Norway's Financial Supervisory Authority (Finanstilsynet) published a supervisory report on Carnegie AS’s handling of a large buy order in Solstad Offshore ASA (SOFF) on 14 December 2023 and concluded that the firm disclosed inside information to investors without meeting the requirement for proper information handling. Finanstilsynet found a breach of the prohibition on unlawful disclosure of inside information under the Market Abuse Regulation (EU) 596/2014, Article 14(c) in conjunction with Article 10(1), as implemented in Norwegian law. The case concerned an order from Aker Capital AS to buy up to 8.2 million SOFF shares at a maximum price of NOK 50 per share, equivalent to around 10% of SOFF’s issued shares and a premium of about 40% to the prevailing market price. After Oslo Børs closed, Carnegie contacted 154 existing shareholders using a standardised script that conveyed key order terms (including size and price) but withheld the buyer’s name, resulting in 68 shareholders agreeing to sell; the order was covered the same evening and publicly flagged later that night. Finanstilsynet assessed the information shared as clearly constituting inside information irrespective of trading hours, criticised Carnegie’s routines and lack of sufficiently operationalised procedures and documentation, and reaffirmed its view that lawful disclosure in the “normal exercise” of work requires measures such as documented assessments and “wall-crossing” that limits misuse risk and avoids placing recipients in an involuntary inside position. Finanstilsynet nevertheless chose not to levy an administrative penalty, placing particular weight on the fact that the information was shared after the market had closed and that, on its understanding, the mandate would not be extended into the next trading session, while noting that misuse risk is not eliminated simply because the market is closed. Finanstilsynet noted that Carnegie has submitted a new, more concrete routine for unusual trades and the handling of inside information on the trading desk, and expected the firm to align its future conduct with the legal interpretation set out in the report.
Norwegian Finanstilsynet 2025-04-10
Norway's Financial Supervisory Authority criticises Carnegie for unlawful disclosure of inside information in Solstad Offshore order but does not impose a fine
Norway's Financial Supervisory Authority (Finanstilsynet) found Carnegie AS in breach of the Market Abuse Regulation for disclosing inside information during a large buy order in Solstad Offshore ASA shares. The breach involved sharing key order terms with shareholders without proper information handling, despite the market being closed. Finanstilsynet did not impose a penalty but emphasized the need for documented assessments and procedures to prevent misuse, noting Carnegie's commitment to improvement.