The
penalty for insider trading does not require having obtained a specific
economic benefit
The
Division of Administrative Litigation of the Supreme Court of Spain delivered a
ruling dated November 14, 2014 ( application number 5244/2011 and rapporteur Mr
Bandrés Sánchez- Cruzat ) , whereby it confirmed the fine of 210,000 euros to
the Ministry of Economy imposed in 2010 the president of a company insider
trading in connection with the sale of shares of the same Company in 2005 .
The
Court rejected the appeal against the judgment of the High Court in 2011 and confirmed
the fine.
In its
judgment , the Supreme Court of Spain considers that the purchase in December
2005 by an entity of 51,780 shares of real estate amounting to 54.26 euros per
share was prompted by information that the then president of that entity
forwarded to the assignee of the acquiring company , given the close ties of
family and professional character existing between society and punished.
The
Supreme Court underlines: "it is not required to show that with the misuse
of information either of the persons involved obtained a specific economic
benefit. " The intention of the legislature with the imposition of this
legal duty to agents and individuals operating in the stock market is to
preserve the integrity of the securities markets and ensure equal conditions of
potential investors.