The Financial Conduct Authority (FCA) has fined a former Wizz Air executive for secretly trading more than £4 million of airline shares in a closed period ahead of the airline’s financial results.
Former Chief Supply Chain Officer Andras Sebok was fined £123,500 after the FCA found he traded company shares when he wasn’t permitted to and failed to disclose them.
The FCA concluded he ‘committed the breaches deliberately or recklessly’.
Wizz Air said in 2021 it had sacked Sebok with immediate effect after it found out about the trading from the FCA, The Times reports.
This week, the FCA said Sebok traded Wizz Air shares in the 30 days leading up to the firm’s financial results announcements, a ‘closed’ period subject to trading restrictions to protect the integrity of the market.
The Times reports the 52-year-old made 115 trades. It said: “These trades were worth £4.15 million and ultimately resulted in Sebok disposing of his entire holding in Wizz Air shares.
“The former executive carried out the trades in his capacity as a so-called person discharging managerial responsibility, or PDMR, a term under market rules covering directors and executives with decision-making powers and who have access to inside information.”
This is the first time the FCA has fined a PDMR for trading company shares during closed periods. The original fine had been set at £176,400, but his agreement to settle the matter meant he qualified for a 30% discount on his penalty, The Times added.
As a result of Sebok’s failure to notify Wizz Air of the trades, the company was unable to properly announce the transactions to the market.
