The Swedish Financial Supervisory Authority opens a sanction case regarding Nordnet’s internal governance in relation to EU’s regulation on short-selling
The Swedish Financial Supervisory Authority (SFSA) has decided to open a sanction case against Nordnet, as a continuation of the previously initiated investigation regarding internal governance and control in relation to EU’s short-selling regulation.
The background to the case is the short-selling transactions carried out by customers of Nordnet in Moment Group AB in February 2021. The SFSA notified Nordnet of an investigation regarding Nordnet's internal routines and processes for short selling. Since then, a site visit has been carried out, and the SFSA have requested and received written material.
The SFSA have today notified Nordnet that a sanction case will be opened, which is part of the SFSA’s investigation process. A sanction case means that the SFSA consider that there are sufficient grounds for assessing whether the observations made in the investigation should lead to a sanction, or if the investigation should be closed in any other way. The next step is that the SFSA will send a letter to Nordnet in which the SFSA describe their observations and explains the legal basis that they consider give reason to consider a sanction. Such a letter will be sent to Nordnet in the beginning of next year, and Nordnet will have the opportunity to share their opinion on the matter.
- The background to this case is the trading with shares in Moment Group in February, which was very special. The company made a share issue with complex terms, which the market had difficulties in interpreting. The share was perceived as incorrectly priced on the stock exchange with high volatility and intense trading as a result. In addition, several trading halts took place during the day. Some of our customers held short positions during the day in Moment Group, and in connection with this, we realized that we needed to review our processes regarding short selling to ensure coverage of short positions in all situations, which we also informed the SFSA about, says Johan Tidestad, Chief Communications Officer at Nordnet.
- Since the investigation started this spring, we have had a constructive dialogue with the SFSA regarding our internal routines and processes for short selling. We have had a meeting with them, and they have requested and also received written material. We have also presented how we view the situation. I can not go into more details at this stage, given that the case is not yet finalized, says Johan Tidestad, Chief Communications Officer at Nordnet.
- I don’t want to speculate what the process will lead to, but a possible outcome is of course that we receive a sanction. We simply have to wait for the further investigation, says Johan Tidestad, Chief Communications Officer at Nordnet.
This disclosure contains information that Nordnet is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 16-12-2021 13:30 CET.
For further information, please contact:
Johan Tidestad, Chief Communications Officer
johan.tidestad@nordnet.se, +46 708 875 775
Nordnet is a pan-Nordic leading digital platform for savings and investments. Through innovation, simplicity and transparency, we challenge traditional structures, and give private savers access to the same information, tools and services as professionals. Visit us at www.nordnetab.com, www.nordnet.se, www.nordnet.no, www.nordnet.dk or www.nordnet.fi.