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ARTICLE · 12 DECEMBER 2023

Decision On Violation Penalty For Uncovered Short Selling

Advokatfirmaet Hjort
Advokatfirmaet Hjort
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Advokatfirmaet Hjort

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This is the latest decision in a larger complex of cases where several investors have been imposed violation penalties for similar violations.

NorwayFinance and Banking
Mikkel Toft Gimse
Mikkel Toft Gimse

The Financial Supervisory Authority of Norway (Finanstilsynet) has imposed a violation penalty of NOK 2 million on the British management company, Cazadores Investments Limited for breaching the prohibition against uncovered short sales. This is in addition to the confiscation of profits for violations of the prohibition on uncovered short selling with regards to selling shares in connection with the new issuance of Flyr shares last year.

This is the latest decision in a larger complex of cases where several investors have been imposed violation penalties for similar violations. Some of the cases are currently in the appeals process with the Norwegian Ministry of Finance.

According to the EU Regulation on Short Selling (EU No 236/2012), uncovered short selling is prohibited. This means that a seller must have secured access to the financial instrument in question, so that settlement can take place on the settlement date by meeting one of the following three

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