STOCKHOLM The Swedish stock exchange has fined measurement technology firm Hexagon 6.2 million Swedish crowns ($706,000) for breaching its rules by delaying when it announced the arrest of its chief executive last year.
Hexagon CEO Ola Rollen was arrested on Oct. 26, 2016 over alleged insider trading in Norway concerning deals not related to the Swedish firm. Rollen, who denies the allegations, was charged earlier this month.
Hexagon issued a statement regarding the arrest only on Oct. 31, citing a lack of clear information regarding Rollen’s detention until that point.
But the Nasdaq Stockholm exchange said in a statement on Thursday that the information received by the company had been specific enough to allow it to inform markets earlier.
The exchange’s disciplinary committee also criticized Hexagon for not informing markets in its statement of how it intended to address the situation, though also it also cited mitigating circumstances.
“Given the surprising nature and severity of the situation in which Hexagon found itself and the challenge of applying the new Rule Book … the Disciplinary Committee determined that the sanction should not exceed a fine of two annual fees,” it said.
Companies pay an annual fee to be listed on the exchange.
Rollen, one of Sweden’s most successful chief executives, has been charged over insider trading in connection with an investment in Norwegian company Next Biometrics ASA in October 2015. He has said he will stay on as Hexagon CEO.
($1 = 8.7913 Swedish crowns)
(Reporting by Niklas Pollard; Editing by Simon Johnson/Keith Weir)