Cap. 476 Art. 22Administrative sanctions.

(1) Without prejudice to the powers, functions and duties assigned to the competent authority in terms of this Act, the Market

Abuse Regulation or any other applicable law, where the competent authority is satisfied that a person’s conduct amounts to a breach of any of Articles 14 and 15, Article 16(1) and (2), Article 17(1), (2),

(4), (5) and (8), Article 18(1) to (6), Article 19(1), (2), (3), (5), (6),

(7) and (11) and Article 20(1) of the Market Abuse Regulation, the competent authority may by notice in writing and without recourse to a court hearing, take the following administrative sanctions and measures:

(a) an order requiring the person responsible for the infringement to cease the conduct and to desist from a repetition of that conduct;

(b) the disgorgement of the profits gained or losses avoided due to the infringement, insofar as they can be determined;

(c) a public warning which indicates the person responsible for the infringement and the nature of the infringement;

(d) withdrawal or suspension of the authorisation of an investment firm;

(e) a temporary ban of a person discharging managerial responsibilities within an investment firm or any other natural person, who is held responsible for the infringement, from exercising management functions in investment firms;

(f) in the event of repeated infringements of Article 14 or 15 of the Market Abuse Regulation, a permanent ban of any person discharging managerial responsibilities within an investment firm or any other natural person who is held responsible for the infringement, from exercising management functions in investment firms;

(g) a temporary ban of a person discharging managerial responsibilities within an investment firm or another natural person who is held responsible for the infringement, from dealing on own account;

(h) maximum administrative pecuniary sanctions of at least three (3) times the amount of the profits gained or losses avoided because of the infringement, insofar as those can be determined;

(i) in respect of a natural person, an administrative pecuniary sanction which does not exceed:

(i) five million euro (€5,000,000) for infringements of Articles 14 and 15 of the Market Abuse Regulation;

(ii) one million euro (€1,000,000) for infringements of Articles 16 and 17 of the Market Abuse Regulation; and

(iii) five hundred thousand euro (€500,000) for infringements of Articles 18, 19 and 20 of the Market Abuse Regulation.

(j) in respect of legal persons, an administrative pecuniary sanction which does not exceed:

(i) fifteen million euro (€15,000,000) or 15% of the total annual turnover of the legal person according to the last available accounts approved by the management body for infringements of Articles 14 and 15 of the Market Abuse Regulation;

(ii) two million five hundred thousand euro (€2,500,000) or 2% of its total annual turnover according to the last available accounts approved by the management body for infringements of Articles 16 and 17 of the Market Abuse Regulation;

(iii) one million euro (€1,000,000) for infringements of Articles 18, 19 and 20 of the Market Abuse Regulation.

For the purposes of sub-paragraphs (i) and (ii) of paragraph (j), where the legal person is a parent undertaking or a subsidiary undertaking which is required to prepare consolidated financial accounts pursuant to Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income in accordance with the relevant accounting directives – Council Directive 86/635/EEC for banks and Council Directive 91/674/EEC for insurance companies – according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking.

(1A) Where the competent authority is satisfied that a person’s conduct amounts to a breach of any of the provisions of this Act, regulations or rules issued thereunder other than any of the provisions thereof which are also regulated by the Market Abuse Regulation, or to a breach of any of the other provisions of the Market Abuse Regulation not referred to in sub-article (1), the competent authority may by notice in writing and without recourse to a court hearing impose on any such natural or legal person an administrative penalty, consisting of a fine which may not exceed one hundred and fifty thousand euro (€150,000) for each infringement or failure to comply, as the case may be.

(2) A person upon whom a notice is served in terms of sub-articles (1) and (1A) may apply to the Tribunal to appeal against the decision of the competent authority in accordance with article 23.

(3) The competent authority may, by means of a public statement, disclose the name of the person sanctioned, the particular breach of the provision of this Act, regulations or rules issued thereunder, and the administrative sanction imposed. The competent authority shall withhold such public disclosure where it deems that such disclosure would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved.

(4) Where a notice as referred to in sub-articles (1) and (1A) has not been appealed or, where such notice has been appealed within fifteen days of the determination of such appeal, the administrative sanction as contained in the notice or as varied by the decision of the Tribunal shall be due to the competent authority and upon the service of a copy of the notice or the decision as the case may be, by means of a judicial act on the person indicated in the notice or decision, the said notice or decision shall constitute an executive title in favour of the competent authority for all effects and purposes of Title VII of Part I of Book Second of the Code of

Organization and Civil Procedure.

(5) Where the competent authority has disclosed an administrative measure or sanction to the public in terms of sub-article (3), it shall contemporaneously report that fact to ESMA.

(6) The imposition by the competent authority of an administrative sanction in terms of this article shall be without prejudice to any other consequences of the act or omission of the offender under civil or criminal law: Provided that in all cases where the competent authority imposes an administrative sanction consisting of a fine in respect of anything done or omitted to be done by any person and such act or omission also constitutes a criminal offence, no proceedings may be taken or continued against the said person in respect of such criminal offence.

(7) The competent authority shall provide ESMA annually with aggregated information regarding all administrative measures and sanctions imposed in terms of this Act and any applicable regulations made thereunder.