The Belgium Financial Services and Markets Authority (FSMA) published a Sanctions Committee decision finding that Nyrstar NV committed two infringements of the EU Market Abuse Regulation and imposing an administrative fine of EUR 80,000. The directors (or their permanent representatives) who were in office at the time were cleared of allegations that they took part in the decision to disseminate false or misleading information about the company’s liquidity position. The infringements concerned (i) a breach of the prohibition of market manipulation under Article 15 of Regulation (EU) No 596/2014 and (ii) a failure under Article 17 to inform the FSMA, immediately after a delayed public disclosure of inside information, of the delay and to provide a written explanation of how the legal conditions for delaying disclosure were met. On market manipulation, the committee found Nyrstar provided false or misleading liquidity information on 30 October 2018 by stating it had “strong committed liquidity” of EUR 631 million when that amount had decreased to EUR 440 million, with the latest weekly liquidity forecast at end-December 2018 stabilising at a positive amount below EUR 200 million, which was also described on its website as “enhanced” despite being lower than the prior quarter. The second of three market manipulation charges was considered partially well founded, while other allegations about misleading statements on solvency, liquidity, debt and capital restructuring were dismissed; Nyrstar was also cleared of charges relating to its relationship with Trafigura and certain sales and purchase agreements, and statements about expected profit contribution from redevelopment of its Port Pirie zinc smelter site. The decision is available on the FSMA website in Dutch only.

Original source View in tracker