FINLAND: FIN-FSA imposes fine on Carlson Capital UK LLP for delays in notification of short positions subject to public disclosure

Tuesday December 15 2015

A fine of €30,000 was imposed on Carlson Capital LLP for failing to comply with net short position disclosure requirements.

On 07 February 2014, the net short position of Carlson Capital LLP fell below the disclosure threshold of 0.5% and a notification should have been made to FIN-FSA by 3:30pm Finnish time on the following day. However the company did not submit the required notification to FIN-FSA until 26 June 2015 (more than 1 year and 4 months late).

The company failed to comply with certain provisions relating to the EU Short Selling Regulation which can result in fines ranging from €500 for natural persons to €100,000 for legal persons.

When deciding upon the fine imposed, FIN-FSA considered the duration of the delay, the fact the company is a professional financial market participant, the breach of the threshold and that notification was submitted only after FIN-FSA had contacted the company.

The decision to impose an administrative fine is not yet legally binding. The company has the right to appeal such a decision to the Market Court within 30 days of receipt of notice of the decision.

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