C&C shares fall after Central Bank penalty
Published 05/02/2013 | 04:00
SHARES in C&C fell yesterday, after the company was fined by the Central Bank under market abuse regulations.
The cider maker, which counts Bulmers and Tennents Lager among its brands, was hit with a €90,000 penalty after it failed to maintain a list of company employees who had access to inside information, which they could then trade C&C shares on if they wished.
The bank found that between January 2008 and January 2009, C&C failed to:
• Regularly update its insider list, with the identity of those persons working for C&C who had access to inside information, or no longer had access to inside information, relating to C&C.
• State the date of each and every occasion on which it was updated.
• Maintain a complete list of principal contacts at any other entity acting on behalf of C&C or acting for the account of C&C, who had access to inside information regarding either C&C or the financial instruments of C&C.
The 'insider list' is a key tenet of stock market rules, which govern every public company in the country.
The list is seen as a measure to prevent insider trading by senior executives and other staff with access to market moving information about a company.
The regulator said the penalty reflected the "seriousness of the breaches" and also took into account C&C's co-operation into the investigation.
For its part, C&C said it had "implemented a number of changes to its practice and procedures".
"The Central Bank has confirmed that the matter is now closed," the firm added.
The bank's head of enforcement, Derville Rowland, said the insider list was an "essential record" that had to be maintained at all times.
"The Central Bank's capacity to uncover and effectively investigate suspected cases of market abuse, and thereby to enable appropriate enforcement action when necessary, relies, to an important extent, on issuers . . . keeping insider lists for at least five years after being drawn up or updated," she said.
By the close in Dublin, C&C had fallen 2pc at €4.80.