Facts
The Swiss Federal Banking Commission (SFBC) conducted an extensive supervisory procedure from March 2007 due to suspicions of unauthorized securities trading activities in connection with the trading of NicStic shares. The investigations were initially directed against Elvestus Marketing & Vertrieb AG and Vencon AG. They were subsequently extended to other companies and the trading of other securities (Libidfit, Hematec, and Bel-Air International shares).
On May 16, 2007, and June 25, 2007, the SFBC appointed an investigating officer to clarify the activities of Hematec Holding AG (Hematec), Herma AG, and alpha swiss capital ag. The investigating officer found on July 24, 2007, that Hematec Holding AG had carried out a total of three capital increases to CHF 8,500,000.
The SFBC found by decision of August 30, 2007, that Hematec Holding AG, Herma AG, and alpha swiss capital ag, as well as X, had engaged in securities trading activities on a commercial basis and thus violated the Stock Exchange Act. It ordered the bank-related bankruptcy of Hematec Holding AG and Herma AG. The NicStic AG, Vencon AG, and alpha swiss capital ag were placed in supervisory liquidation.
The SFBC prohibited X and Y, who had been active for Hematec Holding AG and Herma AG, from exercising a licensable securities trading activity under any designation, either themselves or through third parties, or from advertising such activities in advertisements, prospectuses, circulars, electronic or other media.
Considerations
The Swiss Federal Banking Commission or the Swiss Financial Market Supervisory Authority (FINMASA) monitors compliance with the statutory and regulatory provisions on stock exchanges and securities trading. It takes the necessary measures to enforce them. If it becomes aware of violations of the law or other irregularities, it ensures their elimination and the restoration of the proper state of affairs.
The SFBC has the authority to use the means provided for in the law against institutions (or persons) whose subordination or licensing obligation is disputed. Its powers extend to the dissolution and liquidation of a company that engages in an activity that is not licensable from the outset.
The SFBC found that Hematec Holding AG, Herma AG, and alpha swiss capital ag, as well as X, had engaged in securities trading activities on a commercial basis and thus violated the Stock Exchange Act. The prohibition of conducting securities trading activities and corresponding advertising…