The Board of Directors of Oslo Børs approved the following resolution: “For a breach of the duty to publicly disclose inside information to the market pursuant to the Securities Trading Act, Section 5-2 (1), a violation charge is hereby imposed on Sandnes Sparebank equivalent to four times the company’s annual listing fee, i.e. NOK 658,400, cf. Securities Trading Act, Section 17-4, third paragraph, and Section 15-1, cf. Securities Trading Regulations, Section 13-1.”
This decision may be appealed to the Stock Exchange Appeals Committee pursuant to the provisions of Chapter 8 of the Stock Exchange Regulations. Any appeal must be submitted within two weeks.
A brief summary of the case:
Sandnes Sparebank did not publicly disclose inside information regarding losses on customer commitments sufficiently promptly. Stock exchange listed companies are subject to a duty of disclosure that requires them to publicly disclose without delay and on their own initiative inside information that concerns the company directly.
The circumstances of the case relate to two situations that changed the bank’s expected loan loss calculations and led to significantly higher write-downs. The write-downs had a material impact on the bank’s consolidated result and contributed to a need to raise new capital.