The Sanction Commission of SIX Swiss Exchange Ltd has fined CI Com SA owing to a violation of the requirements laid down in the Listing Rules. CI Com SA's internal organisation was found to be inadequate in the preparation of its semi-annual IFRS financial statements for 2008.
CI Com SA, which is listed according to the Main Standard on SIX Swiss Exchange, violated the financial reporting provisions of the Listing Rules in its semi-annual IFRS financial statements for 2008.
The SIX Swiss Exchange Sanction Commission (formerly the Disciplinary Commission) previously fined CI Com SA in 2006, owing to a violation of several requirements of the Listing Rules relating to reporting obligations, corporate governance and financial reporting. It was established already then that the company did not have the organisation necessary to prevent breaches of stock exchange rules.
In the present case, the valuation of the main asset in the 2008 interim financial statements failed to comply with the requirements of IAS 39 "Financial Instruments: Recognition and Measurement". The Sanction Commission concluded that the effects of this improper valuation were immaterial. It nonetheless fined the company because the valuation of the main asset was not documented, because of the organisational shortcomings that had been complained about in the past, as well as the contradictory statements made by CI Com SA in the course of SIX Exchange Regulation's investigations. Given the gravity of the violation, the degree of fault and the fact that CI Com SA has had sanctions imposed upon it within the past three years, the Sanction Commission imposed a fine of CHF 10,000 on the company.
Periodic financial reporting in compliance with applicable financial reporting regulations is part of the information that contributes to a functioning market, as required by the Swiss Stock Exchange Act and the Listing Rules. One of the tasks of SIX Exchange Regulation is to ensure that the transparency rules imposed on issuers by the Regulatory Board are enforced.
Information on financial reporting regulations can be found at: http://www.six-exchange-regulation.com/duties/financial_reporting/provisions_en.html
Earlier sanction decisions in connection with financial reporting can be found at: http://www.six-exchange-regulation.com/enforcement/sanction_decisions/financial_reporting_en.html