Public reprimand and public warning 

The FIN-FSA may issue a public reprimand or a public warning to

  • supervised entities,
  • other financial market participants,
  • other persons and
  • Foreign EEA branch, EEA institution for occupational pension, supervised entity providing services to Finland without establishing a branch office and organiser of public trade corresponding to a securities exchange operating in Finland under the supervision of another EEA member state.

 
A supervised entity may be given a public reprimand or warning if its conduct is in violation of provisions or regulations applicable to the financial markets or the terms and conditions of its authorisation.

Other financial market participant may get a public reprimand or warning if its conduct is in violation of provisions or regulations applying to the financial markets.

Other persons may be given a public reprimand or warning if they neglect or breach provisions of regulations laid down by virtue of the Prospectus Directive of the European Commission or such provisions of the SMA or regulations provided by virtue there of that concern

  • market abuse,
  • disclosure of information with an influence on the value of a security,
  • disclosure obligation related to the offering of securities or acceptance to public trade or corresponding trade in a member state of the EEA or
  • public tender offers or mandatory bids.

Foreign EEA branches may be given a public reprimand or warning if they neglect provisions required by general good or its obligations under financial market legislation, provisions and regulations, if measures by the supervisory authority of its home state have proven insufficient. Furthermore it is required that the practice in violation of provisions and regulations continues.

Preconditions of giving a public reprimand and public warning

Imposing a public reprimand and warning requires that there has been intent or negligence. In addition, it is required that the matter assessed as a whole does not warrant more severe measures. However, a public reprimand or warning cannot be issued if its recipient immediately upon observing the defect has taken sufficient corrective measures at its own initiative and the defect or neglect is not severe or recurrent.

A public reprimand or warning may be given to natural persons if their conduct is in breach of provisions or regulations personally binding on them.

Furthermore, the imposition of a public warning presupposes that the relevant practice has been continuous, recurrent or otherwise so reproachable that a public reprimand alone cannot be considered a sufficient sanction.

31 March 2010