FIN-FSA investigated 102 cases of suspected securities market abuse during first half of the year
In January-June 2015, FIN-FSA investigated 102 cases of suspected securities market abuse (86 in the previous year period). Of these cases, 41 (26) are related to the abuse of insider information, 27 (18) to market manipulation, 30 (34) to the disclosure obligation under the Securities Markets Act, and 4 (8) to other types of abuse.
FIN-FSA investigates suspected market abuse on its own initiative, but it also receives information on suspicious cases through notifications and tips eg from the stock exchange, market participants, the media, individual investors and foreign supervisory authorities. FIN-FSA received from domestic and foreign investment service providers a total of 37 notifications of suspicious securities transactions or other suspicious business activities (30 in the first half of 2014). A major proportion of these came from domestic service providers. The stock exchange made 15 notifications (13 in the first half of 2014).
The number of notifications has been increasing, partly due to improvements in investment service providers’ own control systems and a lower notification threshold for some market participants. A notification related to market abuse is not in itself a request for an investigation but refers instead to an exceptional transaction or matter noticed by a party under the notification obligation, which may provide grounds to suspect that the transaction could involve illegal use of insider information or market manipulation. Suspicion may arise if the transaction involves something that is not typical in the general experience. Parties under the notification obligation are not expected to investigate transactions or their background.
The figures on the disclosure obligation include inspections related to the ongoing and regular disclosure obligation of listed companies, the obligation to disclose major shareholdings, and the offering of securities.
The table includes all requests for investigation made by FIN-FSA and administrative sanctions issued this year by FIN-FSA through 30 June. FIN-FSA made one request for investigation to the police, issued two public reprimands, and imposed nine administrative fines.
For further information, please contact
- Jarmo Parkkonen, Head of Department, tel. +358 10 831 5255
- Laila Hietalahti, Market Supervisor, tel. +358 10 8315244