FIN-FSA imposes an administrative fine on Capstone Volatility Master (Cayman) Limited for delay in notification of a short position subject to public disclosure
FIN-FSA imposes an administrative fine of EUR 20 000 on Capstone Volatility Master (Cayman) Limited. The company failed to comply with the disclosure requirement concerning short positions.
The net short position of the company fell below the disclosure threshold of 0.5% on 12 November 2015.
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. The company submitted the required notification to FIN-FSA on 12 January 2016, i.e. about two months too late.
In its overall assessment, FIN-FSA considered, in particular, the duration of the delay, the size of the position, and the fact that the company is a professional financial market participant.
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 publicly traded must be disclosed when the position reaches or falls below the threshold of 0.5% of the company’s issued share capital.
The administrative fine is payable to the state of Finland. 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 against 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.
Appendix
FIN-FSA decision (in Finnish, pdf)