Release Date: 24th January 2013
To access the original FSA document, click here.
Summary
Stefan Chaligné has been fined and prohibited from performing any function related to regulated activities in the UK by the Financial Services Authority (FSA). The sanctions imposed on Mr Chaligné include a financial penalty which consists of a disgorgement of €362,950 for benefits gained through market abuse, along with an additional penalty of £900,000. Moreover, he is prohibited from any involvement in regulated activities due to findings that he is not a fit and proper person. This order came into effect on 24 January 2013.
The decision to impose these sanctions followed a Tribunal’s agreement with the FSA’s initial assessment, as outlined in a Decision Notice dated 22 December 2010. Mr Chaligné had referred this notice to the Tribunal on 19 January 2011, which later confirmed the penalties in a decision released on 28 September 2012. The penalties are rooted in actions considered to be market abuse under the Financial Services and Markets Act 2000.
Key takeaways for other firms and individuals in the financial services industry include the importance of adhering to regulatory standards concerning market practices. Engaging in market abuse not only leads to substantial financial penalties but can also result in being barred from performing any professional roles within regulated activities. Firms must ensure compliance with market conduct rules to avoid legal and financial repercussions and to maintain their standing as fit and proper entities within the industry. The case of Mr Chaligné serves as a stern reminder of the consequences of failing to uphold the integrity of financial markets.
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