Africa: The R161-Million SMS - FSCA Slaps World's Second-Largest Fine On Jooste for Steinhoff Insider Trading

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The Financial Sector Conduct Authority (FSCA) has fined former Steinhoff CEO Markus Jooste R121-million for insider trading related to the imminent (at the time) crash in Steinhoff shares.

The FSCA also fined three other individuals for insider trading - they sold their Steinhoff shares in response to a warning received from Markus Jooste. This brings the total of the fines levied to R241-million.

If the three individuals - Dr Gerhardus Diedericks Burger, Marthinus Swiegelaar (who was Jooste's driver), and Jooste's old friend the late Ockie Oosthuizen - do not pay their fines, Jooste is liable for the additional amounts of R38-million plus R18-million, making the SMS he sent to them probably the world's most expensive SMS.

This is the largest penalty imposed by the FSCA for insider trading - the next largest is the R24-million it fined Deutsche Bank in 2019.

This is the second penalty imposed by the FSCA on Steinhoff, or individuals related to Steinhoff. The first was the R1.5-billion imposed on Steinhoff for releasing false and misleading information into the marketplace. However, this sum was remitted to R56-million because the FSCA felt that Steinhoff shareholders would end up bearing the brunt of the fine.

The third penalty...

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