A former senior executive at budget airline Wizz Air has been slapped with a £123,500 fine by the Financial Conduct Authority (FCA) for unauthorised trading of company shares valued at more than £4 million.
Andras Sebok, who served as the airline’s chief supply chain officer, conducted 115 trades during restricted periods leading up to financial results announcements. The FCA determined that Sebok’s actions were either deliberate or reckless, marking their first sanction of this nature against a person in a managerial position.
The regulatory breach occurred when Sebok traded during ‘closed’ periods – the 30 days preceding financial results announcements – when such transactions are prohibited to maintain market integrity. The 52-year-old executive failed to notify both the regulator and Wizz Air of his personal trades within the mandatory three-business-day window.
Whilst the FCA found no evidence of insider trading, the significance of the breach lies in Sebok’s position as a person discharging managerial responsibility (PDMR). His role granted him regular access to confidential information and attendance at board meetings, making his compliance with trading regulations particularly crucial.
The FTSE 250-listed airline terminated Sebok’s employment with immediate effect in 2021 upon learning of the dealings from the FCA. The fine, initially set at £176,400, was reduced by 30 per cent to £123,500 following Sebok’s agreement to settle the matter.
Steve Smart, the FCA’s co-head of enforcement and market oversight, emphasised the importance of trust and transparency in maintaining market integrity. The regulator has signalled its intention to enhance its capabilities in detecting similar misconduct, serving as a stark warning to senior executives about the consequences of breaching trading regulations.
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