A former top executive at Wizz Air, Andras Sebok, was fined £123,500 by the UK's Financial Conduct Authority (FCA) for engaging in secret share trading. This fine marks the first instance where the FCA has penalized a "Person Discharging Managerial Responsibilities" (PDMR) for trading company shares during restricted periods under the Market Abuse Regulations (MAR). Sebok, who served as Wizz Air's chief supply chain officer, conducted 115 transactions in Wizz Air shares between April 2019 and November 2020, without notifying the company or the regulator, as required by law.
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These trades, totaling over £4 million, were executed during "closed" periods, times when directors and senior managers are prohibited from dealing in their company's shares due to the potential for insider trading or the appearance thereof. The FCA highlighted that Sebok's failure to disclose these trades was a deliberate or reckless breach of MAR's transparency obligations. The closed periods in question were the months leading up to Wizz Air's financial results announcements, a time when such trading is strictly regulated to maintain market integrity and investor confidence.
Sebok's case came to light following an inquiry by the FCA into unusual share trading patterns, leading to his immediate dismissal from Wizz Air once the company was informed of his actions. The penalty was reduced from a potential £176,400 due to Sebok's agreement to settle the case, which qualified him for a 30% discount on the fine. This incident is a significant reminder of the stringent regulations governing share dealings by corporate insiders.
It underscores the importance of transparency and adherence to regulatory notifications, especially for those in positions of trust within publicly listed companies. The repercussions for Sebok serve as a warning to other executives about the consequences of breaching insider trading rules, with the potential for both financial penalties and career damage. The FCA's action reaffirms its commitment to maintaining a fair and transparent marketplace, ensuring that all market participants operate under the same rules to prevent any form of market manipulation or unfair advantage.