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The Sanctions Commission has fined Clariant Ltd CHF 750,000 for breaches of the provisions on ad hoc publicity.
SIX Exchange Regulation AG is responsible for monitoring and enforcing stock exchange obligations concerning listed companies. After carrying out a preliminary investigation on 11 January 2018, SIX Exchange Regulation AG opened an investigation into Clariant Ltd following a media release regarding the agreement over the proposed merger of Clariant Ltd and Huntsman Corporation on 22 May 2017. Having completed a thorough investigation, SIX Exchange Regulation AG submitted a proposal for a sanction to the Sanctions Commission, which approved the proposal based on the evidence submitted and fined Clariant Ltd CHF 750,000 with the decision on 2 August 2019. The decision of the Sanctions Commission became legally enforceable after Clariant Ltd chose not to appeal.
Clariant Ltd announced the agreement over the proposed merger between Clariant Ltd and Huntsman Corporation via media release on 22 May 2017; however, on 19 May 2017, Clariant Ltd had already disclosed potentially price-sensitive information during trading hours to Swiss Radio and Television SRF as part of a television report which was being produced for the TV show ECO. According to the provisions on ad hoc publicity, an issuer must inform the market of any potentially price-sensitive facts arising in the course of its business activities as soon as it becomes aware of the main points of such information. Potentially price-sensitive information may not be disclosed without informing other market participants simultaneously via an ad hoc release. The Sanctions Commission qualified this disclosure, without informing other market participants simultaneously, as negligent and the violation of the provisions on ad hoc publicity as serious. In considering the sanction, the Sanctions Commission took into account the gravity of the breach, the degree of fault, the sensitivity of Clariant Ltd to a penalty, and the fact that no other sanctions had been imposed on the company in the preceding three years.
