In order to provide the market with the latest information, the FSMA would like to outline the state of affairs in the investigation of Nyrstar NV.
The Management Committee of the FSMA decided, in September 2019, to task the investigations officer with conducting an administrative investigation of Nyrstar NV regarding its compliance with the obligation to provide information to the market. The investigation focused, in the first instance, on information provided by Nyrstar as regards the scope and modalities of its commercial relationship with Trafigura.
On 29 May 2020, the FSMA announced that the aforesaid investigation was being extended to two additional elements. First, the information published on the expected profit contribution by the Australian smelter in Port Pirie and on the total cost of the project, and second, the company’s solvency and liquidity position at the end of 2018. This extension enabled the FSMA’s investigations officer to take the desired investigation measures on these points as well, in order to assess whether the market had access at all times to the information necessary to form an accurate view of the company’s financial position.
The FSMA’s investigations officer conducted an investigation that involved sending more than 500 questions or requests for documents to various individuals and parties, including, by way of international cooperation, to persons and parties based abroad (Switzerland, France, United Kingdom, etc.).
That investigation made it possible to compile a dossier of more than 12,000 pages of documents and to draft a provisional report of more than 400 pages covering the three elements of the investigation.
In accordance with the procedure provided for in Articles 70 and following of the Law of 2 August 2002 on the supervision of the financial sector and on financial services, the next step in the procedure is to send this provisional report to Nyrstar to enable it to provide its comments.
After examining the comments provided, the investigations officer will finalize the report and submit it to the Management Committee of the FSMA. In accordance with Article 71 of the aforementioned Law of 2 August 2002, the Management Committee may then decide:
- to draw up a notice of charges and send them to the Sanctions Committee
- to close the case
- to accept an agreed settlement.
In the first case, if any of the charges in the notice includes actions that may also constitute a criminal offence, the FSMA will inform the Public Prosecutor.
The FSMA will continue to keep the market informed of developments in this case, within the limits of its obligation of professional secrecy.