ WKH &HQWHU RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( WKH 3DUDQi 2EVHUYDWRU\ RQ 3XEOLF 3ROLFLHV WKH /DQG RI 5LJKWV 7HUUD GH 'LUHLWRV WKH 1DWLRQDO 0RYHPHQW RQ WKH 6WUXJJOH IRU +RXVLQJ WKH &HQWHU IRU 3RSXODU 0RYHPHQWV WKH 0XQLFLSDO &KDPEHU 8UEDQLVDWLRQ &RPPLVVLRQ WKH 3DUDQi )HGHUDO 8QLYHUVLW\ 6WDWH 3XEOLF 0LQLVWU\ UHSUHVHQWDWLYHV IURP WKH FRPPXQLWLHV WKDW DWWHQGHG WKH SXEOLF KHDULQJ DQG $*)(
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
WKH PLVVLRQ WR 6DQWD 'RPLQJR $V D UHVXOW RI WKH FRQVLGHUDWLRQ RI LQWHUQDWLRQDO H[DPSOHV LW LV OLNHO\ WKDW WKH ODUJH SRUWLRQ RI ODQG IURP ZKLFK SHRSOH ZHUH HYLFWHG ZLOO EH GLYLGHG LQWR WZR SDUWV DQG WKDW SRUWLRQ RFFXSLHG IRU PDQ\ \HDUV E\ D KXQGUHG IDPLOLHV ZLOO EH H[SURSULDWHG E\ WKH *RYHUQPHQW DQG VXEGLYLGHG DPRQJ WKH IDPLOLHV ,W ZLOO EH WKH ¿UVW H[SHULHQFH RI LWV NLQG LQ WKH &DULEEHDQ 7KH H[FKDQJH RI H[SHULHQFH LV QRW D WUDQVIHU RI UHFLSHV EXW PXFK PRUH DERXW DQ H[FKDQJH RI LGHDV DQG RI EDVLF FRQFHSWV WKDW HDFK RI WKH VWDNHKROGHUV ZLOO EH DEOH WR DGDSW DFFRUGLQJ WR WKH SDUWLFXODU FRQWH[W DQG QHHGV RI WKH SDUWLHV 7KHVH H[FKDQJHV KDYH EHHQ KLJKO\ YDOXHG E\ WKH SDUWLHV LQ HDFK FDVH DQG HQDEOHG YHU\ TXLFN UHVXOWV WR GHOLEHUDWLRQV RQ HYLFWLRQV DQG VHFXULW\ RI WHQXUH LVVXHV
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¿UVW VWHSV WDNHQ WKH PHPEHUVKLS DQG UHVRXUFHV RI $*)( LV VDGO\ RXW RI VFDOH LQ SURSRUWLRQ WR WKH QXPEHU DQG YROXPH RI HYLFWLRQV GHPDQGLQJ XUJHQW DWWHQWLRQ ,QVXI¿FLHQW DWWHQWLRQ WR GHDOLQJ ZLWK LUUHJXODU DQG FODQGHVWLQH EURNHUV ,QVXI¿FLHQW DWWHQWLRQ KDV EHHQ SDLG WR LQGLYLGXDO ODQGORUGV DQG FRUUXSWHG SROLWLFLDQV ZKR DEXVH WKH SRRU RU QHZFRPHUV WR FLWLHV E\ VHOOLQJ WKHP IDOVH SURSHUW\ WLWOHV VHH 9LOOD %HUPHMR &DVH ,QVXI¿FLHQW DWWHQWLRQ KDV DOVR EHHQ SDLG WR ODQG LQYDVLRQV RUJDQLVHG E\ µSURWHFWHG JURXSV¶ ZKR RQFH WKH ODQG LV RFFXSLHG VHOO LW LOOHJDOO\ IRU WKHLU RZQ EHQH¿W ,Q 6DQWR 'RPLQJR IRU LQVWDQFH RQH SORW RI ODQG FDQ KDYH XS WR IRXU FODLPDQWV HDFK ZLWK WUDQVDFWLRQ SDSHUV +RZ WR KDOW WKHVH SUDFWLFHV DQG SXQLVK WKRVH UHVSRQVLEOH IRU WKHP LV D GHOLFDWH SRLQW ZKLFK KDV WR EH DGGUHVVHG LQ WKH IXWXUH ,Q PRUH WKDQ RQH FDVH GH IDFWR LPSXQLW\ KDV EHHQ WKH UXOH ,Q WKDW VHQVH WKH DFWLRQ SODQ RI WKH &XULWLED &RPPLVVLRQ LV TXLWH UHOHYDQW ZKHQ LW SURSRVHV WR IRFXV XSRQ ³OHJDO DQG DGPLQLVWUDWLYH PHDVXUHV DLPLQJ DW KDOWLQJ WKH DFWLYLWLHV RI LUUHJXODU DQG FODQGHVWLQH EURNHUV DQG LQ WKH VHDUFK RI VROXWLRQV WR WKH ODQG RZQHUVKLS UHJXODULVDWLRQ DQG WKH SURWHFWLRQ RI ORZ LQFRPH SXUFKDVHUV´
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
,QVXI¿FLHQW DWWHQWLRQ WR WKH FRVW RI UHORFDWLRQ $QRWKHU LVVXH WKDW $*)( KDV LQVXI¿FLHQWO\ DGGUHVVHG WKXV IDU LV WKH VHDUFK IRU LQQRYDWLYH ZD\V WR IDFH WKH HFRQRPLF DQG VRFLDO FRVWV UHODWHG WR WKH UHORFDWLRQ RI IDPLOLHV ,Q VRPH LQVWDQFHV LPSURYLQJ WKH OLYLQJ DQG VDQLWDU\ FRQGLWLRQV RI D QHLJKERXUKRRG RQFH UHJXODULVHG ZLOO LQHYLWDEO\ PHDQ WKDW D QXPEHU RI IDPLOLHV ZLOO KDYH WR EH UHORFDWHG GHVSLWH D GHQVL¿FDWLRQ SURFHVV GHYHORSHG LQ WKH FRXUVH RI WKH UHJXODULVDWLRQ 7KLV UHORFDWLRQ LPSOLHV VLJQL¿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¿QDQFLDO DQG RWKHU IRUPV RI DSSURSULDWH FRPSHQVDWLRQ WR EH SDLG WR WKH IDPLOLHV DIIHFWHG E\ UHORFDWLRQ /DQJXDJH GLI¿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¿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
BBBBBBBBBBBB
7KLV LV WKH FDVH RI WKH *XDQGXOHV DQG &LHQDJD QHLJKERXUKRRGV LQ 6DQWR 'RPLQJR ZKHUH DURXQG SHRSOH OLYH XQGHU WKUHDW RI HYLFWLRQV IRU \HDUV 7KH 3LORW 3ODQ SUHSDUHG LQ D SDUWLFLSDWRU\ ZD\ E\ WKH YDULRXV FRPPXQLWLHV DQG ZLWK WKH VXSSRUW RI YDULRXV 1*2V HVWLPDWHV WKDW RYHU IDPLOLHV ZLOO KDYH WR PRYH RXW DQG EH UHORFDWHG WR D SODFH VWLOO XQNQRZQ
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3RWHQWLDO DJHQGD IRU $*)( LQ WKH IXWXUH D EDVLV IRU GLVFXVVLRQ 5HTXHVWV DQG QHHGV 7KH UHTXHVWV DQG WKH QHHGV GLVFXVVHG WKXV IDU IDOO XQGHU IRXU EURDG FDWHJRULHV x &RQFLOLDWRU\ DQG PHGLDWLRQ PLVVLRQV VLPLODU WR WKH RQHV FRQGXFWHG WKXV IDU x 0RQLWRULQJ DQG IROORZ XS RI WKH PLVVLRQV WKDW ZHUH XQGHUWDNHQ x 3URYLVLRQ RI LQIRUPDWLRQ RQ ULJKWV OHJDO IUDPHZRUNV DQG SROLFLHV WR DOO SDUWLHV ORFDOO\ LQYROYHG VHH &XULWLED IRU LQVWDQFH DQG RU LQQRYDWLYH SUDFWLFHV VHH 5RPH DQG 6DQWR 'RPLQJR x 6SHFLDOLVHG WUDLQLQJ VHVVLRQV GLUHFWHG WR DOO SDUWLHV IRU H[DPSOH D WUDLQLQJ FRXUVH RQ FRQÃ&#x20AC;LFW PHGLDWLRQ :KDW FRXOG EH GRQH" 7KHUH LV QR GRXEW WKDW $*)( VKRXOG EH PDLQWDLQHG DQG FRQVROLGDWHG ERWK DV D JURXS DQG DV D XQLTXH DQG JURZLQJ QHWZRUN RI FRPPLWWHG DQG VSHFLDOLVHG LQGLYLGXDOV DQG LQVWLWXWLRQV 7R GR WKLV ZLOO UHTXLUHG WKH PRELOLVDWLRQ RI WKH QHFHVVDU\ UHVRXUFHV 7KH FXUUHQW µORRVH DQG OLJKW¶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
6XPPDU\ RI UHFRPPHQGDWLRQV WR WKH ([HFXWLYH 'LUHFWRU x &RQWLQXH WR JLYH IXOO VXSSRUW WR WKH 81 +DELWDW $*)( x 0RELOLVH VHHG UHVRXUFHV IRU WKH IROORZLQJ R )XQFWLRQLQJ RI WKH JURXS LQFOXGLQJ PHHWLQJV JOREDO PRQLWRULQJ DQG UHSRUWLQJ R &RQGXFWLQJ RI FRQFLOLDWRU\ PLVVLRQV PRQLWRULQJ DQG IROORZ XS SURYLVLRQ RI LQIRUPDWLRQ DQG VSHFLDOLVHG WUDLQLQJ x 'H¿QH DGHTXDWH FKDQQHOV IRU UHJXODU FRPPXQLFDWLRQ LQ RUGHU WR IXOO\ PHHW WKH $*)(¶V DGYLVRU\ IXQFWLRQ x /LQN XS WKH DFWLYLWLHV RI $*)( ZLWK WKH PRQLWRULQJ RI WKH 0LOOHQQLXP 'HYHORSPHQW *RDOV LQ SDUWLFXODU *RDO DQG WKH TXHVWLRQ RI VHFXULW\ RI WHQXUH DQG HYLFWLRQV $*)( FRXOG EH JLYHQ D UROH WR PRQLWRU QRW RQO\ KRZ PDQ\ HYLFWLRQV KDYH EHHQ DYRLGHG EXW DOVR KRZ WKLV ZDV DFKLHYHG
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
x 3URGXFH D *OREDO (YLFWLRQV 5HSRUW WR EH ODXQFKHG DW WKH :RUOG 8UEDQ )RUXP LQ 9DQFRXYHU x %URDGHQ WKH SHUVSHFWLYH RI VHFXULW\ RI WHQXUH EH\RQG KRXVLQJ DQG ODQG IRU KRXVLQJ (YLFWLRQV DUH WKUHDWHQLQJ VPDOO SURGXFHUV DQG XUEDQ DQG SHUL XUEDQ IDUPHUV ZKR FDQ FRQWULEXWH WR KXQJHU PLWLJDWLRQ LQ PDQ\ FLWLHV
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¿VKHUPHQ WKUHDWHQHG E\ WKH SRVW 7VXQDPL UHFRQVWUXFWLRQ ODZ WR WKH WHQDQWV RI WKH KLVWRULF FHQWUH RI %HLMLQJ ZKR DUH UHPRYHG IURP WKHLU SODFH LQ WKH QDPH RI LQYHVWPHQWV OLQNHG WR WKH 2O\PSLFV JDPHV DQG WR WKH KXQGUHGV RI WKRXVDQGV RI FKLOGUHQ ZRPHQ DQG PHQ ZKR OLYH LQ FRQVWDQW WKUHDW RI HYLFWLRQV LQVWHDG RI OLYLQJ LQ SHDFH DQG GLJQLW\
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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³E\ WR KDYH DFKLHYHG D VLJQL¿FDQW LPSURYHPHQW LQ WKH OLYHV RI DW OHDVW PLOOLRQ VOXP GZHOOHUV DV SURSRVHG LQ WKH &LWLHV :LWKRXW 6OXPV LQLWLDWLYH´ DV UHFRQ¿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¿FLHQW ¿QDQFLDO UHVRXUFHV DQG DIIRUGDEOH ODQG IRU KRXVLQJ GHYHORSPHQW LQ PDQ\ DUHDV 7DNLQJ QRWH RI WKH UHFRPPHQGDWLRQV RI WKH :RUOG 8UEDQ )RUXP DW LWV ¿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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
ZKLFK LQ LWV SDUDJUDSK UHFRQ¿UPV LQWHU DOLD WKH UROH RI 81 +$%,7$7 LQ DGYRFDWLQJ SURPRWLQJ PRQLWRULQJ DQG DVVHVVLQJ SURJUHVV PDGH LQ LPSOHPHQWLQJ WKH JRDOV RI DGHTXDWH VKHOWHU IRU DOO DQG VXVWDLQDEOH KXPDQ VHWWOHPHQWV LQ DOO FRXQWULHV 7DNLQJ LQWR DFFRXQW SDUDJUDSK RI SDUW 9, RI *HQHUDO $VVHPEO\ UHVROXWLRQ RI 'HFHPEHU ZKLFK HQFRXUDJHV 0HPEHU 6WDWHV DQG +DELWDW $JHQGD SDUWQHUV WR SURYLGH VXSSRUW IRU WKH SUHSDUDWLRQ RI WKH *OREDO 5HSRUW RQ +XPDQ 6HWWOHPHQWV DQG WKH 6WDWH RI WKH :RUOG¶V &LWLHV UHSRUW RQ D ELHQQLDO EDVLV VR DV WR UDLVH DZDUHQHVV RI KXPDQ VHWWOHPHQWV DQG WR SURYLGH LQIRUPDWLRQ RQ XUEDQ FRQGLWLRQV DQG WUHQGV DURXQG WKH ZRUOG $FNQRZOHGJLQJ DOVR WKDW VLJQL¿FDQWO\ LPSURYLQJ WKH OLYHV RI VOXP GZHOOHUV UHTXLUHV GHWDLOHG NQRZOHGJH DW D GLVDJJUHJDWHG OHYHO RI WKH H[WHQW RI VXFK SRYHUW\ (QGRUVLQJ DQG VXSSRUWLQJ WKH NH\ UROH RI 81 +$%,7$7 LQ LPSOHPHQWLQJ DQG PRQLWRULQJ WKH JRDO RQ LPSURYLQJ WKH OLYHV RI VOXP GZHOOHUV DQG DOVR WKH JRDO RQ VXVWDLQDEOH DFFHVV WR VDIH GULQNLQJ ZDWHU DQG ZDVWH PDQDJHPHQW DV DJUHHG LQ WKH 8QLWHG 1DWLRQV 0LOOHQQLXP 'HFODUDWLRQ 5HTXHVWV WKH ([HFXWLYH 'LUHFWRU WR FRQWLQXH WR ZRUN WR IXO¿O WKH JRDO RI LPSURYLQJ WKH OLYHV RI VOXP GZHOOHUV DQG WR SUHVHQW D VWUDWHJ\ SDSHU WKHUHRQ WR WKH &RPPLWWHH RI 3HUPDQHQW 5HSUHVHQWDWLYHV IRU LWV DSSURYDO 5HTXHVWV WKH ([HFXWLYH 'LUHFWRU WR H[SORUH DOO DYDLODEOH RSWLRQV WR LQFUHDVH WKH ¿QDQFLDO UHVRXUFHV ZKLFK FRXOG VXSSRUW WKH DFKLHYHPHQW RI WKDW JRDO WDNLQJ LQWR DFFRXQW WKH 0RQWHUUH\ &RQVHQVXV RI WKH ,QWHUQDWLRQDO &RQIHUHQFH RQ )LQDQFLQJ IRU 'HYHORSPHQW ,QYLWHV *RYHUQPHQWV DQG ORFDO DXWKRULWLHV DV DSSURSULDWH WR DOORFDWH WKH QHFHVVDU\ ¿QDQFLDO KXPDQ DQG WHFKQLFDO UHVRXUFHV WR PHHW WKH KXPDQ VHWWOHPHQWV UHODWHG JRDOV RI WKH 8QLWHG 1DWLRQV 0LOOHQQLXP 'HFODUDWLRQ DQG WR GHYHORS DQG LPSOHPHQW QDWLRQDO DQG ORFDO DFWLRQ SODQV IRU VOXP XSJUDGLQJ (QFRXUDJHV *RYHUQPHQWV WR FUHDWH FRQGLWLRQV FRQGXFLYH WR WUDQVSDUHQW UHVSRQVLEOH DFFRXQWDEOH MXVW HIIHFWLYH DQG HI¿FLHQW JRYHUQDQFH RI FLWLHV DQG RWKHU KXPDQ VHWWOHPHQWV DV DQ LPSRUWDQW FRQWULEXWLRQ WRZDUGV DFKLHYLQJ WKH JRDO RI LPSURYLQJ WKH OLYHV RI VOXP GZHOOHUV $OVR UHTXHVWV WKH ([HFXWLYH 'LUHFWRU WR IXUWKHU GHYHORS DQG VWUHQJWKHQ 81 +$%,7$7 FROODERUDWLRQ ZLWK WKH &LWLHV $OOLDQFH DOO UHOHYDQW VWDNHKROGHUV DQG RWKHU 8QLWHG 1DWLRQV DJHQFLHV DQG LQFOXGLQJ WKH %UHWWRQ :RRGV LQVWLWXWLRQV RWKHU LQWHUQDWLRQDO ¿QDQFLQJ LQVWLWXWLRQV DQG ELODWHUDO GHYHORSPHQW DJHQFLHV LQ RUGHU WR DFKLHYH WKLV JRDO )XUWKHU UHTXHVWV WKH ([HFXWLYH 'LUHFWRU WR DVVLVW *RYHUQPHQWV DW WKHLU UHTXHVW LQ GHYHORSLQJ HIIHFWLYH SROLF\ JXLGHOLQHV DQG DFWLRQ SODQV WR WKLV HIIHFW LQ SDUWLFXODU WKURXJK D VXVWDLQHG LPSOHPHQWDWLRQ RI WKH WZR JOREDO FDPSDLJQV RQ VHFXUH WHQXUH DQG XUEDQ JRYHUQDQFH 5HTXHVWV WKH ([HFXWLYH 'LUHFWRU LQ OLQH ZLWK WKH UHFRPPHQGDWLRQV RI WKH :RUOG 8UEDQ )RUXP DW LWV ¿UVW VHVVLRQ WR HVWDEOLVK DQ DGYLVRU\ JURXS WR PRQLWRU DQG LGHQWLI\ DQG LI VR UHTXHVWHG WR SURPRWH DOWHUQDWLYHV WR XQODZIXO HYLFWLRQV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$OVR UHTXHVWV WKH ([HFXWLYH 'LUHFWRU WR VWUHQJWKHQ WKH *OREDO 8UEDQ 2EVHUYDWRU\ DV D OHDUQLQJ FHQWUH DEOH WR UHVSRQG WR WKH GHPDQG EDVHG H[SDQVLRQ RI ORFDO XUEDQ REVHUYDWRULHV ZLWK SDUWQHUVKLSV IURP UHVHDUFK FHQWUHV RI H[FHOOHQFH WR HQDEOH WKH *OREDO 8UEDQ 2EVHUYDWRU\ WR FRQWLQXH WR DVVLVW FRXQWULHV DQG FLWLHV LQ FROOHFWLQJ DQDO\VLQJ DQG XVLQJ XUEDQ LQGLFDWRUV (QFRXUDJHV WKH ([HFXWLYH 'LUHFWRU WR FRQWLQXH GHYHORSLQJ SDUWQHUVKLSV ZLWK QDWLRQDO VWDWLVWLFDO RI¿FHV WKH 8QLWHG 1DWLRQV 6WDWLVWLFDO 'LYLVLRQ DQG UHJLRQDO 8QLWHG 1DWLRQV HFRQRPLF FRPPLVVLRQV WR LQFRUSRUDWH WKH VOXP DQG WKH VHFXUH WHQXUH LQGLFHV LQWR QDWLRQDO SRSXODWLRQ FHQVXVHV DQG RWKHU VXUYH\V DQG WR HQFRXUDJH WKH UHOHDVH RI GDWD WKXV FROOHFWHG LQWR WKH SXEOLF GRPDLQ ,QYLWHV 0HPEHU 6WDWHV DQG +DELWDW $JHQGD SDUWQHUV LQ D SRVLWLRQ WR GR VR WR SURYLGH ¿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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; 0LQXWHV RI ,QDXJXUDO 0HHWLQJ RI $*)( 0DUFK 81,7(' 1$7,216
+63 +63 $*)(
8QLWHG 1DWLRQV +XPDQ 81 +$%,7$7
'LVWU *HQHUDO $SULO 2ULJLQDO (QJOLVK
6HWWOHPHQWV 3URJUDPPH
$GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)(
6HFRQG PHHWLQJ 1HZ<RUN $SULO
0LQXWHV RI ,QDXJXUDO 0HHWLQJ +HOG RQ 0DUFK
2SHQLQJ RI WKH PHHWLQJ
x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
,QWURGXFWRU\ SUHVHQWDWLRQV RI 81 +$%,7$7 DFWLYLWLHV UHODWHG WR WKH REMHFWLYHV RI WKH $GYLVRU\ *URXS x ) 7HEEDO JDYH D EULHI SRZHU SRLQW SUHVHQWDWLRQ RQ WKH EDFNJURXQG RI $*)( $*)( ZRXOG SUHVHQW D ZRUNLQJ GRFXPHQW DW WKH 6HFRQG VHVVLRQ RI WKH :RUOG 8UEDQ )RUXP LQ %DUFHORQD 6SDLQ IURP 6HSWHPEHU ) 7HEEDO WDEOHG 725 GUDIWHG E\ WKH VHFUHWDULDW +RZHYHU KH SRLQWHG RXW WKDW WKH $*)( PHPEHUV KDG WR EHHI LW XS +H GUHZ XS DQ RUJDQL]DWLRQDO VWUXFWXUH PDGH XS RI D FRQYHQHU UHJLRQDO FR RUGLQDWHV DQG D VHFUHWDULDW 7KHUH ZDV DOVR QHHG WR GH¿QH WKHLU UROHV x
6HOPDQ (UJXGHQ WKH &RRUGLQDWRU PDGH D EULHI SUHVHQWDWLRQ RQ WKH +RXVLQJ 5LJKWV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
3URJUDPPH 7KH SURJUDPPH ZRUNV LQ ¿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x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
'LVFXVVLRQV DQG DSSURYDO RI 7HUPV RI 5HIHUHQFH WR LQFOXGH WKH IROORZLQJ LVVXHV i i i i
5ROH DQG GHVLJQDWLRQ RI FRQYHQHU 5ROH DQG GHVLJQDWLRQ RI UHJLRQDO FRQYHQHUV 5ROH DQG GHVLJQDWLRQ RI VHFUHWDULDW LQVWLWXWLRQ 'LVFXVVLRQ RI SURFHGXUHV WR DFFHVV FRXQWULHV FLWLHV LQ YLHZ RI HQJDJLQJ FRQFLOLDWLRQ IDFW ¿QGLQJ PLVVLRQV
x ,QWURGXFLQJ WKLV LWHP ) 7HEEDO DVNHG WKH PHPEHUV RI $*)( WR QRPLQDWH RQH RI LWV RZQ WR FKDLU WKH PHHWLQJ 6 %RRQ\DEDQFKD SURSRVHG WKDW WKH PHPEHUV VKRXOG ¿UVW EUDLQVWRUP WKH LVVXH RI WKH WDVNIRUFH 7KH JURXS ZDV LQ DJUHHPHQW WKDW WKHUH ZDV QHHG WR EUDLQVWRUP LGHQWLI\ WKH QHHGV RI WKLV JURXS 7KH PHPEHUV DJUHHG WKDW WKHUH ZDV D ORW RI JURXQGZRUN FRYHUHG LQ IRUFHG HYLFWLRQV DQG DYDLODEOH LQ 81 UHSRUWV 7KHVH UHSRUWV QHHGHG WR EH WUDQVIRUPHG LQWR DFWLRQ 7KH PDLQ TXHVWLRQ ZDV KRZ WKLV JURXS ZRXOG EH GLIIHUHQW IURP DOO WKH RWKHU JURXSV ZRUNV EHLQJ FDUULHG RXW RQ IRUFHG HYLFWLRQV 7KH PHPEHUV FRQFXUUHG WKDW WKH UHYLHZ RI WKH GUDIWHG 725¶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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
LQ SUHYHQWLQJ IRUFHG HYLFWLRQV ZDV UDLVHG DQG ZKDW ZDV WKH EHVW ZD\ LQ IDFLQJ DQ\ OLPLWDWLRQ RQ 81 +$%,7$7 x 0 *D\H KLJKOLJKWHG WKH LVVXH RI GLIIHUHQFH LQ FXOWXUHV &XOWXUDO GLIIHUHQFHV ZRXOG DIIHFW WKH ZD\ RI KDQGOLQJ IRUFHG HYLFWLRQV +H LOOXVWUDWHG WKLV E\ UHSRUWLQJ RQ WKH UHFHQW HYLFWLRQV WKDW WRRN SODFH LQ 6HQHJDO DPRQJ WKH PLGGOH FODVV 7KLV IRUFHG HYLFWLRQ ZDV OLQNHG WR WKH JRYHUQPHQW 0 *D\H DVNHG LI WKH JURXS ZDV D WDVN IRUFH DGYLVRU\ JURXS RU D UHSRUWLQJ JURXS WR WKH 81 +$%,7$7 +H SURSRVHG WKDW D FKDQJH LQ WKH QDPH ³DGYLVRU\´ ZRXOG SUREDEO\ FKDQJH WKH LPDJH RI WKH ERG\ LQ D SRVLWLYH ZD\ DQG WKDW WKLV FODUL¿FDWLRQ ZDV QHFHVVDU\ LQ RUGHU WR NQRZ WKH UROH RI WKH $*)( DQG LWV LPSDFW ,W ZDV DJUHHG WKDW ) 7HEEDO $ =XELOODJD WKH OHJDO DGYLVRU RI 81 +$%,7$7 EH FRQVXOWHG DQG LI DYDLODEOH FRPH WR WKH PHHWLQJ WR FODULI\ WKH JXLGHOLQHV JRYHUQLQJ DQ DGYLVRU\ ERG\ WR 81 +$%,7$7 x & 2WWROLQL KLJKOLJKWHG WKH QHHG IRU HDFK PHPEHU WR UHDOL]H WKH QHHG IRU D ERWWRP XS DSSURDFK LQ RUGHU WR DFKLHYH UHDOL]DWLRQ 7KHUH ZDV QHHG WR XQGHUVWDQG DQG UH ODXQFK ]HUR HYLFWLRQ OLNH LQ WKH FLW\ RI 0XPEDL 1HWZRUNLQJ ERWK H[WHUQDOO\ DQG LQWHUQDOO\ IURP 1*2¶V FLYLO ERGLHV &%2¶V ZDV IXQGDPHQWDO +RZHYHU WKH TXHVWLRQ ZDV KRZ ODUJH ZDV $*)( WR EHFRPH DQG KRZ ZHUH RWKHU JUDVV URRW ERGLHV WR EH LQFRUSRUDWHG LQWR $*)(" x - GX 3OHVVLV SRLQWHG RXW WKDW IRUFHG HYLFWLRQ ZDV JHWWLQJ RXW RI FRQWURO JOREDOO\ 7KH IRUFHV WKDW ZHUH FDXVLQJ IRUFHG HYLFWLRQV ZHUH DW DOO OHYHOV DQG GLIIHUHQW GLPHQVLRQV +H HODERUDWHG E\ FLWLQJ WKH UHFHQW HYLFWLRQV LQ 1DLUREL ZKLFK PD\ KDYH RFFXUUHG GXH WR GRQRU UHTXLUHPHQWV XSRQ WKH .HQ\DQ JRYHUQPHQW 7KH FLW\ RI 6HRXO LQ .RUHD KDG WR EH EHDXWL¿HG GXULQJ WKH 2O\PSLF *DPHV WKLV UHVXOWHG LQ PDVVLYH IRUFHG HYLFWLRQV 7KH ZD\ &2+5( YLHZHG IRUFHG HYLFWLRQV ZDV GLIIHUHQW WR RWKHU RUJDQL]DWLRQ¶V YLHZ +H WKHUHIRUH SURSRVHG WKDW $*)( VKRXOG H[DPLQH )( DW DOO OHYHOV DQG GLPHQVLRQV +H SURSRVHG WKH QHHG IRU WKH JURXS WR FRPH XS ZLWK FDVH VWXGLHV JXLGHOLQHV WRRO±NLW DQG GHYHORS EHVW SUDFWLFHV 5HIHUULQJ WR 5HVROXWLRQ DUWLFOH KH TXHVWLRQHG WKH ZRUGLQJ«UHTXHVWHG« E\ ZKRP +H DOVR UHIHUUHG WR WKH GUDIW 725 SLQSRLQWLQJ WKDW LW GLG QRW VD\ 35(9(17(' &KULV :LOOLDPV DSSUHFLDWHG WKH FKDOOHQJH IDFLQJ WKH JURXS DQG SRLQWHG RXW WKDW WKH JURXS ZRXOG EH UHVSRQVLEOH IRU PRQLWRULQJ DQG LGHQWLI\LQJ FDVHV RI IRUFHG HYLFWLRQV DURXQG WKH ZRUOG DQG RQ WKH RWKHU KDQG UHVSRQG WR WKLV 7KLV UHTXLUHG FRQFHUWHG HIIRUWV IURP DOO PHPEHUV GXH WR WKH PDJQLWXGH RI IRUFHG HYLFWLRQV 6 6KDQNDUGDVV DJUHHG ZLWK - GX 3OHVVLV¶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¿HG +RZHYHU WKH UHVLGHQWV RI .LEHUD QHHGHG DQ DOWHUQDWLYH 7KLV FDVH VWXG\ LOOXVWUDWHV WKH VROXWLRQ ZDV QRW LQ OHJLVODWLRQ EXW LQ VHHNLQJ IRU DOWHUQDWLYH ODQG IRU WKH
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
VOXP GZHOOHUV $OO ZHUH LQ DJUHHPHQW WKDW LQ WKLV VFHQDULR GLSORPDF\ OHJLVODWLRQ ZDV MXVW RQH RI WKH DSSURDFKHV WR EH DSSOLHG EXW WKHUH ZDV DOVR QHHG IRU LQWHQVH OREE\LQJ QHJRWLDWLRQ LQ RUGHU WR SUH HPSW IRUFHG HYLFWLRQV * 5RGULJXH] QRWHG WKDW WKHUH ZDV QHHG IRU PRQLWRULQJ WKH YRLFHV RI WKH VOXP GZHOOHUV +H SURSRVHG WKDW LQ WKH 725 ³OHJDO DVVLVWDQFH´ VKRXOG UHDG ³WHFKQLFDO DVVLVWDQFH´ WKLV ZRXOG LQFOXGH FRPPXQLW\ RUJDQL]DWLRQV DQG DOVR LQFOXGH WHFKQLFDO UHSRUWV +H HPSKDVL]HG WKH LPSRUWDQFH RI NQRZLQJ ZKHUH )( ZDV DFWXDOO\ WDNLQJ SODFH +H SURSRVHG WKDW $*)( VKRXOG WKHQ WUDQVODWH WKHVH ¿QGLQJ LQWR DFWLRQ DQG QRW MXVW GZHOO RQ EHLQJ DQ DGYLVRU\ ERG\ 0 *D\H DJUHHG ZLWK 6 %RRQ\DEDQFKD¶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¿UH¿JKWLQJ IRUFHG HYLFWLRQV ZDV QRW WKH VROXWLRQ )RUFHG HYLFWLRQV QHHGV WR EH YLHZHG DW D EURDGHU VFDOH 7KH ZD\ IRUZDUG ZDV WR EXLOG D VWURQJ SHRSOH GULYHQ SURFHVV 7KLV ZRXOG LQ WXUQ DIIHFW WKH SROLWLFDO OHYHO IRU H[DPSOH LQ &DPERGLD WKH SHRSOH¶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
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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¿QGLQJ PLVVLRQ EXW LW FRXOG ZRUN ZLWK SDUWQHUV LQ LWV QHWZRUN 7KH 81 GRHVQ¶W DFW LQWHUYHQH XQOHVV UHTXHVWHG E\ D JRYHUQPHQW WR GR VR KRZHYHU 81 +$%,7$7 KDV D PDQGDWH WR VWRS HYLFWLRQV DQG FDQ GR WKLV RQ WKH UHFRPPHQGDWLRQV RI ZKDW LV JRLQJ RQ LQ WKH FRXQWU\ 7KH PHPEHUV DFNQRZOHGJHG WKH OLPLWDWLRQV IDFLQJ WKH (' LQ WHUPV RI LVVXLQJ SUHVV VWDWHPHQWV WR H[SUHVV DQ RSLQLRQ RQ D VSHFL¿F FDVH RI IRUFHG HYLFWLRQV 7KH FKDOOHQJH EHIRUH $*)( ZDV LGHQWLI\LQJ GLIIHUHQW DSSURDFKHV RQ KRZ WKH (' FRXOG WDFNOH WKLV KXUGOH 7KH EUDLQVWRUPLQJ VHVVLRQ ZDV FRQFOXGHG ZLWK x $ =XELOODJD UHFRPPHQGLQJ WKDW WKH JURXS VKRXOG VWXG\ RWKHU DGYLVRU\ JURXSV ZLWKLQ WKH 81 V\VWHP DQG WDNH SRLQWHUV IURP WKHP x 8VH H[LVWLQJ PHFKDQLVP RQ WKH JURXQG WR FDWDSXOW $*)( LQWR D SRZHUIXO HIIHFWLYH RUJDQ x (QHUJ\ DQG QHWZRUNLQJ VKRXOG EH LQ DUHDV ZKHUH WKH\ FDQ PDNH D FKDQJH x ,GHQWLI\ H[SHUWV ZLWK GLIIHUHQW FDSDFLWLHV OHJDO GLSORPDF\ FRQÃ&#x20AC;LFW UHVROXWLRQ HWF
x 7KH ZD\ WR GHDO ZLWK HYLFWLRQ QHHGV WR EH PRUH GLYHUVH DQG G\QDPLF E\ FKDQJLQJ WKH VWUXFWXUH WKDW FDXVHV HYLFWLRQ x 0HPEHUV SURSRVHG - %ROQLFN DV FKDLU x 7KH PHPEHUV DJUHHG WKDW WKH\ VKRXOG ¿UVW IRUPXODWH WKH ZRUN SODQ ZKLFK ZLOO LQ WXUQ LQIRUP WKH RUJDQL]DWLRQDO VWUXFWXUH RI $*)( 7KH\ DOVR GUHZ XS LVVXHV WKDW ZRXOG EH SXW LQ WKH ZRUN SODQ
$&7,21 72 %( 7$.(1 x $*)( VKRXOG LGHQWLI\ FDVH VWXGLHV WKDW ZLOO EH XVHG WR LOOXVWUDWH WR WKH (' DFWXDO HYLFWLRQ FDVHV (DFK PHPEHU ZRXOG FRQVXOW DW FRQVWLWXHQF\ OHYHO DQG LGHQWLI\ DUHDV RI LQWHUYHQWLRQ RQ WKH JURXQG $*)( ZRXOG WKHQ LGHQWLI\ FDVH VWXGLHV WKDW WKH\ ZRXOG IRUP SDUW RI WKHLU ZRUN SODQ 7KH FDVH VWXG\ QHHGV WR KDYH D JRRG SURSRVDO DQG WKH SHRSOH RQ WKH JURXQG KDYH WR EH WKH NH\ DFWRUV DQG VKRXOG EH WKH RQHV GULYLQJ WKH SURFHVV x 7KH IROORZLQJ LQWHULP VWUXFWXUH ZDV SURSRVHG DQG DJUHHG XSRQ 5HJLRQDO &R RUGLQDWRUV $VLD / $PHULFD 1RUWK $IULFD
6 %RRQ\DEDQFKD * 5RGULJXH] / 2VRULR & 2WWROLQL 0 *D\H - :HUX & 3DWKHU
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
x -HDQ GX 3OHVVLV DQG - %ROQLFN DJUHHG WR EH UHVSRQVLEOH IRU GUDIWLQJ SURFHGXUHV 725 DQG GHYHORS D WRRO NLW 7KH\ ZRXOG DOVR DVVLVW WKH 5HJLRQDO &RRUGLQDWRUV LQ GUDZLQJ DFWLRQ SODQ x 6 %RRQ\DEDQFKD DJUHHG WR DFW DV LQWHULP FRQYHQHU 6KH ZRXOG EH WKH IRFDO SRLQW IRU DOO PHPEHUV DQG ZRXOG UHFHLYH DOO WKH SURSRVDOV IRU FDVH VWXGLHV x 7KH 6HFUHWDULDW ZRXOG EH UHSUHVHQWHG E\ ) 7HEEDO 6 %DIIRH %RQQLH ) %HHUQDHUWV 7KH\ ZHUH FKDUJHG ZLWK WKH UHVSRQVLELOLW\ RI VHQGLQJ WKH RXWFRPH RI WKLV PHHWLQJ DV ZHOO DV VHQGLQJ RXW WKH QRWL¿FDWLRQ RI WKH QH[W PHHWLQJ 7KLV ZRXOG RQO\ EH IRU WKH LQWHULP SHULRG
$2% :8) ) 7HEEDO LQIRUPHG WKH PHPEHUV WKDW KH KDG ERRNHG WKH JURXS WR KROG D FORVHG GRRU PHHWLQJ RQ 0RQGD\ 6HSWHPEHU IURP SP ± SP 2Q :HGQHVGD\ 6HSWHPEHU LQ WKH *URXS KDG EHHQ VFKHGXOHG IRU DQ RSHQ ±HQGHG IRUXP GLDORJXH LQ WKH DIWHUQRRQ ZLWK D VLWWLQJ FDSDFLW\ RI 7KH PHPEHUV UHFRPPHQGHG WKHVH DUUDQJHPHQWV DQG XQGHUVFRUHG WKH LPSRUWDQFH RI XVLQJ WKLV IRUXP DV D SODWIRUP WR PDUNHW WKH JURXS DQG UDLVH DZDUHQHVV WR HYHU\RQH LQ RUGHU WR KDYH RSHQ VROXWLRQ 1H[W 0HHWLQJ ,W ZDV DJUHHG WKDW WKH JURXS PHPEHUV ZKR ZHUH DWWHQGLQJ WKH &RPPLVVLRQ RQ 6XVWDLQDEOH 'HYHORSPHQW LQ 1HZ <RUN IURP $SULO 0D\ FRXOG XVH WKLV RSSRUWXQLW\ WR KDYH DQ RSHQ LQIRUPDO $*)( PHHWLQJ WR ¿QDOL]H D ZRUN SODQ SULRU WR WKH PHHWLQJ LQ 6HSWHPEHU 7KH DSSURSULDWH WLPH ZDV WR EH LGHQWL¿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¿FDWLRQ RI ¿UVW PHHWLQJ ,W ZDV DJUHHG WKDW 6 %DIIRH %RQQLH DQG 6 6KDQNDUGDVV ZRXOG KDYH D SUHVV UHOHDVH SODFHG RQ WKH 81 +$%,7$7 ZHEVLWH RXWOLQLQJ WKH RXWFRPH RI WKH PHHWLQJ 7KH JURXS QRWHG ZLWK DSSUHFLDWLRQ WKH HIIRUW SXW LQWR WKH RUJDQL]DWLRQ RI WKLV LQDXJXUDO PHHWLQJ DQG KRSHG WKDW WKH\ ZRXOG DOO FRQWLQXH ZLWK WKH VDPH HQWKXVLDVP ) 7HEEDO FORVHG WKH PHHWLQJ ZLWK D YRWH RI WKDQNV DW SP
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
3UHVHQW -HDQ GX 3OHVVLV &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( MHDQ#FRKUH RUJ -RHO %ROQLFN 3HRSOHV 'LDORJXH 6RXWK $IULFD MRHOE#FRXUF RUJ ]D 6RPVRRN %RRQ\DEDQFKD &RPPXQLW\ 2UJDQL]DWLRQV 'HYHORSPHQW ,QVWLWXWH 7KDLODQG DFKUVHF#HPDLO NVF QHW VRPVRRN#OR[LQIR FR WK )UHWKHLP $WOH 'HSXW\ 3HUPDQHQW 5HSUHVHQWDWLYH RI 1RUZD\ WR 81 +$%,7$7 )UHWKHLP
$WOH DWOH IUHWKHLP#PID QR! 0DOLFN *D\H (1'$ 7LHUV 0RQGH 6HQHJDO UXS#HQGD VQ /HWLFLD 2VRULR &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV /DWLQ $PHULFD /DWLQ $PHULFD FRKUHDPHULFDV#FRKUH RUJ UVI #YLD UV QHW &HVDUH 2WWROLQL &RRUGLQDWRU RI WKH ,QWHUQDWLRQDO $OOLDQFH RI WKH ,QKDELWDQWV FHVDUH RWWROLQL#OLEHUR LW LQIR#KDELWDQWV RUJ &RXJODQ 3DWKHU 6HFUHWDU\ RI KRXVLQJ 'XUEDQ 6RXWK $IULFD SDWKHUF#GXUEDQ JRY ]D *XLOOHUPR 5RGUtJXH] ([HFXWLYH &RPPLVVLRQ RI WKH &RQWLQHQWDO IURQW RI FRPPXQLW\ RUJDQL]DWLRQV /DWLQ $PHULFD PHPRIFRF#KRWPDLO FRP -DQH :HUX 3DPRMD 7UXVW .HQ\D /DQGULWH#ZDQDQFKL FRP &KULV :LOOLDPV 2I¿FH RI WKH ([HFXWLYH 'LUHFWRU 81 +$%,7$7 6KDUDG 6KDQNDUGDVV 3UHVV 0HGLD 6SRNHVSHUVRQ 81 +$%,7$7 $QWRQLR =XELOODJD /HJDO $GYLVRU 81 +$%,7$7 )DURXN 7HEEDO 6KHOWHU %UDQFK 81 +$%,7$7 6DQGUD %DIIRH %RQQLH &DPSDLJQ RQ 6HFXUH 7HQXUH 81 +$%,7$7 6HOPDQ (UJXGHQ +RXVLQJ 5LJKWV 3URJUDPPH 81 +$%,7$7 ,QJH -HQVHQ +RXVLQJ 3ROLF\ 6HFWLRQ 81 +$%,7$7 8ULN :HVWPDQ 6KHOWHU %UDQFK 81 +$%,7$7 )UHGULF %HHUQDHUWV &DPSDLJQ RQ 6HFXUH 7HQXUH 81 +$%,7$7 $QQ 0XJHQL 6KHOWHU %UDQFK 81 +$%,7$7
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$11(; 0,187(6 2) $*)( 0((7,1* $35,/
+63
81,7(' 1$7,216
+63 $*)(
8QLWHG 1DWLRQV +XPDQ 81 +$%,7$7
6HWWOHPHQWV 3URJUDPPH
'LVWU *HQHUDO $SULO 2ULJLQDO (QJOLVK
$GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)(
6HFRQG PHHWLQJ 1HZ <RUN $SULO
'UDIW 0LQXWHV RI 0HHWLQJ +HOG RQ $SULO 1HZ <RUN 3UHVHQW -HDQ GX 3OHVVLV 0DOLFN *D\H &HVDUH 2WWROLQL ,QJHU /LQGJUHQ )DURXN 7HEEDO -RFNLQ $USXWKDP &RXJODQ 3DWKHU 3DXOR 7HL[HLUD
<YHV &DEDQQHV *XLOOHUPR 5RGULJXH] /HWLFLD 2VRULR 3HU 1\JDDUG 6DQGUD %DIIRH %RQQLH -RHO %ROQLFN 'DYLG 6DWKHUZDLWH 6DPVRRN %RRQ\DEDQFKD
0RUQLQJ 6HVVLRQ 2SHQLQJ RI WKH 0HHWLQJ x 'XH WR WKH IDFW WKDW VRPH PHPEHUV ZHUH DWWHQGLQJ D SDUDOOHO HYHQW LQ WKH PRUQLQJ WKH PHHWLQJ VSHQW WKH PRUQLQJ JRLQJ RYHU VRPH JHQHUDO EDFNJURXQG PDWHULDO WR EULQJ VRPH PHPEHUV XS WR VSHHG ZLWK WKH ¿UVW PHHWLQJ LQ 1DLUREL )DURXN RSHQHG WKH PHHWLQJ E\ SUHVHQWLQJ D EULHI EDFNJURXQG RQ 81 +$%,7$7 WKH 6HFXUH 7HQXUH &DPSDLJQ DQG WKH UHDVRQV IRU VHWWLQJ XS WKH $GYLVRU\ *URXS $ URXQG RI LQWURGXFWLRQV ZDV PDGH DQG VRPH PHPEHUV PDGH EULHI SUHVHQWDWLRQV RQ WKHLU EDFNJURXQGV DQG WKH DFWLYLWLHV WKH\ DUH XQGHUWDNLQJ x 3HU 1\JDDUG EULHIHG WKH PHHWLQJ RQ KLV ZRUN ZLWK 81 +$%,7$7 VLQFH DQG
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
WKH FROODERUDWLRQ EHWZHHQ 81 +$%,7$7 DQG WKH JRYHUQPHQW RI 1RUZD\ +H LQIRUPHG WKH PHHWLQJ RI KLV JRYHUQPHQW¶V ¿QDQFLDO VXSSRUW WR 81 +$%,7$7 DQG WKH SRVVLELOLW\ RI VRIW HDUPDUNLQJ WR LQFOXGH WKH *OREDO &DPSDLJQ IRU 6HFXUH 7HQXUH x $ JHQHUDO GLVFXVVLRQ HQVXHG DURXQG WKH LVVXH RI XQODZIXO HYLFWLRQV DQG IRUFHG HYLFWLRQV DV LW SHUWDLQV WR HYLFWLRQV SXUVXDQW WR QDWLRQDO ODZ ,W ZDV SRLQWHG RXW WKDW WKH PDQGDWH OLPLWV $*)( WR GHDOLQJ ZLWK µXQODZIXO HYLFWLRQV¶ DQG WKDW WKH JURXS FDQ EH LQQRYDWLYH LQ LWV LQWHUSUHWDWLRQ E\ PHDVXULQJ HYLFWLRQV DJDLQVW LQWHUQDWLRQDO OHJDO LQVWUXPHQWV ZKLFK ZLOO PDNH LW SRVVLEOH WR LQFOXGH PRVW IRUFHG HYLFWLRQV ,W ZDV DJUHHG WKDW WKHUH ZDV D QHHG IRU WKH JURXS WR JDLQ VXEVWDQWLYH XQGHUVWDQGLQJ ERWK RI LQWHUQDWLRQDO OHJDO LQVWUXPHQWV DQG QDWLRQDO ODZV RQ WKH LVVXH DQG WKDW WKH JURXS VKRXOG SURGXFH D SDSHU WR FRYHU WKH LVVXH JLYLQJ FOHDU LQGLFDWLRQV RI WKH GLIIHUHQFH EHWZHHQ LOOHJDO IRUFHG DQG ODZIXO HYLFWLRQV x ,W ZDV IXUWKHU DJUHHG WKDW WKH JURXS VKRXOG QRW RQO\ DLP IRU WKH VXVSHQVLRQ RI HYLFWLRQV VLQFH WKLV GRHV SUHFOXGH WKH SRVVLELOLW\ RI HYLFWLRQV LQ WKH IXWXUH ,W LV WKLV SRVVLELOLW\ RI IXWXUH HYLFWLRQ WKDW WUDQVODWHV LQWR ODFN RI WHQXUH VHFXULW\ 7KH JURXS ZDV XUJHG WR FRQVLGHU VHWWLQJ XS D SDQHO WR WKLQN RI DOWHUQDWLYHV WR HYLFWLRQ UHSUHVHQWLQJ PRUH SHUPDQHQW VROXWLRQV DIWHU UHFRPPHQGDWLRQV KDYH EHHQ PDGH WR WKH (' $IWHUQRRQ 6HVVLRQ
$GRSWLRQ RI PLQXWHV RI 0DUFK 0HHWLQJ
x 7KH PHPEHUV ZKR ZHUH DWWHQGLQJ D SDUDOOHO HYHQW MRLQHG WKH PHHWLQJ IRU WKH DIWHUQRRQ VHVVLRQ 3ULRU WR WKH DGRSWLRQ RI WKH PLQXWHV -RHO %ROQLFN ZDV QRPLQDWHG WR FKDLU WKH VHVVLRQ 7KH DJHQGD ZDV DSSURYHG DQG ZLWK QR FRPPHQWV DQG FKDQJHV SURSRVHG WKH PLQXWHV ZHUH DOVR DGRSWHG )LQDOLVDWLRQ RI 725V DQG GHVLJQDWLRQ RI &RQYHQHU )LQDOLVDWLRQ RI 725V x x x x x
x x
-RHO %ROQLFN FKDLUHG WKLV VHFWLRQ RI WKH PHHWLQJ -HDQ GX 3OHVVLV ZHQW RYHU WKH FKDQJHV PDGH WR WKH ¿UVW GUDIW ,WHP WZR SRVVLEOH DOWHUQDWLYHV ZHUH LQFOXGHG EDVHG RQ SURSRVDOV IURP VRPH PHPEHUV ,W ZDV DJUHHG WKDW WKH RULJLQDO REMHFWLYH EH PDLQWDLQHG ,WHP ZDV HGLWHG WR DFFRPPRGDWH WKH OHJDO DGYLFH UHFHLYHG GXULQJ WKH ¿UVW PHHWLQJ RQ WKH PDQGDWH DQG ZKDW DFWLYLWLHV $*)( FRXOG XQGHUWDNH 3 7HL[HLUD UHFRPPHQG FKDQJHV WR LWHP WR LQFOXGH ODQJXDJH WKDW LQFOXGHV ³VXSSRUW DQG HQFRXUDJH FRXQWULHV DQG LQVWLWXWLRQV WR SURYLGH ODQG WHQXUH SURJUDPPHV´ +H IXUWKHU VXJJHVWHG SRVVLEOH ZRUGLQJ WR EH LQFOXGHG DV IROORZV ³VSUHDG RXW EHVW SUDFWLFHV LQ ODQG WHQXUH DOO RYHU WKH ZRUOG´ +H DOVR VXJJHVWHG WKDW DWWHQWLRQ VKRXOG EH JLYHQ XQGHU LWHP WR WKH IDFW WKDW PDQ\ SHRSOH ODFN WKH PHDQV WR VHHN UHGUHVV LQ WKH FRXUWV ,W ZDV DJUHHG WKDW D QRWH ZLOO EH DGGHG WR WKH VHFWLRQ RQ EDFNJURXQG DQG MXVWL¿FDWLRQ RQ 0'*V DQG WKH SRLQWV UDLVHG E\ 3 7HL[HLUD ,W ZDV DOVR DJUHHG WKDW XQGHU LWHP D GLVWLQFWLRQ ZRXOG EH PDGH EHWZHHQ DGYLFH
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
x x
DQG DVVLVWDQFH JLYHQ E\ WKH $*)( WR 81 +$%,7$7 DQG WDVNV ZKLFK WKH $*)( XQGHUWDNHV LQ LWV RZQ ULJKW VXFK DV FROOHFWLRQ RI LQIRUPDWLRQ UHSRUWLQJ RQ LWV DFWLYLWLHV HWF ,W ZDV GHFLGHG WKDW RQFH WKH HGLWV DQG FKDQJHV DUH PDGH WKH 725V ZLOO EH ¿QDOLVHG DQG FLUFXODWHG - GX 3OHVVLV ZDV WDVNHG ZLWK LQFOXGLQJ WKH SURSRVHG VXJJHVWLRQV
1RPLQDWLRQ RI &RQYHQHU x 6 %RRQ\DEDQFKD ZDV QRPLQDWHG E\ - $USXWKDP x < &DEDQQHV ZDV QRPLQDWHG E\ 6 %RRQ\DEDQFKD x -DQH :HUX ZDV QRPLQDWHG E\ - %ROQLFN 7KH JURXS VHOHFWHG <YHV &DEDQQHV DV WKH &RQYHQHU WR EH VXSSRUWHG E\ 6 %RRQ\DEDQFKD -DQH :HUX DQG -HDQ GX 3OHVVLV x x
x
x x
x
x x
x
3UHVHQWDWLRQ DQG ¿QDOLVDWLRQ RI FDVH VWXGLHV DQG ZRUN SODQ - GX 3OHVVLV FKDLUHG WKLV VHFWLRQ RI WKH PHHWLQJ $V DJUHHG LQ WKH ¿UVW PHHWLQJ ZULWWHQ SURSRVDOV ZHUH WR EH VXEPLWWHG E\ WKH LQWHULP UHJLRQDO FRRUGLQDWRUV UHSUHVHQWLQJ DOO WKH UHJLRQV VXJJHVWLQJ ZKLFK VSHFL¿F FDVHV FRXOG EH IRFXVVHG RQ E\ WKH JURXS LQ RUGHU WR GHYHORS LWV DSSURDFK DQG PHWKRGRORJ\ 2QO\ RQH ZULWWHQ SURSRVDO KDG EHHQ VXEPLWWHG 7R FRQWLQXH WKH SURFHVV RUDO SUHVHQWDWLRQV ZHUH PDGH RQ VSHFL¿F FDVHV IURP WKH UHJLRQV ZLWK WKH YLHZ WR VHOHFWLQJ FDVHV WR IRUP SDUW RI WKH ZRUN SODQ DQG GLVFXVVLQJ GLIIHUHQW PHWKRGRORJLHV RI LQWHUYHQWLRQ 7KH FDVHV SUHVHQWHG LQFOXGHG $FFUD LQ *KDQD 6DR 3DROR LQ %UD]LO 3DULV 'DNDU LQ 6HQHJDO DQG WKH 'RPLQLFDQ 5HSXEOLF 7KH JURXS DOVR Ã&#x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¿F FDVHV WKDW ZRXOG LOOXVWUDWH KRZ HYLFWLRQV FDQ EH ERWK SUHYHQWHG DQG UHSODFHG ZLWK FRQVWUXFWLYH DOWHUQDWLYH VWUDWHJLHV EDVHG RQ WKH GLUHFW LQYROYHPHQW RI DOO SDUWLHV ZLWK WKH DIIHFWHG FRPPXQLWLHV WKH SRRU LQ SDUWLFXODU SOD\LQJ D NH\ UROH ,W ZDV DJUHHG WKDW WKH JURXS VKRXOG LQLWLDOO\ DYRLG WKH YHU\ FRPSOLFDWHG FDVHV 7KRVH FRXOG EH WDFNOHG ODWHU ZKHQ LW ZDV FOHDU RQ LWV UROH DQG PHWKRGRORJ\ ,W ZDV SURSRVHG WKDW D WKUHH SURQJHG DSSURDFK VKRXOG EH DGRSWHG LQ FDWHJRULVLQJ WKH DSSURDFK WR WKH FDVHV x ,GHQWLI\ WKH LPPHGLDWH FDVHV x 8WLOLVH WKH H[SHULHQFH DQG NQRZOHGJH EDVH RI WKH QHWZRUNV UHSUHVHQWHG RQ WKH $*)( WR SURPRWH VXFFHVVIXO LQWHUYHQWLRQ LQ LPPHGLDWH FDVHV x 3URPRWH VXFFHVVIXO DSSURDFKHV DQG PHWKRGRORJLHV LQ RUGHU WR UHSOLFDWH WKHLU XVH HOVHZKHUH 7KHUH ZDV GHEDWH RQ ZKHWKHU LW ZRXOG EH EHWWHU IRU WKH JURXS WR VHOHFW RQH SDUWLFXODU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
x
x
x
x x
x
x
x
x
FDVH RQ ZKLFK WR IRFXV WR EH XVHG DV D µFHQWUH IRU OHDUQLQJ¶ ZLWK EURDGHU DSSOLFDWLRQ RU WR ORRN DW D EURDGHU VSHFWUXP RI FDVHV DQG WR GUDZ OHVVRQV IURP WKRVH ,W ZDV DFNQRZOHGJHG WKDW HDFK RI WKHVH DSSURDFKHV KDYH ERWK ULVNV DQG EHQH¿WV ,W ZDV DJUHHG WKDW WKH $*)( VKRXOG QRW EH µMXVW DQRWKHU DGYLVRU\ JURXS¶ 7KH QHWZRUNV DQG FRQQHFWLRQV UHSUHVHQWHG RQ WKH JURXS VKRXOG EH VHHQ DV D SODWIRUP IURP ZKLFK D QXPEHU RI LQQRYDWLYH MRLQW DFWLYLWLHV FRXOG EH ODXQFKHG 7KLV ZRXOG EH GRQH YLD SURSRVHG DFWLRQV WR 81 +$%,7$7 EXW DOVR WKURXJK JURZLQJ FRRSHUDWLRQ RQ DFWXDO FDVHV EHWZHHQ WKH SDUWLFLSDQWV RQ WKH JURXS ,W ZDV UHVROYHG WKDW WKH JURXS ZRXOG µVWDUW ZLWK ZKDW ZH KDYH¶ 7KH JURXS KDV LQYDOXDEOH NQRZOHGJH DQG H[SHULHQFH LQ UHVROYLQJ HYLFWLRQV LQ ZD\V WKDW EHQH¿W WKH SRRU ,W DOVR KDV LQYDOXDEOH LQIRUPDWLRQ RQ WKH PDQ\ FDVHV ZKHUH HYLFWLRQV DUH GXH WR WDNH SODFH XQOHVV VRPHWKLQJ XUJHQW LV GRQH ,QQRYDWLYH 6ROXWLRQV ,W ZDV DJUHHG WKDW -RHO %ROQLFN DQG 'DYLG 6DWWHUWKZDLWH DQG -RHO %ROQLFN ZRXOG OLDLVH ZLWK JURXS PHPEHUV DQG FRPSLOH LQIRUPDWLRQ RQ µEHVW H[SHULHQFH¶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Ã&#x20AC;\ LQIRUPHG WKH JURXS WKDW WZR HYHQWV KDYH EHHQ VFKHGXOHG IRU WKH JURXS IRU WKH :8) 2QH ZLOO EH D FORVHG PHHWLQJ IRU WKH PHPEHUV DQG WKH VHFRQG ZLOO EH DQ RSHQ HYHQW ZKHUH WKH JURXS¶V ¿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¿F LGHDV ZLOO EH SURSRVHG DQG VXEPLWWHG WR WKH 6HFUHWDULDW DQG WKH &RQYHQHU DQG WKDW WKH LGHDV VKRXOG WDNH LQWR DFFRXQW HOHPHQWV ZKLFK ZLOO DWWUDFW SDUWLFLSDQWV DQG OHDG WR DQ LQWHUHVWLQJ GHEDWH ,W ZDV IXUWKHU DJUHHG WKDW WKH JURXS ZLOO SURGXFH D EURFKXUH DQG D RQH SDJHU RQ ZKDW WKH SDUDOOHO HYHQW ZLOO EH DERXW DQG ZKR WKH VSHDNHUV ZLOO EH
3URYLVLRQ $JHQGD DQG RWKHU DUUDQJHPHQWV IRU QH[W PHHWLQJ
x x
7KH QH[W PHHWLQJ ZLOO EH KHOG LQ %DUFHORQD GXULQJ :8) LQ 6HSWHPEHU ,W ZDV DJUHHG WKDW DJHQGD LWHPV ZLOO LQFOXGH SURJUHVV RQ ZKDW WKH JURXS KDV EHHQ ZRUNLQJ DQG DQ $FWLRQ SODQ IRU WKH QH[W WZR \HDUV ,Q DGGLWLRQ DGGLWLRQDO LWHPV ZLOO
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
EH GHWHUPLQHG DQG VXEPLWWHG WR WKH 6HFUHWDULDW
$&7,21 72 %( 81'(57$.(1 x x x x x
$ QRWH RQ 0'*V WR EH DGGHG WR WKH 725 VHFWLRQ RQ EDFNJURXQG DQG MXVWL¿FDWLRQ -HDQ
725V ZLOO EH ¿QDOLVHG DQG FLUFXODWHG RQFH WKH HGLWV DQG FKDQJHV DUH PDGH -HDQ &RPSLOH OLVW RI WKH LPPHGLDWH FDVHV RQ HYLFWLRQV DQG FLUFXODWH LW IRU FRPPHQWV 6RPVRRN DQG -HDQ E\ HQG RI 0D\
3XW WRJHWKHU FDVHV WKDW GHPRQVWUDWH LQQRYDWLYH VROXWLRQV 'DYLG DQG -RHO E\ WKH HQG RI 0D\
&RQYHQHU WR FRQVXOW ZLWK 6HFUHWDULDW DQG PHPEHUV LQ GUDZLQJ XS SODQV IRU :8) ,YHV
$2% 7KH JURXS QRWHG ZLWK DSSUHFLDWLRQ WKH HIIRUW SXW LQWR WKH RUJDQLVDWLRQ RI WKH PHHWLQJ DQG WKH FKDLU FORVHG WKH PHHWLQJ DW SP
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; $*)( 7(506 2) 5()(5(1&( 81,7(' 1$7,216
+63 +63 $*)(
81 +$%,7$7
8QLWHG 1DWLRQV +XPDQ 6HWWOHPHQWV 3URJUDPPH
'LVWU *HQHUDO 2ULJLQDO (QJOLVK
7(506 2) 5()(5(1&( 2) 7+( $'9,625< *5283 21 )25&(' (9,&7,216 %DFNJURXQG DQG MXVWL¿FDWLRQ
6LQFH WKH ODXQFK RI WKH 6HFUHWDU\ *HQHUDO¶V UHIRUP LQ PDLQVWUHDPLQJ RI KXPDQ ULJKWV ZLWKLQ WKH 8QLWHG 1DWLRQV V\VWHP KDV EHFRPH RQH RI WKH PDMRU SULRULWLHV RI WKH 2UJDQL]DWLRQ DQG KDV LQFUHDVLQJO\ EHFRPH D IXQGDPHQWDO HQWU\ SRLQW WR DOO HFRQRPLF DQG VRFLDO GHYHORSPHQW HIIRUWV DW DOO OHYHOV ,Q WKH +DELWDW $JHQGD WKH RXWFRPH RI WKH 6HFRQG 8QLWHG 1DWLRQV &RQIHUHQFH RQ +XPDQ 6HWWOHPHQWV *RYHUQPHQWV UHDI¿UPHG WKHLU FRPPLWPHQW WRZDUGV WKH SURJUHVVLYH UHDOL]DWLRQ RI WKH ULJKW WR DGHTXDWH KRXVLQJ
7KH 0LOOHQQLXP 'HYHORSPHQW *RDOV DQG SDUWLFXODUO\ WDUJHW H[SOLFLWO\ RXWOLQHV WKH QHHG IRU LPSURYHPHQW LQ WKH OLYLQJ FRQGLWLRQV RI DW OHDVW PLOOLRQ VOXP GZHOOHUV ZLWKLQ D \HDU SHULRG ZKLFK LV GLUHFWO\ UHODWHG WR WKH UHDOL]DWLRQ RI WKH ULJKW WR DGHTXDWH KRXVLQJ JOREDOO\ 2QH IXQGDPHQWDO FRPSRQHQW LQ WKH UHDOL]DWLRQ RI WKH ULJKW WR DGHTXDWH KRXVLQJ LV SURPRWLQJ UHVLGHQWLDO VWDELOLW\ DQG VHFXULW\ RI WHQXUH DQG LQ WKLV UHODWLRQ WKH SUHYHQWLRQ RI IRUFHG DQG XQODZIXO HYLFWLRQV $FFHVV WR VHFXULW\ RI WHQXUH LV RQH WKH LQGLFDWRUV IRU *RYHUQPHQWV WR UHSRUW SURJUHVV RQ LPSOHPHQWLQJ WDUJHW WR WKH *HQHUDO $VVHPEO\
BBBBBBBBBBBB
7KH +DELWDW $JHQGD DQG WKH ,VWDQEXO 'HFODUDWLRQ RQ +XPDQ 6HWWOHPHQWV ERWK DGRSWHG E\ WKH VHFRQG 8QLWHG 1DWLRQV &RQIHUHQFH RQ +XPDQ 6HWWOHPHQWV +DELWDW ,, DW ,VWDQEXO 7XUNH\ RQ -XQH
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
%HVLGHV KRPHOHVVQHVV IRUFHG HYLFWLRQV KDYH EHHQ FODVVL¿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± QRUPDOO\ RI YHU\ SRRU QHLJKERXUKRRGV 7KHVH DUH JOREDO KLVWRULFDO IRUFHV WKDW KXPDQ ULJKWV DFWLYLVP LV QRW DEOH WR VWRS
1HWZRUNV RI RUJDQLVDWLRQV RI WKH XUEDQ SRRU KDYH UHFRJQLVHG WKDW WKHVH GHYHORSPHQW SODQV RIWHQ ELOOHG DV WHFKQLFDO SURMHFWV DUH LQ IDFW KLJKO\ SROLWLFDO GHFLVLRQV WKDW FDQ EH UHQHJRWLDWHG SURYLGHG WKDW DIIHFWHG FRPPXQLWLHV DUH DEOH WR HQJDJH VWDWH LQVWLWXWLRQV DQG GHPRQVWUDWH DOWHUQDWLYHV WKDW PDNH VHQVH IRU WKHP DV ZHOO DV RWKHU VWDNHKROGHUV ,Q WKLV QHZ VFHQDULR DIIHFWHG SHUVRQV DUH QRW PHUHO\ SDVVLYH VXEMHFWV ZKRVH ULJKW PXVW EH GHIHQGHG LQ FRXUWV RI ODZ QRU LV WKHLU SDUWLFLSDWLRQ UHVWULFWHG WR DIIHFWHG SHUVRQV ZKR VKRXOG KDYH DFFHVV WR UHOHYDQW LQIRUPDWLRQ DQG ZKR PHUHO\ VKRXOG EH LQYROYHG SDUWLFLSDWH LQ FRQVXOWDWLRQV WKURXJKRXW WKH SURFHVV 5DWKHU WKH\ VKRXOG EH FHQWUDO WR WKH SODQQLQJ WKDW ZLOO DIIHFW WKHLU OLYHV
7KHUH DUH DOUHDG\ HIIRUWV DW WKH JOREDO DQG QDWLRQDO OHYHOV VSHDUKHDGHG E\ )HGHUDWLRQV RI WKH 8UEDQ 3RRU WR FULWLFDOO\ HQJDJH 6WDWH *RYHUQPHQWV PXOWL ODWHUDOV DQG EL ODWHUDOV LQ RUGHU WR ¿QG ZLQ ZLQ VLWXDWLRQV WKDW SURYLGH VRXQG SUR SRRU GHYHORSPHQWDO DOWHUQDWLYHV WR HYLFWLRQV 7KLV FRPPLWPHQW WR WKH KDUG RSWLRQ WR QHJRWLDWH VROXWLRQV KDV DOUHDG\ \LHOGHG GHFLVLYH UHVXOWV LQ VWURQJ DV ZHOO DV ZHDN SUR SRRU DV ZHOO DV ³DQWL SRRU´ DGPLQLVWUDWLRQV
7KHUH DUH DOVR HIIRUWV DW WKH JOREDO DQG QDWLRQDO OHYHOV VSHDUKHDGHG E\ QRQ JRYHUQPHQWDO RUJDQLVDWLRQV WR PRQLWRU IRUFHG HYLFWLRQV ZLWK D YLHZ WR SUHYHQWLQJ VXFK LQFLGHQWV 7KH ¿UVW VHVVLRQ RI WKH :RUOG 8UEDQ )RUXP KHOG LQ 1DLUREL LQ 0D\ KDG H[WHQVLYH GLVFXVVLRQV RQ IRUFHG HYLFWLRQV DQG RQ WKH QHHG WR HVWDEOLVK ³D JURXS WR SURPRWH PHFKDQLVPV IRU OLQNLQJ V\VWHPV RI HYLFWLRQ PRQLWRULQJ WR QHWZRUNV RI LQVWLWXWLRQV
BBBBBBBBBBBB
6HH WKH 81 &RPPLWWHH RQ (FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV *HQHUDO &RPPHQWV QR DQG QR &RPPLVVLRQ RQ +XPDQ 5LJKWV UHVROXWLRQV DQG DQG 81 )DFW 6KHHW 1R )RUFHG HYLFWLRQV DQG KXPDQ ULJKWV 6HH DOVR WKH UHJXODU *OREDO 6XUYH\ UHSRUWV RQ IRUFHG (YLFWLRQV SURGXFHG E\ WKH &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( 7KHVH UHSRUWV FDQ EH GRZQORDGHG IURP ZZZ FRKUH RUJ ,QFOXGLQJ ZRPHQ FKLOGUHQ ROGHU SHUVRQV SHUVRQV ZLWK GLVDELOLWLHV LQGLJHQRXV SHRSOHV DQG RWKHU YXOQHUDEOH DQG GLVDGYDQWDJHG JURXSV 6XFK DV 6KDFN 'ZHOOHUV ,QWHUQDWLRQDO $I¿OLDWHV 16') 0XXQJDQR DQG X0IHODQGD:RQ\H 6HH ZZZ VGLQHW RUJ ZZZ VSDUFLQGLD RUJ DQG ZZZ GLDORJXH RUJ ]D 6XFK DV WKH &HQWUH RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( 6HH IRU H[DPSOH KWWS ZZZ FRKUH RUJ OEIUDPH KWP 5HSRUW RI WKH ¿UVW VHVVLRQ RI WKH :RUOG 8UEDQ )RUXP $QQH[ , KWWS ZZZ XQKDELWDW RUJ XI DL KWPO
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
LQGLYLGXDOV ZLWK H[SHULHQFH LQ SURPRWLQJ QHJRWLDWHG DOWHUQDWLYHV ´
7KH QHHG WR HVWDEOLVK VXFK D JURXS ± ZKLFK ZRXOG IXQFWLRQ DV D $GYLVRU\ RUJDQ WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 DQG DV D NH\ FRPSRQHQW RI WKH *OREDO &DPSDLJQ IRU 6HFXUH 7HQXUH ± HPHUJHG DV DQ XUJHQW SULRULW\ DQG D VWHS WR EH IDFLOLWDWHG E\ 81 +$%,7$7 $W WKH &RQVXOWDWLYH *URXS .RONDWD 0HHWLQJ RI WKH &LWLHV $OOLDQFH DQ LQLWLDO GLVFXVVLRQ ZDV KHOG RQ WKH LVVXH RI IRUFHG HYLFWLRQV DQG UHVHWWOHPHQW 7KH HVWDEOLVKPHQW RI WKLV $GYLVRU\ *URXS ZDV IXUWKHU HODERUDWHG DW D PHHWLQJ KHOG LQ /RQGRQ ZLWK WKH SDUWLFLSDWLRQ RI UHSUHVHQWDWLYHV IURP 6OXP 'ZHOOHUV ,QWHUQDWLRQDO &LWLHV $OOLDQFH 81 +$%,7$7 WHQXUH H[SHUWV DQG D QXPEHU RI UHOHYDQW 1*2V DQG HQGRUVHG E\ 81 +$%,7$7¶V *RYHUQLQJ &RXQFLO RQ 0D\
2EMHFWLYHV DQG DFWLYLWLHV
7KH SULPDU\ REMHFWLYH RI WKH $GYLVRU\ *URXS LV WR SUHYHQW IRUFHG HYLFWLRQV 7R DGGUHVV WKLV REMHFWLYH WKH $GYLVRU\ *URXS ZLOO SURPRWH DOWHUQDWLYHV WR IRUFHG HYLFWLRQV VXFK DV LQ VLWX XSJUDGLQJ QHJRWLDWHG UHVHWWOHPHQW DQG RWKHU DOWHUQDWLYH RSWLRQV :KHQ UHORFDWLRQ LV XQDYRLGDEOH WKH $GYLVRU\ *URXS ZLOO DJDLQ LGHQWLI\ DOWHUQDWLYH DFWLRQV VROXWLRQV WKDW ZLOO UHGXFH WKH QHJDWLYH HIIHFWV RI VXFK LQFLGHQWV
,Q RUGHU WR DFKLHYH LWV REMHFWLYH WKH $GYLVRU\ *URXS ZLOO DGYLVH DQG DVVLVW 81 +$%,7$7 WR XQGHUWDNH DFWLYLWLHV VXFK DV LQWHU DOLD D (QDEOLQJ SURFHVVHV RI OHDUQLQJ LQ UHJDUG WR DOWHUQDWLYHV WR HYLFWLRQV E\ H[SRVLQJ DIIHFWHG FRPPXQLWLHV JRYHUQPHQW RI¿FLDOV DQG SURIHVVLRQDOV WR FDVHV LQ ZKLFK GHDOV KDYH EHHQ EURNHUHG WR SUHYHQW HYLFWLRQV WKURXJK SHRSOH SXEOLF SULYDWH SDUWQHUVKLSV OHDGLQJ WR VXVWDLQDEOH SUR SRRU GHYHORSPHQW E 0DNLQJ VXEPLVVLRQV DQG SUHVHQWDWLRQV LQ FRQQHFWLRQ ZLWK SODQQHG HYLFWLRQV LQ RUGHU WR SURPRWH DOWHUQDWLYH DSSURDFKHV F )DFLOLWDWLQJ GLDORJXH EHWZHHQ WKH VWDNHKROGHUV RI FXUUHQW RU SODQQHG FDVHV RI HYLFWLRQV ZLWK D YLHZ RI VHDUFKLQJ QHJRWLDWHG DOWHUQDWLYHV G (QFRXUDJLQJ JRYHUQPHQWV DQG LQVWLWXWLRQV WR GHYHORS SURDFWLYH SURJUDPPHV VXFK DV ODQG WHQXUH UHIRUP WR KHOS LQ UHGXFLQJ WKH RFFXUUHQFH RI ODUJH VFDOH IRUFHG HYLFWLRQV H 0RQLWRULQJ DFWV RI IRUFHG HYLFWLRQV DQG IDFLOLWDWLQJ LQIRUPDWLRQ DQG H[SHULHQFH H[FKDQJH EHWZHHQ WKH VWDNHKROGHUV RI VXFK LQFLGHQWV LQFOXGLQJ SUHVV DQG PHGLD SURIHVVLRQDO DVVRFLDWLRQV I 3URYLGLQJ DGYLVRU\ VHUYLFHV WR VWDNHKROGHUV J $OHUWLQJ WKH LQWHUQDWLRQDO FRPPXQLW\ DQG DOO RWKHU VWDNHKROGHUV LQFOXGLQJ UHOHYDQW 8QLWHG 1DWLRQV WUHDW\ ERGLHV RQ SRWHQWLDO DQG FXUUHQW IRUFHG HYLFWLRQV DQG WKH HIIHFWV RI VXFK LQFLGHQWV K )DFLOLWDWLQJ SURYLVLRQ RI OHJDO DQG RWKHU DVVLVWDQFH WR VWDNHKROGHUV SDUWLFXODUO\ WR YLFWLPV RI IRUFHG HYLFWLRQV
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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
0DQGDWH RI WKH $GYLVRU\ *URXS
7KH $GYLVRU\ *URXS GHULYHV LWV PDQGDWH IURP D YDULHW\ RI VRXUFHV LQFOXGLQJ *RYHUQPHQW¶V FRPPLWPHQWV LQ WKH +DELWDW $JHQGD 3DUD Q
DQG WKH :RUOG 8UEDQ )RUXP DV DQ $GYLVRU\ RUJDQ WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 ± DV WKH :RUOG 8UEDQ )RUXP XUJHG ³WKH 8QLWHG 1DWLRQV 6\VWHP WR XWLOLVH WKLV JURXS DQG RU RWKHU PHFKDQLVPV WR WDNH D SRVLWLRQ RQ KRZ LW ZLOO PRQLWRU DQG UHVSRQG WR XQODZIXO HYLFWLRQV ´ 0RUH UHFHQWO\ WKH WK *RYHUQLQJ &RXQFLO RI 81 +$%,7$7 KDV DGRSWHG D UHVROXWLRQ LQ ZKLFK LW ³5HTXHVWV WKH ([HFXWLYH 'LUHFWRU LQ OLQH ZLWK WKH UHFRPPHQGDWLRQV RI WKH :RUOG 8UEDQ )RUXP DW LWV ¿UVW VHVVLRQ WR HVWDEOLVK DQ DGYLVRU\ JURXS WR PRQLWRU DQG LGHQWLI\ DQG LI VR UHTXHVWHG WR SURPRWH DOWHUQDWLYHV WR XQODZIXO HYLFWLRQV´
:LWK D YLHZ WR IDFLOLWDWH GLVFXVVLRQ RI ELDQQXDO UHSRUWV DW WKH :RUOG 8UEDQ )RUXP LW LV UHFRPPHQGHG WKDW ELDQQXDO UHSRUWV DUH VXEPLWWHG WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 E\ WKH &RQYHQRU RI WKH $GYLVRU\ *URXS QRW OHVV WKDQ WKUHH PRQWKV SULRU WR HDFK VHVVLRQ RI WKH :RUOG 8UEDQ )RUXP $GGLWLRQDO DG KRF UHSRUWV PD\ EH VXEPLWWHG DW DQ\ WLPH DV DSSURSULDWH
7KH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 ZLOO GHFLGH RQ WKH FRXUVH RI DFWLRQ DQG IROORZ XS RQ WKHVH UHSRUWV E\ 81 +$%,7$7
&RPSRVLWLRQ DQG HVWDEOLVKPHQW RI WKH $GYLVRU\ *URXS
7KH $GYLVRU\ *URXS RQ IRUFHG HYLFWLRQV ZLOO FRPSULVH RI SHUVRQV DSSRLQWHG E\ WKH ([HFXWLYH 'LUHFWRU 7KH $GYLVRU\ *URXS ZLOO EH DVVLVWHG E\ D QHWZRUN RI SHUVRQV KHUHLQDIWHU UHIHUUHG WR DV WKH ³QHWZRUN´ UHSUHVHQWDWLYHV IURP RUJDQLVDWLRQV LQ WKH ¿HOGV RI KXPDQ VHWWOHPHQWV ODZ WHQXUH SROLF\ DQG KXPDQ ULJKWV LQFOXGLQJ FLYLO VRFLHW\ ZKR FDQ EH RI DFFHVV WR WKH $GYLVRU\ *URXS 7KH RSHUDWLRQV RI WKH $GYLVRU\ *URXS ZLOO EH BBBBBBBBBBBB
5HSRUW RI WKH ¿UVW VHVVLRQ RI WKH :RUOG 8UEDQ )RUXP $QQH[ , KWWS ZZZ XQKDELWDW RUJ XI DL KWPO 81 +$%,7$7 *RYHUQLQJ &RXQFLO 5HVROXWLRQ DUWLFOH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
IDFLOLWDWHG E\ D 6HFUHWDULDW 7KH $GYLVRU\ *URXS ZLOO FRQVLVW RI DERXW LQGLYLGXDOV DSSRLQWHG E\ WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 ZLWK D YLHZ RI HQVXULQJ UHJLRQDO LQVWLWXWLRQDO DQG JHQGHU EDODQFH 7KH DFWLYLWLHV RI WKH $GYLVRU\ *URXS DUH GHWDLOHG LQ SDUDJUDSK DERYH 7KH 1HWZRUN LQ RUGHU WR FDUU\ RXW VZLIWO\ DQG HI¿FLHQWO\ LWV DFWLYLWLHV WKH $GYLVRU\ JURXS ZLOO EH VXSSRUWHG E\ D QXPEHU RI H[SHULHQFHG UHSUHVHQWDWLYHV IURP RUJDQLVDWLRQV LQ WKH ¿HOGV RI KXPDQ VHWWOHPHQWV ODZ WHQXUH SROLF\ DQG KXPDQ ULJKWV LQFOXGLQJ FLYLO VRFLHW\ 7KLV QHWZRUN RI UHVRXUFH SHUVRQV ZLOO EH LGHQWL¿HG DQG FDOOHG XSRQ E\ WKH $GYLVRU\ *URXS WR XQGHUWDNH RQ DQ DG KRF EDVLV DFWLYLWLHV RQ EHKDOI RI DQG XSRQ UHTXHVW IURP WKH $GYLVRU\ *URXS VXFK DV (QJDJLQJ LQ IDFW ¿QGLQJ PLVVLRQV ZKHQ FDVHV RI IRUFHG HYLFWLRQ DUH UHSRUWHG (QJDJLQJ LQ SUHOLPLQDU\ GLVFXVVLRQV ZLWK UHOHYDQW VWDNHKROGHUV ZKHQ UHTXHVWHG WR SURPRWH DOWHUQDWLYHV WR XQODZIXO HYLFWLRQV 0RQLWRULQJ JOREDOO\ DQG SUHSDULQJ SHULRGLF UHSRUWV RQ IRUFHG HYLFWLRQ &RQGXFWLQJ UHVHDUFK WUDLQLQJ DQG FDSDFLW\ EXLOGLQJ DFWLYLWLHV LQ UHODWLRQ WR WKH PDQGDWH RI WKH $GYLVRU\ *URXS $WWHQG ZKHQ UHOHYDQW PHHWLQJV RI WKH $GYLVRU\ *URXS
7KH 1HWZRUN PD\ LQFOXGH SDUWLFLSDQWV IURP D *OREDO 5HJLRQDO RUJDQLVDWLRQV RI VOXP GZHOOHUV *OREDO 1*2V E /RFDO DXWKRULWLHV WKHLU JOREDO DVVRFLDWLRQV F 5HVHDUFK LQVWLWXWLRQV DFDGHPLF VRFLHW\ H[SHUWV HWF
7KH $GYLVRU\ *URXS LQ FRQVXOWDWLRQ ZLWK WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 ZLOO GHVLJQDWH PHPEHUV RI WKH 1HWZRUN
7KH 6HFUHWDULDW LW ZLOO IDFLOLWDWH RSHUDWLRQV RI WKH $GYLVRU\ *URXS 7KH VHFUHWDULDW ZLOO RUJDQL]H WKH DFWLYLWLHV RI WKH $GYLVRU\ *URXS DQG HQVXUH D GD\ WR GD\ IROORZ XS RI LWV DFWLRQV FRPPLWPHQWV DQG UHSRUWLQJ 7KLV ZLOO LQFOXGH SUHSDULQJ D FDOHQGDU VFKHGXOH RI WKH DFWLYLWLHV RI WKH $GYLVRU\ *URXS RUJDQLVLQJ WKH PHHWLQJV RI WKH $GYLVRU\ *URXS DQG RU WKH DFWLYLWLHV RI WKH SRRO LQFOXGLQJ SUHSDULQJ EDFNJURXQG GRFXPHQWDWLRQ RUJDQLVLQJ WKH ORJLVWLFV WUDYHO DUUDQJHPHQWV SURSRVLQJ PHHWLQJ YHQXHV HWF
SUHSDULQJ DQG SXEOLVKLQJ SHULRGLF RU DG KRF UHSRUWV HWF
7KLV IXQFWLRQ ZLOO EH XQGHUWDNHQ E\ WKH 6HFUHWDULDW RI WKH 81 +$%,7$7 *OREDO &DPSDLJQ IRU 6HFXUH 7HQXUH LQ 1DLUREL ,W FRXOG EH DVVLVWHG LQ WKLV IXQFWLRQ E\ DQ H[WHUQDO LQVWLWXWLRQ WKDW LV UHOHYDQW WR WKH REMHFWLYHV DQG PDQGDWH RI WKH $GYLVRU\ *URXS BBBBBBBBBBBB
$VVLVWHG E\ 6HFUHWDULDW RI WKH 8QLWHG 1DWLRQV +RXVLQJ 5LJKWV 3URJUDPPH
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
7KH PHPEHUV RI WKH $GYLVRU\ *URXS ZLOO HOHFW DPRQJ WKHPVHOYHV D &RQYHQRU ZKR ZLOO FR RUGLQDWH WKH DFWLYLWLHV RI WKH $GYLVRU\ *URXS DQG ZKR ZLOO EH UHVSRQVLEOH IRU UHSRUWLQJ WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7 $OO PHPEHUV RI WKH $GYLVRU\ *URXS LQFOXGLQJ WKH &RQYHQRU ZLOO VHUYH IRU D WHUP RI WZR \HDUV
$ VHUYLQJ PHPEHU RI WKH $GYLVRU\ *URXS PD\ EH UH QRPLQDWHG WR DGGLWLRQDO WHUPV VXEMHFW WR WKH DSSURYDO E\ WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
2SHUDWLRQDO DUUDQJHPHQWV
7KH $GYLVRU\ *URXS ZLOO VHW WKH SULRULWLHV DQG SODQ RI DFWLRQ RI WKLV LQLWLDWLYH EDVHG RQ LQIRUPDWLRQ UHFHLYHG E\ VWDNHKROGHUV LQYROYHG LQ VSHFL¿F FDVHV RI IRUFHG HYLFWLRQV DV ZHOO DV IURP RWKHU VWDNHKROGHUV UHODWHG WR IRUFHG HYLFWLRQV LQFOXGLQJ PHPEHUV RI WKH 1HWZRUN DQG 81 +$%,7$7
7KH $GYLVRU\ *URXS ZLOO SUHIHUDEO\ PDNH LWV GHFLVLRQV EDVHG RQ FRQVHQVXV ,I FRQVHQVXV FDQQRW EH UHDFKHG RQ VSHFL¿F LVVXHV GHFLVLRQV ZLOO UHTXLUH WKH FRQVHQW RI WKH PDMRULW\ RI $GYLVRU\ *URXS PHPEHUV $Q\ VXFK ODFN RI FRQVHQVXV LQ GHFLVLRQ PDNLQJ VKRXOG EH LQGLFDWHG LQ WKH UHSRUWLQJ WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
7KH PHPEHUV RI WKH $GYLVRU\ *URXS DQG 6HFUHWDULDW PHPEHUV ZLOO FRPPXQLFDWH SULPDULO\ WKURXJK H PDLO WHOHSKRQH DQG RWKHU HOHFWURQLF PHDQV
%LHQQLDO DQG RFFDVLRQDO PHHWLQJV RI WKH $GYLVRU\ *URXS ZLOO EH RUJDQL]HG VXEMHFW WR DYDLODELOLW\ RI IXQGV %LHQQLDO PHHWLQJV VKDOO SUHIHUDEO\ EH KHOG LQ FRQMXQFWLRQ ZLWK VHVVLRQV RI WKH *RYHUQLQJ &RXQFLO RI 81 +$%,7$7 RU WKH :RUOG 8UEDQ )RUXP
7KH $GYLVRU\ *URXS PD\ GHFLGH WR HVWDEOLVK DG KRF FRPPLWWHHV IRU VSHFL¿F WDVNV DQG LQLWLDWLYHV DQG PD\ UHTXHVW WKH LQYROYHPHQW RI UHOHYDQW LQVWLWXWLRQV DQG LQGLYLGXDOV KDYLQJ H[SHUWLVH DQG H[SHULHQFH IRU VXFK SXUSRVHV 6HSDUDWH DG KRF FRPPLWWHHV PD\ IRU LQVWDQFH EH HVWDEOLVKHG WR ¿QG SUDFWLFDO VROXWLRQV DQG QHJRWLDWH DOWHUQDWLYHV WR VSHFL¿F SODQQHG IRUFHG HYLFWLRQV
$V RQH RI LWV ¿UVW WDVNV WKH $GYLVRU\ *URXS ZLOO LGHQWLI\ DQG HVWDEOLVK D ZLGHU QHWZRUN RI UHVRXUFHV XSRQ ZKLFK LW ZLOO EH DEOH WR FDOO IRU DVVLVWDQFH DQG H[SHUW LQSXW
7KH $GYLVRU\ *URXS PD\ DOVR RUJDQL]H WKURXJK WKH 6HFUHWDULDW FRQWUDFWV IRU RUJDQL]DWLRQV RU LQGLYLGXDOV IRU SURIHVVLRQDO VHUYLFHV DJDLQ VXEMHFW WR DYDLODELOLW\ RI IXQGV
)XQGLQJ
3DUWLFLSDWLRQ LQ WKH $GYLVRU\ *URXS DQG LWV RSHUDWLRQV LV YROXQWDU\ +RZHYHU WKH FRVW RI WUDYHO DQG SHU GLHP RI WKH PHPEHUV RI WKH $GYLVRU\ JURXS ZKHQ WKH\ DUH UHTXHVWHG WR GR VR ZLOO EH UHLPEXUVHG DFFRUGLQJ WR WKH 81 UXOHV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$ FRUH IXQGLQJ IRU WKLV LQLWLDWLYH LV WR EH HVWDEOLVKHG E\ 81 +$%,7$7 3RWHQWLDO VRXUFHV RI VXFK IXQGLQJ DUH WKH &LWLHV $OOLDQFH 81 +$%,7$7 2+&+5 GRQRU JRYHUQPHQWV DQG RUJDQLVDWLRQV 7KH 81 +$%,7$7 ([HFXWLYH 'LUHFWRU ZLOO LQLWLDWH IXQGUDLVLQJ DFWLYLWLHV IRU WKLV SXUSRVH
'HFLVLRQV RQ XVH RI DOORFDWHG IXQGV VKDOO EH PDGH E\ WKH $GYLVRU\ *URXS LQ FRQVXOWDWLRQ ZLWK 81 +$%,7$7 DQG VXEMHFW WR 8QLWHG 1DWLRQV UXOHV DQG UHJXODWLRQV DQG ZLOO EH GLVEXUVHG WKURXJK WKH 6HFUHWDULDW RI WKH $GYLVRU\ *URXS
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$11(; $*)( (9,&7,216 '$7$ &2//(&7,21 )250$7 $ 7KUHDW RI (YLFWLRQ 1DPH DQG ORFDWLRQ RI FRPPXQLW\ WKUHDWHQHG ZLWK HYLFWLRQ 5HDVRQV JLYHQ IRU WKH HYLFWLRQ RI¿FLDO DQG RWKHU
(VWLPDWHG QXPEHU RI IDPLOLHV DIIHFWHG %DFNJURXQG DQG KLVWRU\ WR WKH FDVH 7KH PDLQ HYHQWV WKDW KDYH WDNHQ SODFH VR IDU ZLWK GDWHV
/HYHO RI RUJDQLVDWLRQ RI WKH DIIHFWHG FRPPXQLW\ LQFOXGLQJ QDPHV RI RUJDQLVDWLRQV WKHLU DSSURDFK VWUHQJWKV DQG ZHDNQHVVHV
1DPHV RI VXSSRUWLQJ DJHQFLHV ZRUNLQJ LQ DOOLDQFH ZLWK WKH DIIHFWHG FRPPXQLW\ 1DPHV RI DXWKRULWLHV LPSOHPHQWLQJ WKH HYLFWLRQ &RQVXOWDWLRQV KHOG DQG DOWHUQDWLYH KRXVLQJ DQG RU FRPSHQVDWLRQ RIIHUHG E\ WKH DXWKRULWLHV WR WKH DIIHFWHG FRPPXQLW\ LI DQ\
$FWLRQV WDNHQ VR IDU E\ WKH FRPPXQLW\ DQG RU VXSSRUWLQJ DJHQFLHV WR UHVLVW WKH HYLFWLRQ DQG RU WR GHYHORS FUHDWLYH DOWHUQDWLYH VROXWLRQV 6WUDWHJLHV IRU IXWXUH DFWLRQ GLVFXVVHG GHYHORSHG SURSRVHG WR GHDO ZLWK WKH WKUHDWHQHG HYLFWLRQ ,PSRUWDQW HYHQWV DQWLFLSDWHG H J GDWHV VHW IRU HYLFWLRQ SODQQHG DFWLRQV FRXUW FDVHV GHYHORSPHQW RI DOWHUQDWLYHV HWF
5HDVRQV ZK\ WKLV LV D JRRG IRFXV FDVH IRU WKH $GYLVRU\ *URXS ,GHDV RQ ZKDW WKH $GYLVRU\ *URXS FRXOG GR WR FRQWULEXWH WR WKH VXFFHVVIXO UHVROXWLRQ RI WKH FDVH % 6XFFHVV 6WRULHV (YLFWLRQ $YHUWHG 1DPH DQG ORFDWLRQ RI FRPPXQLW\ WKDW ZDV WKUHDWHQHG ZLWK HYLFWLRQ 5HDVRQV JLYHQ IRU LQLWLDO WKUHDW RI HYLFWLRQ RI¿FLDO DQG RWKHU
(VWLPDWHG QXPEHU RI IDPLOLHV DIIHFWHG 1DPHV RI WKH DXWKRULWLHV DQG RU DJHQFLHV HQJDJHG LQ HQDEOLQJ WKH DOWHUQDWLYH %DFNJURXQG DQG KLVWRU\ WR WKH FDVH 7KH PDLQ HYHQWV RI WKH FDVH ZLWK GDWHV
/HYHO RI RUJDQLVDWLRQ RI WKH DIIHFWHG FRPPXQLW\ LQFOXGLQJ QDPHV RI RUJDQLVDWLRQV WKHLU DSSURDFK VWUHQJWKV DQG ZHDNQHVVHV
1DPH RI FRPPXQLW\ RUJDQLVDWLRQ V LQYROYHG LQ EURNHULQJ WKH VROXWLRQ 1DPHV RI VXSSRUWLQJ DJHQFLHV ZRUNLQJ LQ DOOLDQFH ZLWK WKH DIIHFWHG FRPPXQLW\ 1DPH RI DXWKRULWLHV HQJDJHG LQ HQDEOLQJ WKH DOWHUQDWLYH 5HDVRQV ZK\ WKLV LV D JRRG IRFXV FDVH IRU WKH $GYLVRU\ *URXS 3RWHQWLDO IRU WKH FDVH WR EH XVHG DV D FHQWUH IRU OHDUQLQJ DQG DGYRFDF\ WKURXJK H[SRVXUH DQG H[FKDQJH
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; /(77(5 2) ,19,7$7,21 72 $*)( )520 *29(510(17 2) *+$1$
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$11(; /(77(5 2) ,19,7$7,21 72 $*)( )520 081,&,3$/,7< 2) %2&$ &+,&$
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; /(77(5 2) ,19,7$7,21 72 $*)( )520 7+( 0,1,675< 2) 7+( &,7,(6 *29(510(17 2) %5$=,/
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
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i +DELWDWLRQ &RPSDQ\ &2+$3$5 WKH 1DWLRQDO 5HSRUW RQ WKH +XPDQ 5LJKW WR $GHTXDWH +RXVLQJ WKH &HQWHU RQ +RXVLQJ 5LJKWV DQG (YLFWLRQV &2+5( WKH 3DUDQi 2EVHUYDWRU\ RQ 3XEOLF 3ROLFLHV WKH /DQG RI 5LJKWV WKH 1DWLRQDO )LJKW IRU +RXVLQJ 0RYHPHQW WKH &HQWHU IRU 3RSXODU 0RYHPHQWV WKH 0XQLFLSDO &KDPEHU 8UEDQL]DWLRQ &RPPLVVLRQ DQG WKH 3DUDQi )HGHUDO 8QLYHUVWL\ KDYH DOO DJUHHG WR WKH SUHVHQW WHUPV &RQVLGHULQJ WKH PDQGDWH RI WKH 81 +$%,7$7 $GYLVRU\ *URXS RQ )RUFHG (YLFWLQV WKH REMHFWLYH RI ZKLFK LV WR IDFLOLWDWH WKH HVWDEOLVKPHQW RI FRPPXQLFDWLRQ DPRQJ WKH GLYHUVH JURXSV LQYROYHG LQ SODQQHG RU RFFXUUHG HYLFWLRQV LQ RUGHU WR UHDFK DQ DOWHUQDWLYH DJUHHPHQW ZLWK WKH DLP RI IXO¿OOLQJ WKH WK 0LOOHQQLXP 'HYHORSPHQW *RDO WKDW LV WR LPSURYH WKH OLYLQJ FRQGLWLRQV RI PLOOLRQ UHVLGHQWV RI SUHFDULRXV VHWWOHPHQWV ZLWKLQ \HDUV &RQVLGHULQJ WKDW EHVLGHV WKH ODFN RI KRXVLQJ WKH SUDFWLFH RI IRUFHG HYLFWLRQ KDV EHHQ FODVVL¿HG DV VHULRXV YLRODWLRQ RI KXPDQ ULJKWV E\ LQWHUQDWLRQDO KXPDQ ULJKWV WUHDWLHV &RQVLGHULQJ WKDW WKH FLYLO VRFLHW\ DQG VRFLDO PRYHPHQW UHSRUWV VHQW WR WKH $*)( RQ ERWK SODQQHG DQG DOUHDG\ LPSOHPHQWHG IRUFHG HYLFWLRQV LQ &XULWLED IURP WR 9LOD GR 0HO &RQWHQGD 9LOD /HRQLFH 9LOD 6mR %UD] 6DPEDTXL %ROVmR 6DEDUi -DUGLP (VSHUDQoD 9LOD 3OXPD &DLXi 3HGUR 0DFKDGR 9LWyULD &DPSR 0DJUR KDYH UHVXOWHG LQ WKH GHFLVLRQ WR XQGHUWDNH D FRQFLOLDWLRQ PLVVLRQ WR 0XQLFLSDOLW\ ZLWK WKH JRDO RI LPSOHPHQWLQJ DOWHUQDWLYHV WR SHQGLQJ HYLFWLRQV DQG KRXVLQJ SURJUDPV RI VRFLDO LQWHUHVW &RQVLGHULQJ WKDW WKH %UD]LOLDQ &RQVWLWXWLRQ WKH &LW\ 6WDWXWH DQG WKH )HGHUDO /DZV RQ 8UEDQ 'HYHORSPHQW JXDUDQWHH WKH ULJKW WR WKH FLW\ DQG DGHTXDWH KRXVLQJ WKURXJK WKH SURPRWLRQ RI HFRQRPLF VRFLDO FXOWXUDO DQG HQYLURQPHQWDO SXEOLF SROLFLHV DQG WKH IXO¿OPHQW RI WKH VRFLDO IXQFWLRQ RI SURSHUW\ &RQVLGHULQJ WKDW WKH 0DVWHU 3ODQ RI WKH 0XQLFLSDOLW\ RI &XULWLED FDOOV IRU WKH HVWDEOLVKPHQW RI VSHFLDO QRUPV IRU XUEDQL]DWLRQ WKH XVDJH DQG RFFXSDWLRQ RI WKH ODQG DQG EXLOGLQJV IRU VHWWOHPHQWV RI VRFLDO LQWHUHVW ODQG RZQHUVKLS UHJXODUL]DWLRQ DQG WKH XUEDQL]DWLRQ RI DUHDV BBBBBBBBBBBB
$V LQGLFDWHG LQ WKLV UHSRUW WKLV GUDIW DJUHHPHQW ZDV QRW LQ IDFW VLJQHG E\ WKH &LW\ +DOO RU WKH 6WDWH *RYHUQPHQW GXULQJ WKH $*)( PLVVLRQ WR &XULWLED )XUWKHU ZRUN LV KRZHYHU EHLQJ GRQH E\ D VSHFLDO ZRUNLQJ JURXS FRPSRVHG RI YDULHW\ RI VWDNHKROGHUV WR SURSRVH PHDVXUHV WR SUHYHQW IRUFHG HYLFWLRQV DQG WR SURPRWH VROXWLRQV
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
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
, ±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µXVRFDSLXP¶ WKH ULJKW RI SUH HPSWLRQ VXUIDFH ULJKWV VSHFLDO ]RQHV RI VRFLDO LQWHUHVW HYDOXDWLRQ DQG FKDUDFWHUL]DWLRQ RI HPSW\ XUEDQ DUHDV GHPRFUDWLF JURZWK HVSHFLDOO\ WKH FRQVWLWXWLRQ RI WKH &ROOHJLDWH %RG\ PHQWLRQHG LQ DUWLFOH RI WKH 0DVWHU 3ODQ WR EH HOHFWHG LQ WKH QH[W 0XQLFLSDOLW\ RI &XULWLED &LW\ &RQIHUHQFH UHVSHFWLQJ WKH SURSRUWLRQ RI LQWHJUDQWV LQ DJUHHPHQW ZLWK WKH 1DWLRQDO &LW\ &RXQFLO ,QGLFDWH OHJDO DQG DGPLQLVWUDWLYH PHDVXUHV DLPLQJ DW KDOWLQJ WKH DFWLYLWLHV RI
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
LUUHJXODU DQG FODQGHVWLQH EURNHUV DQG LQ WKH VHDUFK RI VROXWLRQV WR WKH ODQG RZQHUVKLS UHJXODUL]DWLRQ DQG WKH SURWHFWLRQ RI ORZ LQFRPH SXUFKDVHUV &RQWULEXWH WR WKH SURFHVV RI WKH &LW\ &RQIHUHQFH WKDW ZLOO EH LPSOHPHQWHG E\ WKH 0LQLVWU\ RI WKH &LWLHV LQ 7KH 3DUWLHV ZLOO LQGLFDWH LQ ¿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
,, ± $5($6 2) &223(5$7,21 7KH 3DUWLHV VKDOO LQ SULYDWH GHYHORS RSSRUWXQLWLHV IRU FRRSHUDWLRQ LQ WKH IROORZLQJ DFWLYLW\ DUHDV 7HFKQLFDO FRRSHUDWLRQ ([FKDQJH RI JRRG SUDFWLFHV DQG LQWHUQDWLRQDO VROLGDULW\ 3ROLFLHV DQG WRROV RQ KRXVLQJ RI VRFLDO LQWHUHVW SUHYHQWLRQ DQG UHPHGLDWLRQ RI IRUFHG HYLFWLRQV x 'HPRFUDWLF DQG SDUWLFLSDWRU\ PDQDJHPHQW x 3URPRWLRQ DQG LPSOHPHQWDWLRQ RI WKH 5LJKW WR WKH &LW\ x x x
7KH 3DUWLHV VKDOO VHHN WR H[FKDQJH LQIRUPDWLRQ DQG FRQVXOWDWLRQ ZLWK WKH DLP RI LGHQWLI\LQJ DGGLWLRQDO DUHDV RI HIIHFWLYH FRRSHUDWLRQ EHWZHHQ WKH 3DUWLHV WKDW VLJQ WKLV $JUHHPHQW
,,, ± 3(5,2' $1' (;3,5$7,21 7KLV $JUHHPHQW VKDOO EH LQ IRUFH IURP WKH GDWH RI LWV VLJQDWXUH IRU IRU D SHULRG RI PRQWKV ZLWK WKH SRVVLELOLW\ RI EHLQJ H[WHQGHG E\ PXWXDO DJUHHPHQW EHWZHHQ WKH 3DUWLHV &XULWLED )HEUXDU\
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; /(77(5 2) ,19,7$7,21 72 $*)( )520 7+( &20081( ', 520$
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
$11(; (;$03/( 2) 35(66 &29(5$*( 2) $*)( 0,66,21 72 520(
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; '(&5(( %< 7+( 0$<25 2) %2%,*1< 21 7+( (9,&7,21 2) 7(1$176 0DUFK
(YLFWLRQ RI 7HQDQWV &RQVLGHULQJ WKH 3UHDPEOH RI WKH &RQVWLWXWLRQ ZKLFK SURYLGHV ³7KH 1DWLRQ JXDUDQWHHV WR WKH LQGLYLGXDO DQG WKH IDPLO\ WKH FRQGLWLRQV QHFHVVDU\ IRU WKHLU IXO¿OPHQW (YHU\ KXPDQ EHLQJ ZKR LV XQDEOH WR ZRUN EHFDXVH RI HFRQRPLF FRQGLWLRQV LV HQWLWOHG WR EH SURYLGHG E\ WKH FRPPXQLW\ ZLWK VXLWDEOH PHDQV RI H[LVWHQFH´ &RQVLGHULQJ WKH SULQFLSOH RI SUHVHUYDWLRQ RI WKH GLJQLW\ RI WKH KXPDQ SHUVRQ HVWDEOLVKHG E\ WKH &RQVWLWXWLRQDO &RXQFLO LQ LWV MXGJPHQWV GHOLYHUHG RQ -XO\ DQG -XO\ &RQVLGHULQJ WKH &RQVWLWXWLRQDO &RXQFLO¶V MXGJPHQW 1R GHOLYHUHG RQ 0D\ ³5LJKW WR KRXVLQJ´ KROGLQJ WKDW ³WKH ULJKW RI XQGHUSULYLOHJHG SHUVRQV WR KRXVLQJ´ LV UHVSRQVLYH WR ³D UHTXLUHPHQW RI QDWLRQDO LQWHUHVW´ &RQVLGHULQJ WKH &RQVWLWXWLRQDO &RXQFLO¶V MXGJPHQW 1R GHOLYHUHG RQ -DQXDU\ ³'LYHUVLW\ RI KRXVLQJ´ UHFRJQL]LQJ ³HYHU\RQH¶V DFFHVV WR GHFHQW KRXVLQJ´ DV D FRQVWLWXWLRQDO REMHFWLYH &RQVLGHULQJ WKH 8QLWHG 1DWLRQV &KLOGUHQ¶V 5LJKWV &RQYHQWLRQ RI -DQXDU\ UDWL¿HG E\ )UDQFH RQ -XO\ &RQVLGHULQJ JXLGHOLQH $FW RI -XO\ UHODWLYH WR GHWHUUHQFH RI H[FOXVLRQV SURYLGLQJ WKDW ³GHWHUUHQFH RI H[FOXVLRQV LV D QDWLRQDO LPSHUDWLYH EDVHG RQ WKH UHVSHFW IRU DOO KXPDQ EHLQJV DQG LV D SULRULW\ RI DOO RI WKH 1DWLRQ¶V SXEOLF SROLFLHV´ ³7KH 6WDWH WKH UHJLRQDO DXWKRULWLHV SDUWLFLSDWH LQ WKH LPSOHPHQWDWLRQ RI WKRVH SULQFLSOHV´ &RQVLGHULQJ WKH ¿UVW VHFWLRQ RI WKH (QYLURQPHQWDO &KDUWHU GDWHG 0DUFK &RQVLGHULQJ WKH 'HSDUWPHQWDO 3ODQ IRU +RXVLQJ RI XQGHUSULYLOHJHG SHUVRQV DQG WKH 6RFLDO 6XSSRUW &KDUWHU VLJQHG E\ WKH 3UHIHFW RI 6HLQH 6DLQW 'HQLV &RQVLGHULQJ WKH %RUORR SODQ GDWHG 0D\ RI ZKLFK DOO RI WKH 'HSDUWPHQWDO 3UHIHFWV ZHUH DGYLVHG E\ &LUFXODU 1R 8+& '+ ZKLFK SURKLELWV HYLFWLRQV RI WHQDQWV LQLWLDWHG RU SODQQHG DJDLQVW SHUVRQV LQ GLI¿FXOW\ DQG JRRG IDLWK ZKHUHE\ WKH 0LQLVWHU RI (PSOR\PHQW /DERU DQG 6RFLDO &RKHVLRQ H[SUHVVO\ DGYLVHG WKH SUHIHFWV WKDW KH UHOLHG RQ
BBBBBBBBBBBB
7UDQVODWHG IURP WKH )UHQFK RULJLQDO
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
WKHLU ³SHUVRQDO FRPPLWPHQW LQGLVSHQVDEOH IRU WKH VXFFHVV RI WKDW H[FHSWLRQDO V\VWHP´ &RQVLGHULQJ Â&#x2020;Â&#x2020; DQG RI 6RFLDO &RKHVLRQ 3URJUDPPLQJ $FW RI -DQXDU\ &RQVLGHULQJ Â&#x2020;Â&#x2020;/ II RI WKH *HQHUDO 5HJLRQDO $XWKRULWLHV &RGH &RQVLGHULQJ WKH IDFW WKDW HYLFWLRQV RI WHQDQWV IRU GHIDXOW LQ SD\PHQW RI UHQW RU PDLQWHQDQFH FKDUJHV DUH XQZRUWK\ RI D PRGHUQ VRFLHW\ DQG D VHULRXV LPSDLUPHQW RI KXPDQ GLJQLW\ &RQVLGHULQJ WKH IDFW WKDW WKH\ DUH SDUWLFXODUO\ XQMXVW DQG OLDEOH WR FDXVH VHULRXV GLI¿FXOW\ IRU HYLFWHG LQGLYLGXDOV RU IDPLOLHV &RQVLGHULQJ WKH IDFW WKDW ORVV RI KLV RU LWV KRXVLQJ GHSULYHV WKH LQGLYLGXDO RU WKH IDPLO\ RI D SODFH RI UHVLGHQFH WKDW WKH ODFN RI DQ DGGUHVV H[FOXGHV WKHP IURP DOO DGPLQLVWUDWLYH VWDQGLQJ HQWDLOLQJ WKH ORVV RI WKHLU ULJKWV VLQFH WKH\ DUH XQDEOH WR IXO¿O WKHPVHOYHV RFFXSDWLRQDOO\ RU IDPLO\ ZLVH &RQVLGHULQJ WKH IDFW WKDW HYLFWLRQV DUH LQKXPDQH XQMXVW DQG LPSHUPLVVLEOH DQG PDNH QR DOORZDQFH IRU WKH GLI¿FXOWLHV ZLWK ZKLFK HYLFWHHV DUH IDFHG GLVFKDUJH IDPLO\ GLI¿FXOWLHV RYHU LQGHEWHGQHVV HWF WKDW RQ WKH FRQWUDU\ WKH\ DUH XVHOHVV DQG OLDEOH WR LQFUHDVH WKH HYLFWHHV¶ GLVWUHVV DQG LVRODWLRQ &RQVLGHULQJ WKH IDFW WKDW HYLFWLRQV RI IDPLOLHV LQFOXGLQJ GHSHQGHQW FKLOGUHQ LPSHULO WKH FKLOGUHQ¶V KHDOWK HGXFDWLRQ DQG VDIHW\ DQG DUH LQ UDGLFDO GLVUHJDUG RI WKH ,QWHUQDWLRQDO &RQYHQWLRQ RQ &KLOGUHQ¶V 5LJKWV &RQVHTXHQWO\ FRQVLGHULQJ WKH IDFW WKDW HYLFWLRQV RI WHQDQWV ZKR DUH WKH YLFWLPV RI VRFLDO YLROHQFH DUH OLDEOH WR GLVWXUE SXEOLF SHDFH DQG RUGHU
7+( 0$<25 25'(56 Â&#x2020; 7KH &LW\ RI %RELJQ\ LV GHFODUHG WR EH D ]RQH RI SURWHFWLRQ RI WHQDQWV LQ HFRQRPLF GLI¿FXOW\ Â&#x2020; (YHU\ SURFHHGLQJ IRU HYLFWLRQ RI D WHQDQW RU IDPLO\ PXVW EH SUHFHGHG E\ D QRWLFH WR WKH 6WDWH¶V DXWKRULWLHV DQG WKH &LW\¶V VRFLDO DXWKRULWLHV DQG D PHHWLQJ RI WKRVH DXWKRULWLHV IRU WKH SXUSRVH RI LQLWLDWLQJ D JHQXLQH HIIRUW WR DYRLG WKH HYLFWLRQ RU WR ¿QG DOWHUQDWLYH KRXVLQJ IRU WKH HYLFWHH V Â&#x2020; (YLFWLRQV LQ WKH &LW\ RI %RELJQ\ EDVHG RQ HFRQRPLF FRQVLGHUDWLRQV RU EHFDXVH RI WKH HIIHFWV RI VRFLDO LQVHFXULW\ QRW SUHFHGHG E\ MRLQW HIIRUWV E\ WKH DXWKRULWLHV RI WKH 6WDWH DQG RI WKH &LW\ DV SURYLGHG LQ Â&#x2020; DUH SURKLELWHG Â&#x2020; 6DLG SURFHGXUH RI QRWLFH DQG MRLQW HIIRUWV WR GHYHORS DQ DOWHUQDWLYH WR HYLFWLRQ PXVW EH LPSOHPHQWHG LQ DGYDQFH LQ RUGHU WR SUHYHQW HYLFWLRQV RU WKUHDWV RI HYLFWLRQV LQ WKH FLW\
6LJQHG LQ WKH &LW\ +DOO RQ 0DUFK
%HUQDUG %LUVLQJHU
)RUFHG (YLFWLRQV 7RZDUGV 6ROXWLRQV"
$11(; &20021 67$7(0(17 %(7:((1 7+( 081,&,3$/,7< 2) 520( $1' 7+( 81 +$%,7$7 $*)( 0,66,21 7KH 0XQLFLSDOLW\ RI 5RPH DQG WKH 81 +$%,7$7 $GYLVRU\ *URXS RQ )RUFHG (YLFWLRQV $*)( PLVVLRQ WHDP DW WKH HQG RI WKH WHDP¶V YLVLW RI ± )HEUXDU\ DJUHHG WKDW LQYHVWLJDWLRQ DQG HYDOXDWLRQ RI WKH KRXVLQJ HPHUJHQF\ LQ WKH FLW\ ZDV YHU\ LPSRUWDQW 7KH $*)( PLVVLRQ WHDP KDG PHW ZLWK VHYHUDO DVVRFLDWLRQV DQG LQVWLWXWLRQV UHFHLYHG GRFXPHQWDWLRQ DQG SURSRVDOV DQG REVHUYHG FRQGLWLRQV ¿UVW KDQG $PRQJ WKH RUJDQLVDWLRQV WKH\ KDG PHW ZLWK ZHUH (PPDXV 5RPH &DVD GHL 'LULWWL 6RFLDOL )RFXV &DULWDV &RPXQLWj 6 (JLGLR 8QLRQH ,QTXLOLQL $FWLRQ &RQD¿ WHQDQWV¶ FRPPLWWHHV DV ZHOO DV SHRSOH XQGHUJRLQJ SULYDWLVDWLRQ SURFHVVHV DQG RU EHHQ HYLFWHG LPPLJUDQWV IRU H[DPSOH WKH 5RPD DQG UHIXJHHV $W KLV UHTXHVW WKH PLVVLRQ PHW ZLWK WKH 3UHIHFWXUH ,QWHULRU 0LQLVWHU¶V ORFDO DXWKRULW\ WKH $1&,¶V 1DWLRQDO $VVRFLDWLRQ RI ,WDOLDQ 0XQLFLSDOLWLHV &RQVXOWD &DVD $1&,¶V KRXVLQJ FRPPLWWHH DQG WUDGH XQLRQV LQYLWHG E\ $1&, 7KH PLVVLRQ KDG IRXQG WKDW DQ DODUPLQJ QXPEHU RI IDPLOLHV ZHUH WKUHDWHQHG E\ HYLFWLRQ LPPHGLDWH RU IXWXUH 7KHVH LQFOXGHG WKH HOGHUO\ DQG KDQGLFDSSHG SHRSOH KRPHOHVV IDPLOLHV DQG WKRVH OLYLQJ LQ KRVSLWDOLW\ FHQWUHV SHRSOH OLYLQJ WRJHWKHU ZLWK RWKHU IDPLOLHV RU LQ D VLWXDWLRQ RI RYHUFURZGLQJ SHRSOH VWLOO OLYLQJ LQ UHVLGHQFHV VXUYLYLQJ RQ PRQWKO\ VRFLDO ¿QDQFLDO VXSSRUW EHFDXVH RI VHYHUH KRXVLQJ VKRUWDJHV HYLFWHG SHRSOH DQG WKRXVDQGV RI SHRSOH OLYLQJ LQ HPHUJHQF\ VKHOWHUV 7KH QXPEHU RI HYLFWLRQV DOUHDG\ KLJK DSSHDUV WR EH JURZLQJ HVSHFLDOO\ HYLFWLRQV FDXVHG E\ XQSDLG UHQWV LQDGHTXDWH VRFLDO SURWHFWLRQ DQG WKH 6WDWH¶V VHOOLQJ RI LWV RZQ KRXVLQJ SXEOLF VWRFN 7KLV HPHUJHQF\ LQ WKH 5RPH KRXVLQJ VLWXDWLRQ KDV PDQ\ FRPPRQ HOHPHQWV ZLWK WKH FULVLV H[LVWLQJ LQ RWKHU ,WDOLDQ DQG (XURSHDQ WRZQV 2Q 0DUFK WKH HYLFWLRQ GHOD\ SHULRG ZLOO H[SLUH 7KLV *RYHUQPHQW UHJXODWLRQ KDV EHHQ FRPSOHWHO\ LQHIIHFWLYH LQ SURWHFWLQJ WKH SRRUHVW RI WKH SRRU DJDLQVW WKH WKUHDW RI HYLFWLRQV 7KH LPSOHPHQWDWLRQ RI WKLV UHJXODWLRQ KDV EHHQ LQVXI¿FLHQWO\ IXQGHG DQG KDV UHÃ&#x20AC;HFWHG WKH ZLWKGUDZDO RI &HQWUDO *RYHUQPHQW UHVSRQVLELOLW\ LQ WKDW WKH FUXFLDO WDVNV RI DGGUHVVLQJ SUREOHPV RI LQVHFXUH WHQXUH DQG HYLFWLRQV KDYH EHHQ UHOHJDWHG WR WKH PXQLFLSDO JRYHUQPHQW VSKHUH 7KH URRW FDXVHV RI WKH FULWLFDO KRXVLQJ VLWXDWLRQ DUH LGHQWL¿HG DV IROORZV x x x x
WKH FRPELQHG HIIHFW RI WKH H[SRQHQWLDO JURZWK RI KRXVLQJ FRVWV DQG FRQVHTXHQW ULVH LQ UHQWDO SULFHV WKH SURJUHVVLYH HOLPLQDWLRQ RI VRFLDO KRXVLQJ IRU UHQWDO GXH WR SULYDWLVDWLRQ DQG WKH VDOH RI H[WHQVLYH VRFLDO KRXVLQJ SURSHUWLHV IRU H[DPSOH WKRVH RZQHG E\ LQVXUDQFH FRPSDQLHV WKH DEVHQFH RI DQ\ QDWLRQDO DQG (XURSHDQ FRPPXQLW\ LQVWLWXWLRQDO V\VWHP LQ WKH IRUP RI ¿QDQFLDO VXSSRUW WR KHOS DGGUHVV PLJUDWRU\ Ã&#x20AC;RZV WKH FRQWLQXHG DEVHQFH RI D QDWLRQDO KRXVLQJ SROLF\ LQ ,WDO\
,Q WKH GLVFXVVLRQV KHOG ZLWK FULWLFDO VWDNHKROGHUV WKH IROORZLQJ LVVXHV ZHUH DJUHHG XSRQ :H IRXQG WKDW LPSRUWDQW VWUXFWXUDO LQWHUYHQWLRQV DUH QHHGHG WR VXSSRUW WKH KRXVLQJ RSWLRQV DYDLODEOH WR WKDW VHJPHQW RI WKH SRRU WKDW KDV DQ DEVROXWH QHHG IRU SXEOLF KRXVLQJ VXSSRUW DQG WR PDNH DYDLODEOH UHQWDO KRXVLQJ IRU ORZHU PLGGOH DQG ORZHU LQFRPH IDPLOLHV ZKR DUH DOVR LQ QHHG RI VXFK VXSSRUW :H IRXQG WKDW LW LV XQDFFHSWDEOH WR GHFUHDVH KRXVLQJ µYRXFKHUV¶ WKDW KDYH EHQH¿WHG WKRXVDQG RI
BBBBBBBBBBBB
7UDQVODWHG IURP WKH ,WDOLDQ RULJLQDO
)LUVW 5HSRUW RI $*)( WR WKH ([HFXWLYH 'LUHFWRU RI 81 +$%,7$7
IDPLOLHV E\ PDNLQJ UHQWDO FRVWV PRUH DIIRUGDEOH :H IRXQG WKDW WKH FXUUHQW SROLWLFDO DGPLQLVWUDWLYH DSSURDFK RI WKH PXQLFLSDO DXWKRULW\ LV FRUUHFW 7KH PXQLFLSDO DXWKRULW\ KDV DOORFDWHG VLJQL¿FDQW UHVRXUFHV WR LPSOHPHQW D GLYHUVL¿HG SROLF\ DLPHG DW GLIIHUHQW VHJPHQWV RI WKH SRSXODWLRQ ,Q SDUWLFXODU WKLV SROLF\ LV LQWHQGHG WR LQFUHDVH WKH DYDLODELOLW\ RI DIIRUGDEOH UHQWDO KRXVLQJ :H IRXQG WKDW WKH 5RPH 0XQLFLSDO &RXQFLO LV GLVFXVVLQJ WKURXJK D SDUWLFLSDWRU\ PHWKRGRORJ\ DQ LPSRUWDQW OHJDO SURYLVLRQ WR GHVFULEH DQG GHDO ZLWK 5RPH¶V KRXVLQJ HPHUJHQF\ :H DJUHHG WKDW LW LV QHFHVVDU\ WR SURPRWH DZDUHQHVV DW QDWLRQDO DQG LQWHUQDWLRQDO OHYHOV RI WKH LPSRUWDQFH RI DFFHVV WR KRXVLQJ /RVV RI RQH¶V KRPH RU WKH LQDELOLW\ WR KDYH KRPH WKUHDWHQV WKH ULJKW WR OLIH LWVHOI $FFHSWDQFH RI WKLV SULQFLSOH PDNHV DVVLVWDQFH IURP SXEOLF LQVWLWXWLRQV DQ REOLJDWLRQ ,W FDQ DOVR SURPRWH VROLGDULW\ DPRQJVW DOO VWDNHKROGHUV :H SRLQWHG RXW WKH LPSRUWDQFH RI $UWLFOH RI WKH ,QWHUQDWLRQDO &RYHQDQW IRU (FRQRPLFDO 6RFLDO DQG &XOWXUDO 5LJKWV ZKLFK ,WDO\ KDV UDWL¿HG $UWLFOH VWDWHV WKDW ³>W@KH 6WDWHV 3DUWLHV WR WKH SUHVHQW &RYHQDQW UHFRJQLVH WKH ULJKW RI HYHU\RQH WR DQ DGHTXDWH VWDQGDUG RI OLYLQJ IRU KLPVHOI DQG KLV IDPLO\ LQFOXGLQJ DGHTXDWH IRRG FORWKLQJ DQG KRXVLQJ DQG WR WKH FRQWLQXRXV LPSURYHPHQW RI OLYLQJ FRQGLWLRQV 7KH 6WDWHV 3DUWLHV ZLOO WDNH DSSURSULDWH VWHSV WR HQVXUH WKH UHDOLVDWLRQ RI WKLV ULJKW´
:H IRXQG WKDW LW LV QHFHVVDU\ WR SURPRWH DQ µDFWLRQ SODQ IRU ]HUR HYLFWLRQV¶ EDVHG RQ WKH ULJKW WR KRXVLQJ DV D ULJKW WR OLIH DW ORFDO QDWLRQDO DQG (XURSHDQ OHYHOV :H IRXQG DJUHHPHQW RYHU WKH SURJUDPPDWLF SURSRVDO LQFOXGHG LQ WKH GHOLEHUDWLRQ RYHU KRXVLQJ SROLFLHV LQ WKH 5RPH DUHD ZKLFK ZDV DGRSWHG E\ WKH PXQLFLSDOLW\ JRYHUQPHQW DQG SDUWLFXODUO\ WKH GHFLVLRQ RI WKH 0XQLFLSDO &RXQFLO WR GHFODUH 5RPH DQ µHYLFWLRQV IUHH WHUULWRU\¶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¿QG VROXWLRQV WR WKH KRXVLQJ FULVLV 7KH GHOHJDWLRQ ZLOO UHSRUW WKH UHVXOWV RI WKLV PLVVLRQ WR WKH QH[W $*)( PHHWLQJ LQ RUGHU WR FRQFUHWHO\ IROORZ XS LGHQWL¿HG LVVXHV 7KLV ZLOO EH FDUULHG RXW ZLWK UHVSHFW WR WKH DXWRQRP\ RI DOO RUJDQLVDWLRQV DQG LQGLYLGXDOV FRQFHUQHG
7+( 081,&,3$/,7< 2) 520( &ODXGLR 0LQQHOOL UHVSRQVLEOH IRU KRXVLQJ SROLF\ 1LFROD *DOORUR 0D\RU¶V GHOHJDWH IRU KRXVLQJ HPHUJHQF\
6LJQHG 520( )(%58$5<
81 +$%,7$7 $*)( 0,66,21 &HVDUH 2WWROLQL ,QWHUQDWLRQDO $OOLDQFH RI ,QKDELWDQWV %HUQDUG %LUVLQJHU 0D\RU RI %RELJQ\ )UDQFH -DFTXHOLQH /HDYLWW +XDLURX &RPPLVVLRQ 86$ 2OLYLHU 9DOHQWLQ $QWL HYLFWLRQ FR RUGLQDWLRQ )UDQFH