FIN-FSA imposes an administrative fine on Carlson Capital UK LLP for delay in notification of short positions subject to public disclosure
The Financial Supervisory Authority (FIN-FSA) has imposed an administrative fine of EUR 30,000 on Carlson Capital UK LLP. The company failed to comply with the disclosure requirement concerning short positions.
On 7 February 2014, the net short position of Carlson Capital UK LLP fell below the disclosure threshold of 0.5% referred to in the Regulation on short selling. The company should have notified FIN-FSA of the change in the position on the following trading day no later than 3.30 pm Finnish time, in order to allow FIN-FSA to disclose this information to the public. However, the company did not submit the required notification to FIN-FSA until 26 June 2015, i.e. more than one year and four months late.
In its comprehensive assessment, FIN-FSA considered, in particular, the duration of the delay, the fact that the company is a professional financial market participant, that the position was above the publication threshold and that the notification was submitted only after FIN-FSA had contacted the company.
The obligation to notify net short positions applies to all investors and market participants. A net short position in relation to the share capital of a company whose shares are traded on a regulated market in Finland must be notified to FIN-FSA when the position reaches, exceeds or falls below the threshold of 0.2% of the company’s issued share capital. A new notification must be submitted for each 0.1 percentage point rise once the threshold has been breached. FIN-FSA publishes notified net short positions on its website when the position reaches, exceeds or falls below the threshold of 0.5% of the company’s issued share capital.
The administrative fine is payable to the State. The administrative fine payable by a legal person is no less than EUR 5,000 and no more than EUR 100,000.
The decision to impose an administrative fine is not yet legally binding. The company has the right to appeal such a decision to the Market Court within 30 days of receipt of notice of the decision.
For further information, please contact
- Sonja Lohse, Head of Director General's Staff, Chief Advisor, tel. +358 10 831 5311.
- FIN-FSA decision (in Finnish, pdf)