Norway – FSA Fines for Short Selling

Norway – FSA Fines for Short Selling

On 25 Septmeber 2023, NORFSA issued Cazadores short selling penalty fee decision.

  • NORFSA issued 11 September 2023 decision on Cazadores Investments Limited regarding advance notice of NOK 2,000,000 Flyr shares short selling violation fee and other correspondence.
  • Follows NORFSA May 2023, fined 6 investors for short selling breaches.


  • On 16 November 2022, stock exchange announcement by Flyr said extraordinary general meeting approved capital increase; announced 17 November, that this had been registered.
  • NORFSA found that prior to increased share capital registration, billions of shares were sold, while share capital was only 633,019,667 shares - about half of those traded.
  • Cazadores has confirmed allocation of 224,703,576 shares in private placement, with trade confirmation of 33,127,377 Flyr shares on 16 November 2022, placed on its behalf.
  • NORFSA concluded that 54,034,355 shares were sold before on 17 November 2022, but total sold before publication of Flyr stock exchange announcement was 87,161,732.
  • It received no information that Cazadores owned shares in Flyr at the time of the sale.
  • After 17 November 2022 , stock exchange announcement, share price fell significantly; Cazadores made a profit compared to investors who waited until capital increase was registered.
  • NORFSA found Cazadores violated EU short selling rules, uncovered short selling rules, reporting credit default swaps (SSR) rules in the Norwegian Securities Trading Act.

Next Steps

  • Penalty fee can be appealed up to 3 weeks after receipt; if decision is not appealed, national collection agency will claim for payment immediately after appeal deadline.