Friday 16 January 2015

The penalty for insider trading does not require having obtained a specific economic benefit



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.