The Zurich stock exchange’s regulatory unit said it’s investigating Liechtensteinische Landesbank AG (LLB) for possibly breaching rules on the disclosure of management transactions.
“The investigation will examine whether Liechtensteinische Landesbank AG instructed the persons subject to reporting obligations about the duty to disclose management transactions in good time and in sufficient detail,” SIX Exchange Regulation said in an e-mailed statement today. “Investigatory proceedings will continue for an indefinite period.”
Cyrill Sele, a spokesman for Vaduz, Liechtenstein-based LLB, declined to comment on the probe in a phone conversation with Bloomberg News. SIX Exchange Regulation, which has already finished a preliminary inquiry, said it plans to announce the findings of the main investigation, according to the statement. Calls to SIX Group weren’t answered outside normal working hours today.
SIX Exchange Regulation, an autonomous unit of SIX Group, is responsible for enforcing the regulation of stock exchange issuers and participants. The unit, and SIX’s Sanctions Commission, can reprimand companies, exclude them from trading and impose fines for offenses including the breach of rules on management transactions.
A company that lists securities on the Swiss exchange is required to disclose transactions by members of their board of directors and executive committee in equities, convertible and purchase rights on the company’s shares and financial instruments priced relative to securities.
LLB’s managers or directors made transactions of almost 200,000 Swiss francs ($223,000) in May, according to notices published on the regulator’s website. Other transactions occurred in May 2012 and in May and June 2011, the notices show.
LLB is the oldest bank in the principality of Liechtenstein. It avoided prosecution by the U.S. government earlier this year after agreeing to pay $23.8 million and admitting it helped American clients evade taxes.
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