FIN-FSA imposes an administrative fine on Noster Credit Opportunities Master Fund Limited for delay in notification of short positions
The Financial Supervisory Authority (FIN-FSA) has imposed an administrative fine of EUR 15,000 on Noster Credit Opportunities Master Fund Limited. The company failed to comply with the notification requirement concerning short positions.
The net short position of Noster Credit Opportunities Master Fund Limited on 30 July 2013 exceeded, and on 16 July 2014 fell below, the notification threshold of 0.2% referred to in the Regulation on short selling. The company should have notified FIN-FSA of both positions, on the following trading day no later than 3.30 pm Finnish time. The company submitted the required notification of exceeding the threshold on 10 January 2014, after having been contacted by FIN-FSA on several occasions. The delay in notification was about five months. The company submitted the required notification of the position falling below the threshold on 3 October 2014, after having been contacted by FIN-FSA. Here, the delay in notification was about two months.
In its comprehensive assessment, FIN-FSA considered the duration of delay, the fact that the company is a professional investor and, in particular, that the notifications were submitted only after FIN-FSA’s request.
The obligation to notify short net short positions applies to all investors and market participants. A net short position in relation to the share capital of a publicly traded company must be disclosed where 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.
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 the 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.
- Decision by the Financial Supervisory Authority (in Finnish, pdf)
The date when the company submitted the required notification has been amended to 3 October 2014. The published version stated the date had been 3 October 2015. The amendment was made on May 29 at 16.54.