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FSB’s DMA refers Deetlefs case to enforcement

FSB’s DMA refers Deetlefs case to enforcement
24-11-14 / Staff Writer

FSB’s DMA refers Deetlefs case to enforcement

Pretoria - The DMA (Directorate of Market Abuse) referred a case against Deetlefs (Mr David Deetlefs) to the Enforcement Committee of the Financial Services Board. The referral relates to a contravention of section 78 (1) (a) of the Financial Markets Act, No 19 of 2012, in that on 26 November 2013, whilst in possession of non-public, price-sensitive information in respect of Huge Group Limited, Deetlefs purchased 47 "174 Huge shares prior to the company publishing an announcement on the SENS (Stock Exchange News Service) on 27 November 2013, regarding an expected increase in the company" earnings for the financial year ending 28 February 2014.

The DMA has settled the case with Deetlefs - The DMA took a number of mitigating circumstances into account when reaching the settlement. These mitigating factors include the fact that, the contravention occurred as a result of a bona fide-oversight on the part of Deetlefs, the purchase of the relevant shares constituted the fulfilment of a historic commitment by Deetlefs to purchase 47-174 Huge shares.

The purchase of the Huge shares, says the FSB, was not aimed at speculating in the Huge shares but arose as result of an unclaimed bonus, and therefore Deetlefs did not benefit from the purchase of the Huge shares. The financial regulator says Deetlefs did not dispose of any Huge shares subsequent to the publication of the SENS announcement and currently, still holds the Huge shares. He fully cooperated with the FSB during the investigation and enforcement process and displayed sincere remorse and intention to comply with FSB administered legislation. He has also not been found to have previously contravened any other legislation administered by the FSB

An agreed penalty of R 14-152, which is two times the deemed unrealised profit was imposed on Deetlefs and he further agreed to pay the costs of the investigation.

The order is available on the FSB website at www.fsb.co.za

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