The Swedish
stock exchange has fined measurement technology firm Hexagon 6.2 million
Swedish crowns ($706,000) for breaching its rules by delaying when it
announced
the arrest of its chief executive last year.
Hexagon CEO
Ola Rollen was arrested on Oct. 26, 2016 over alleged insider trading in Norway
concerning deals not related to the Swedish firm. Rollen, who denies the
allegations, was charged earlier this month.
Hexagon issued
a statement regarding the arrest only on Oct. 31, citing a lack of clear
information regarding Rollen's detention until that point.
But the Nasdaq
Stockholm exchange said in a statement on Thursday that the information
received by the company had been specific enough to allow it to inform markets
earlier.
The exchange's
disciplinary committee also criticized Hexagon for not informing markets in its
statement of how it intended to address the situation, though also it also
cited mitigating circumstances.
"Given
the surprising nature and severity of the situation in which Hexagon found
itself and the challenge of applying the new Rule Book ... the Disciplinary
Committee determined that the sanction should not exceed a fine of two annual
fees," it said.
Companies pay
an annual fee to be listed on the exchange.
Rollen, one of
Sweden's most successful chief executives, has been charged over insider
trading in connection with an investment in Norwegian company Next Biometrics
ASA in October 2015. He has said he will stay on as Hexagon CEO.
($1 = 8.7913
Swedish crowns)
*REUTERS*
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