FIN-FSA ordered conditional fine imposed on Danko Koncar payable
On 9 July 2018, the Financial Supervisory Authority (FIN-FSA) ordered Danko Koncar to pay the base amount of the conditional fine of 40,000,000 euro and the supplementary amount of 10,000,000 euro accrued by that date. The conditional fine was ordered payable since Koncar has failed to publish a bid for shares in Afarak Group Plc or to present a valid reason for non-compliance with the obligation.
On 21 January 2018, the FIN-FSA obliged Koncar to launch a public bid for Afarak shares and imposed running conditional fines to enforce the obligations stated in the decision. The deadline imposed on Koncar to publish a bid lapsed on 18 May 2018. The obligations imposed on Koncar and the running conditional fines remain in force also after the conditional fine is ordered payable.
The decision to impose the conditional fine made in February is not yet legally valid, since Koncar has appealed the decision to the Helsinki Administrative Court. The FIN-FSA decision to order the conditional fine payable even if the decision on its imposition is not legally valid, reflects the importance of public interest, urgency of fulfilling the main obligation and severity of Koncar's misconduct. Koncar's failure to comply with the provisions on the obligation to launch a bid has served to undermine confidence in the securities markets.
The present decision to order the conditional fine payable is not legally valid. Koncar has the right to appeal the decision to the Helsinki Administrative Court within 30 days of the date of service of the decision. Information on the legal validity of the decision is available at the FIN-FSA website.
Further information
- Ville Kajala, Senior Policy Advisor
- Requests for interviews are coordinated by FIN-FSA Communications, tel. +358 9 183 5030 (weekdays 9.00–16.00)
Appendix
- FIN-FSA decision (pdf)