C&C fined €90,000 over ‘insider’ lists

Drinks giant C&C has been hit with a €90,000 fine by the Central Bank for failure to maintain and update its so-called ‘insider’ list of advisers.

Every plc is obligated to keep an up-to-date list of advisers and people with prior knowledge of sensitive information due to be released to the stock exchange. These people have access to privileged information they could, in theory, use to trade shares in the firm before key information is formally announced. Insider lists should also mention people who no longer have access to such information.

C&C — chiefly known for its twin cider brands of Bulmers and Magners — was found to have breached the Central Bank’s market abuse regulations in this regard.

The Dublin-headquartered company has its primary share listing on the Iseq, but also has a secondary listing in London. However, as the company is regulated here, it was only a matter brought up by the Central Bank of Ireland and has no bearing on its listing in London.

The matter, dealing with what the Central Bank yesterday referred to as “administrative procedures for the updating of detailed lists of insiders” dates back to late 2008, early 2009 and roughly coincides with C&C’s last big management change.

In a statement, C&C said it acknowledged the Central Bank’s statement. It added that, since 2009, it has implemented “a number of changes” to its practices and procedures. In the meantime, the Central Bank has confirmed the matter is closed.

The Central Bank’s head of regulation Derville Rowland said the proper maintenance and updating of companies’ insider lists was “essential”, “given their key importance as a tool in the prevention and/or detection of market abuse”.

“Insider lists provide an essential record of both the extent of knowledge within an issuer and the identities of those in possession of that knowledge at specific points in time, where inside information is involved,” she said.