CBI reportedly seeks High Court confirmation of its first adverse assessment under the Market Abuse regime
It has been reported in Irish media that on 28 April 2022, the Central Bank of Ireland (CBI) lodged High Court proceedings to confirm an assessment that an individual engaged in insider dealing, contrary to the Market Abuse regulations.
It has been reported that, following a CBI investigation that commenced in 2011, an independent panel of assessors (Mr. Justice Ronan Keane and Mr. Justice Joseph Finnegan) determined that in late 2008, the individual, whilst a non-executive director of a listed company, used inside information concerning the recruitment of a new chief executive, when acquiring shares in that company.
The assessors reportedly imposed a public caution, a monetary penalty of €75,000, a disqualification from being involved in any regulated financial service provider for a period of five years, and a direction to pay costs in the amount of €37,500.
The High Court confirmation hearing is scheduled to take place before Ms. Justice Irvine on 23 May 2022. The High Court may confirm, vary or set aside the CBI's assessment (including sanctions), whether in whole or in part, or remit the case to be decided by the CBI in accordance with the directions of the Court.
This is the first CBI adverse assessment under the Market Abuse regulations and confirms the CBI's continued focus on market conduct specifically and individual accountability more generally. This assessment also demonstrates the broad scope of the market abuse regime, and its application to individuals acquiring and/or disposing of shares in a listed company that is not a financial service provider and thus, not subject to CBI regulation in the ordinary course. Subject to confirmation by the High Court, this assessment will no doubt set a precedent for future CBI assessments.
ALG has been tracking the CBI's increased focus on market conduct for some time and has formed a cross-departmental team to assist clients. We will provide further updates on these developments, including key takeaways for market participants and its precedential impact on future CBI assessments, in due course.
For further information in relation to this topic, please contact Dario Dagostino, Partner, Mark Devane, Partner, Paul White, Partner, Sian Langley, Knowledge Lawyer, or any member of ALG's Disputes or Investigations teams.
Date published: 11 May 2022