FIN-FSA investigated 117 cases related to securities market trading and disclosure obligations in 2015
In the course of 2015, FIN-FSA completed investigations of 117 cases related to securities market trading and disclosure obligations (2014:83). Of these cases, 47 (36) concerned possible abuse of inside information, 40 (23) market manipulation, 24 (18) the disclosure obligation under the Securities Markets Act and 6 (6) other cases.
The cases originated both in FIN-FSA's own observations and in routine investigations as part of the supervision of trading, and in notifications made to FIN-FSA. Where a listed company publishes a stock market release of major significance, e.g. announcing a merger or acquisition, FIN-FSA, as a matter of routine, conducts an investigation of trading without any specific suspicion of abuse of insider information. FIN-FSA monitors the release of information and disclosure of periodic information by listed companies, as well as compliance with other disclosure obligations, and investigates the appropriateness of disclosures based on supervisory findings. FIN-FSA also receive tips and notifications from various parties, such as the stock exchange, investment service providers, the media, individual investors or foreign supervisory authorities.
Finnish investment service providers and Finnish branches of foreign investment service providers are obligated to report to FIN-FSA, without delay, if they have reason to suspect that a transaction may be associated with abuse of insider information or market manipulation. FIN-FSA received notifications from domestic and foreign investment service providers of a total of 58 suspicious securities transactions or other transactions in 2015 (2014:64). There were 30 notifications from the stock exchange (2014:27). A notification does not mean that abuse has taken place. It is made on account of an irregular financial transaction or trade detected by an entity subject to the reporting obligation, where there may be reason to suspect abuse of inside information or market manipulation and so must be reported to FIN-FSA. The notification may e.g. be related to a large transaction undertaken by a trading participant before release of results, or transactions that have an effect on the closing price.
The cases of market manipulation increased in number from the previous year. This largely reflects the alarms generated by the securities intermediaries' automated surveillance systems. In the table, disclosure obligation covers listed companies' ongoing and periodic disclosure obligations, the obligation to disclose major holdings, and securities offerings. Recently, the obligation to disclose major holdings has been in the focus of supervision, which is reflected in the number of administrative sanctions issued for non-compliance with such obligation. Other cases in the statistics include short-selling.
The table covers all requests for police investigation made by FIN-FSA in 2015, and all administrative sanctions imposed. FIN-FSA made 5 requests for police investigation, issued 2 public reprimands and imposed 19 administrative fines.
For further information, please contact
- Sari Helminen, Head of Division, tel. +358 10 8315264