The Financial Supervision Authority imposed fines for the breach of the notification obligation
The Financial Supervision Authority punished in a misdemeanour proceeding the public limited companies Infortar, Rehabilitation Centre Viking and Vicron Investment Group, the private limited companies HHL Rühm and Tekali, and Veiko Taevere, with a fine. The reason for the imposition of the fines was the failure of the managers of the public limited companies listed on NASDAQ OMX Tallinn Exchange, their intimates or the legal persons related to them, to disclose transactions with the securities of the issuer.
According to the Securities Market Act, the supervisory board of issuers and members of the management board are obliged to inform the Financial Supervision Authority of their transactions with the shares of the publicly traded company managed by them. At that, there is also the obligation to disclose the transactions of the legal person related to the manager.
“We regard it as very important that the managers of the companies listed on the stock exchange would take their obligations with a sense of responsibly, and all issuers and their managers would disclose information similarly and correctly. Notification of the transactions performed by the managers of issuers or the persons closely related to them in their own name is valuable information for market participants and also an additional instrument for the conducting of market supervision. A fine is rather disciplinary than punishing,” Kristjan-Erik Suurväli, Head of the Market Supervision and Enforcement Division of the Financial Supervision Authority, commented.
It was a verification of the notification of the transactions, conducted routinely by the Financial Supervision Authority. In addition to the everyday receipt of notifications, the financial supervision conducts an annual thorough inspection in the course of which the lists of the people who have inside information (insiders) are compared with the databases of the commercial register, the Estonian Central Register of Securities, banks, etc.
Information regarding the transactions made by connected persons is available on the website of the Financial Supervision Authority.