The AFM has imposed an administrative fine for communicating insider knowledge


On 26 June 2008, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine on Mr V.R. Muller, director and major shareholder of (currently) Spyker N.V. The amount has been mitigated in the decision to €24,000, following which the Rotterdam District Court further mitigated the amount to €10,000. The Trade and Industry Appeals Tribunal (CBb) confirmed the violation by decision dated 24 April 2012 and definitively set the fine amount at €11,400.

The fine was imposed because the AFM has established that Mr Muller shared insider knowledge with a third party. This communication did not lead to a transaction. But such communications are banned in any case as well.

On the basis of Section 5:57(1), at a, of the Financial Supervision Act it is prohibited to communicate the data to which the inside information relates to a third party, other than in the course of his normal duties, profession or position. Sharing such information could result in it spreading further.

It was the first time that the AFM imposed a fine for violation of the prohibition of disclosure. This is one of the rules intended to prevent market abuse and to ensure the honest and efficient operation of capital markets in which investors can have confidence.

By the middle of 2007, Mr Muller held information that an important, positive press release was to be issued by Spyker N.V. He shared this information with his bank.

Based on previous court decisions, the AFM was not permitted to publish the fines imposed immediately. The AFM's decision has become final as a result of the judgment of the CBb and can no longer be submitted to the courts for review by interested parties.

If you have any questions or comments you can contact the Financial Markets Information Line on: 0800-5400 540 (free of charge).

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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