MARKET MANIPULATION - In the case of Grande Stevens and Others v. Italy
the European Court of Human Rights held that persons responsible for market
manipulation ought not to have been deprived of a public hearing or prosecuted
twice for the same offence. The case concerned the applicants’ appeal
against the administrative penalty imposed on them by the Italian Companies and
Stock Exchange Commission (hereafter “Consob2”) and the criminal proceedings to
which they are currently subject after having been accused of market
manipulation in the context of a financial operation involving the car
manufacturer FIAT. According to the Court, although the procedure before Consob
had not fully satisfied the requirements of fairness and impartiality, the
applicants had nonetheless benefited from subsequent review by a judicial body
with full jurisdiction. However, the latter court had not held a public
hearing, which would have been necessary in this case. For his part, Mr Grande
Stevens had been informed in good time of the accusation against him and had
had adequate time to prepare his own defence or to be represented by a lawyer
of his own choosing. Moreover, although they were severe, the sanctions imposed on
the applicants pursued an aim that was in the general interest – namely
guaranteeing the integrity of the financial markets and maintaining public
confidence in the security
of transactions – and did not appear disproportionate to the conduct with which
they were charged.
However, the new criminal proceedings against Mr Gabietti and Mr Grande Stevens
concerned offences involving identical facts to those for which they had been
finally convicted, and ought consequently to be closed as rapidly as possible.
