Financial Supervisory Authority imposes penalty payment of EUR 35,000 on Investors House Oyj
The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment of EUR 35,000 on Investors House Oyj, as in 2013–2016 the company has violated several provisions of the Securities Markets Act, and the regulations of the FIN-FSA and other provisions issued by virtue of said Act, concerning the issuer's disclosure obligation and the public disclosure of regulated information.
The shares of Investors House Oyj are admitted to trading on a regulated market operated by Nasdaq Helsinki Ltd. In September 2013, the company failed to comply with the ongoing disclosure obligation, as provided in the Securities Markets Act, by omitting to disclose, without undue delay, matters relating to the company and its operations that are likely to have a material effect on the value of the company's shares. The company has failed to issue a profit warning after it had become likely for the company that the future prospects presented for the financial period in respect of profit from rental operations will not realise.
In addition, in February 2014 and in 2016, the company failed to disclose, via a separate stock exchange release, information on its future prospects, financial performance and dividend distribution proposal. Disclosure of these matters materially impacting the value of the shares in a report attached to the stock exchange release was not adequate. In March 2016, the company also failed to comply with other provisions relating to the public disclosure of regulated information.
The objective of the provisions concerning the ongoing disclosure obligation is to ensure that investors have access to sufficient information on matters that are likely to have a material effect on the value of a security. The purpose of procedures relating to the disclosure of regulated information is to ensure investors’ fast, equal, non-discriminatory and simultaneous access to the information.
The amount of a penalty payment is based on a comprehensive assessment taking into account, among other things, the nature, extent and duration of the act and the financial position of the actor. A penalty payment shall amount to no more than 10% of the turnover of the year preceding the omission and to no more than EUR 10 million. The maximum amount of a penalty payment determined on the basis of the company's turnover for 2012 would have been slightly more than EUR 55,000. The penalty payment is ordered payable to the State.
The decision of the FIN-FSA is not yet legally binding. The company has the right to appeal the decision of 22 November 2016 to the Market Court within 30 days of the receipt of notice of said decision.
For further information, please contact
Sonja Lohse, Head of Director General's Staff, Chief Advisor
Requests for interviews
FIN-FSA Communications, tel. +358 50 385 5154
Decision by the Financial Supervisory Authority (pdf, in Finnish)