On 9 May 2019, the Oslo Stock Exchange resolved to impose a violation charge on Element ASA of NOK 586,200 for breach of the duty to disclose inside information.
The Oslo Stock Exchange has passed the following resolution:
“For breach of the duty to disclose inside information to the market pursuant to section 5-2 (1) of the Securities Trading Act, a violation charge is imposed on Element ASA equivalent to three times the Company’s annual listing fee, i.e. NOK 586,200, cf. sections 21-4 (3) and 19-1 (2) of the Securities Trading Act, cf. section 17-1 of the Securities Trading Regulations.”
A brief summary of the case:
EY resigned as Element auditor due to what EY considered to be material deficiencies in the Company’s accounting function. This matter constituted inside information. The Company’s stock exchange notice of 22 November 2018 gave insufficient and incorrect information about the factual circumstances of EY’s resignation.