The FCA has fined András Sebők, former chief supply chain officer at Wizz Air Holdings plc (Wizz Air), £123,500 for trading company shares when he wasn’t permitted to, and failing to disclose his trades.

Mr Sebők carried out the trades in his capacity as a person discharging managerial responsibility (PDMR) at Wizz Air.

It was found that Mr Sebők traded Wizz Air shares in the restricted 30-day period leading up to the firm’s financial results announcements. Mr Sebők also failed to notify the FCA and Wizz Air of his personal trades in the company’s shares within the required 3 business days.

This is the first time the FCA has fined a PDMR for trading company shares during closed periods under Article 19(11) of the Market Abuse Regulations (MAR), and the second time the FCA has fined a PDMR for failing to disclose personal trades under Article 19(1) MAR.

Between April 2019 and November 2020, Mr Sebők made 115 trades in Wizz Air shares in relation to which there were contraventions of Article 19 MAR. Those trades were worth over £4m.

The restrictions on PDMRs trading during their company’s closed periods, and transparency on their trades, are key safeguards against market abuse. PDMRs are senior executives in a position of trust with decision-making powers over their employer’s business, they risk undermining that position if they trade in the company’s shares during closed periods or fail to appropriately disclose their trading in the company’s shares. For these reasons, the FCA continues to increase its capabilities to detect misconduct in this area.

Steve Smart, executive director of enforcement and market oversight, said: ‘Trust and transparency are vital to keeping our markets clean. Senior executives, like Mr Sebők, must report their trading and comply with the restrictions on trading during closed periods or they risk undermining the integrity of the market.’

On account of Mr Sebők’s agreement to settle the matter, he qualified for a 30% discount on his penalty, resulting in a £123,500 fine.