Olympic Entertainment Group violated the Securities Market Act
Olympic Entertainment Group AS failed to draw up a prospectus supplement when new important information was revealed before the end of the public offer of shares. The Securities Market Act requires that a supplement to the prospectus be drawn up when new important information is revealed.
This obligation arose after the supervisory board of Olympic Entertainment Group decided on 29 September last year to repay a large syndicate loan and terminate the loan contract prematurely after the successful end of the public offer of shares. The decision meant that the purpose of the funds received from the issue was changed compared to what was published in the prospectus. According to the Securities Market Act, Olympic Entertainment Group AS should have published this important change in a supplement to the prospectus.
According to the Financial Supervision Authority, the accuracy and completeness of information published during the period of public offer of shares are extremely important for potential investors to make fully informed decisions.
On 26 January 2007 the FSA imposed a fine of EEK 10 000 on Olympic Entertainment Group AS. The FSA imposed the fine in consideration of the fact that the maximum fine that can currently be imposed for financial offences under the Penal Code and specific laws is EEK 50 000.
On 24 January the Riigikogu passed the Penal Code Amendment Act, according to which the maximum fine was raised to EEK 500 000.