SEC: Fine of €100k to MIG
31/10/2008 14:39
The Board of Directors of the Securities and Exchange Commission would like to inform the investing public that at the meeting held on September 29, 2008 it decided to impose an administrative fine of €100,000 to Marfin Investment Group for violating paragraph 5(1) of Directive 5/2005 of the SEC on the Code of Conduct of the Directors and the Related Persons and article 13 of the Acts of Persons who Hold Confidential Information and the Acts of Market Manipulation Law 2005 for the purchase of 465,000 shares of Marfin Popular Bank in the Athens Stock Exchange on December 17, 2007 in a closed period.
Specifically, the SEC took the decision above, taking into account the following:
- On December 17, 2007, the Company acquired 465,000 shares of the Issuer at the Athens Stock Exchange.
- The Company had a closed bond with the Issuer’s Directors due to the common Directors between the two companies. As a result, it released an announcement on the same day under the title “Transactions of Associated Persons” with regard to the transaction dated December 17, 2007 as “person who has a closed bond with the Director”.
- The financial year of the Issuer expires on December 31 of each year. Taking into account the definition of the “closed period”, according to which is the period of one month prior to the expiry of the financial year and expands until the date of announcement of the indicative results, the transaction dated December 17, 2007 fell under the closed period.
In order to take this decision, the SEC took into account the following factors:
i. The seriousness of such kind of violations, which is reflected by the maximum administrative fine provides for violations of Directive 5/2005 of the SEC to article 15 of the Market Manipulation Law, that is, £200,000 (€341,720.29).
ii. The gravity that the SEC gives to secure that the persons covered by the Directive 5/2005 comply fully with its provisions. The compliance with Directive 5/2005 secures that the persons that are in privileged position compared to the investing public proceed with transactions under the same terms.
Specifically, the SEC took the decision above, taking into account the following:
- On December 17, 2007, the Company acquired 465,000 shares of the Issuer at the Athens Stock Exchange.
- The Company had a closed bond with the Issuer’s Directors due to the common Directors between the two companies. As a result, it released an announcement on the same day under the title “Transactions of Associated Persons” with regard to the transaction dated December 17, 2007 as “person who has a closed bond with the Director”.
- The financial year of the Issuer expires on December 31 of each year. Taking into account the definition of the “closed period”, according to which is the period of one month prior to the expiry of the financial year and expands until the date of announcement of the indicative results, the transaction dated December 17, 2007 fell under the closed period.
In order to take this decision, the SEC took into account the following factors:
i. The seriousness of such kind of violations, which is reflected by the maximum administrative fine provides for violations of Directive 5/2005 of the SEC to article 15 of the Market Manipulation Law, that is, £200,000 (€341,720.29).
ii. The gravity that the SEC gives to secure that the persons covered by the Directive 5/2005 comply fully with its provisions. The compliance with Directive 5/2005 secures that the persons that are in privileged position compared to the investing public proceed with transactions under the same terms.
