Central bank, AFM told to pay damages

A court in Amsterdam has ordered the central bank and finance sector regulator AFM to pay damages to two convicted insider traders, the Financieele Dagblad reports on Thursday.


The paper bases its claims on what it says is an unpublished court ruling dealing with an insider trading conflict around asset manager Veer Palthe Voute in 2003.
The central bank ordered VPV to sack two senior executives which it suspected of insider trading. The two men were later convicted but, the court said, they should not have been sacked while they were simply under suspicion.
Millions
The court says the central bank and AFM must now pay the duo 40% of the damages they are due for wrongful dismissal. This will run into millions of euros, the paper says.
The paper says the ruling could have an impact on other cases in which the role of the central bank has been called into question. These include the Icesave collapse and the bankruptcies of Van der Hoop bank and stockbrokers Van der Moolen.
The central bank and AFM have declined to comment on the court ruling.

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