Investigations conducted by the Austrian Financial Market Authority (FMA) regarding a case of insider trading have reached a successful conclusion. During the course of the investigation, a former manager of an exchange-listed company admitted that he had exploited his knowledge of non-public price-sensitive information to trade in the shares and derivatives of the company before the information had been published by means of ad hoc reports. Ultimately three breaches by the manager of the provisions on insider trading were proven.
By conducting the illicit transactions, the manager had an advantage of € 104,394.39 in the form of both profits as wel as losses avoided. The FMA declared this advantage as void and it was also duly collected. In addition, a fine of € 704,375 was imposed for breaching the provisions on insider trading – the highest ever imposed by the FMA against a natural person.
“Insider trading isn’t worth it!” remarked the FMA’s Executive Directors Helmut Ettl and Eduard Müller. “The rules against insider trading and market manipulation are absolutely essential for the integrity of the capital market and investor confidence. The FMA also has a clear zero-tolerance policy in this regard.” The outcome of the investigations also triggered investigations in other European countries.
The insider trading procedure was concluded by way of the accelerated conclusion of proceedings, which clearly creates legal clarity for the guilty party, which also shortening the official procedure, thereby saving resources and increasing the supervisor’s efficiency.
Insider trading is illegal and doesn’t pay off
Anyone who receives insider information and then uses this knowledge for conducting securities transactions, may make themselves penally liable. By means of ongoing analysis of securities transactions and the use of whistle-blowing systems, the FMA guarantees a strict market monitoring, with the objective of ensuring the integrity of the market and for increasing investor confidence.
Complaints and tip-offs from the market for pursuing market abuse can contribute significantly towards the cleanliness of the Austrian financial market. If you have information about potential insider trading or market manipulation, then report it to the FMA’s complaints unit via the contact form, or anonymously using the FMA’s whistle-blowing reporting system. Anyone conducting dealings in financial instruments on a commercial basis is required to report suspicious transactions and orders to the FMA.
Link to the FMA’s whistle-blower tool: https://www.fma.gv.at/en/whistleblowing/
Journalists may address further enquiries to:
Boris Gröndahl (FMA Media Spokesperson)
+43 1 24959-6010
+43 676 8824 9995
E-Mail: [email protected]