Former Wizz Air supply chain manager András Sebők was fined £123,500 by the UK’s Financial Conduct Authority (FCA) due to repeated breaches of market abuse regulations. Sebők carried out 115 transactions in airline shares valued at more than £4 million without complying with disclosure obligations and, on several occasions, during prohibited periods.
Details of violations
- Operations in prohibited periods: On 18 occasions, Sebők bought or sold Wizz Air shares within 30 days prior to financial results announcements, violating regulations designed to protect market integrity.
- Lack of transparency: Except on one occasion in August 2020, Sebők did not report his transactions within the required period of three business days, demonstrating knowledge of the rules but deliberate non-compliance.
The FCA informed Wizz Air about Sebők’s activities in September 2021, leading to his dismissal following an internal investigation and his inability to justify his conduct.
Financial context
- Share price evolution: During the period in question, Wizz Air shares fluctuated considerably. They rose initially, fell sharply during the COVID-19 pandemic, and then nearly doubled in value months later.
- Wizz Air reaction: Shortly before sacking Sebők, the airline offered its CEO, József Váradi, a controversial £100 million bonus if the shares reached £120 by 2026. The shares are currently trading at £12.96.
FCA Statements
Steve Smart, executive director of compliance at the FCA, underlined the importance of trust and transparency in the markets. “Executives must report their trades and comply with restrictions to avoid undermining market integrity,” he said.
This case marks only the second fine issued by the FCA since 2016 for breaches relating to the disclosure of personal transactions in listed companies, highlighting the seriousness of the situation and the regulator’s commitment to transparent and fair financial markets.
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