Dolmen fined €20,000 over procedure breach
The Central Bank has fined Dolmen Stockbrokers €20,000 for a failing to report a suspicious transaction under market abuse regulations last year.
The Central Bank has also reprimanded the stockbroking firm over the breach, which was uncovered by the Central Bank’s transaction reporting and monitoring team. The bank collects details of stockbroking transactions on a daily basis.
Market abuse rules dictate that where a stockbroking firm suspects a transaction might constitute insider dealing or market manipulation, it must immediately make a suspicious transaction report (STR) to the Central Bank.
This did not occur in this instance.
The Central Bank noted yesterday that, in deciding on penalties in the case, it had taken into account Dolmen’s co-operation in the matter, as well as the ability to reach a settlement early in the sanctions procedure.
The breach of the rules took place in April last year, predating the takeover of Dolmen by US securities firm Cantor Fitzgerald.
Peter Oakes, the Central Bank’s director of enforcement, yesterday described STRs as “one of the Central Bank’s primary intelligence tools in the detection, investigation and ultimately the prevention of market abuse.