Thread by @Darcon1974

@AIMhonesty @viceroyresearch @fscasouthafrica Congratulations Fraser. For those who would like to read the full order by the #FSCA here is the link to the full version:

fsca.co.za/Enforcement-Ma…

I haven't yet had time to read it.

@AIMhonesty @viceroyresearch @fscasouthafrica On further reading it is evident that #FSCA's decision has been set aside on a jurisdictional technicality and the facts of #FSCA's investigation report are not in dispute.

The following are excerpts from the #FSCA's majority decision:

@AIMhonesty @viceroyresearch @fscasouthafrica "6. The facts that follow by way of introduction are taken from the investigation report
on which the decision of the [#FSCA] is based and are undisputed.

@AIMhonesty @viceroyresearch @fscasouthafrica "7. During December 2017 an entity named Viceroy Research Group (with undisclosed
members or partners) published a document regarding Steinhoff International Holdings N.V. The publication coincided with a material negative drop in the share price of Steinhoff and it was widely ..

@AIMhonesty @viceroyresearch @fscasouthafrica "perceived to have been prescient, and accurate. (There were also other reasons for the drop discussed in a decision of this Tribunal1 but that is merely an aside.) Therefore, when Viceroy announced that it would soon publish a "report" on another South African listed company, ..

@AIMhonesty @viceroyresearch @fscasouthafrica "there was much speculation, expectation, and panic about the identity of the next target. Companies thought to be the subject of Viceroy's next report saw their share prices decline significantly.

@AIMhonesty @viceroyresearch @fscasouthafrica "8. At 09:45:33 on 30 January 2018 Viceroy used its Twitter handle to bring to the
attention of the JSE, the South African Reserve Bank (‘SARB’), Capitec, and financial analysts, traders and finance commentators, as well as to the public at large...

@AIMhonesty @viceroyresearch @fscasouthafrica "... 9 ... a full copy of the publication, titled ‘Capitec: A Wolf in Sheep's Clothing’ ... 10 ... In the Wolf document Viceroy made statements regarding Capitec which formed the basis of the penalty ...

@AIMhonesty @viceroyresearch @fscasouthafrica .. "11 Viceroy ensured immediate onward publication of its allegations through tweeting excerpts of the Wolf document at intervals of approximately every five minutes, sending copies of the Wolf publication to the media, and by appearing on television to discuss the Wolf document

@AIMhonesty @viceroyresearch @fscasouthafrica "12 Media outlets then started reporting on the content of the Wolf document, and Viceroy's statements regarding Capitec went viral on social media platforms such as Twitter. ...

@AIMhonesty @viceroyresearch @fscasouthafrica " 22 Viceroy did not prepare the Wolf report for altruistic reasons, something it freely disclosed in the ‘disclaimer’ ...

@AIMhonesty @viceroyresearch @fscasouthafrica "23 The simplified facts are these: Viceroy had an agreement with a hedge fund, Oasis, under which it, at a monthly retainer of $10 000.00, would prepare reports that would assist Oasis in shorting securities in any chosen company. In addition, ...

@AIMhonesty @viceroyresearch @fscasouthafrica "...Oasis would on a yearly basis pay Viceroy 12.5% of the net profit it made in the particular year on trades based on Viceroy’s reports ...

@AIMhonesty @viceroyresearch @fscasouthafrica "24 The applicants produced the report under the agreement and supplied it to Oasis to
enable Oasis to take positions on Capitec securities. Oasis did, and to be able to profit, Viceroy had to make its bearish report public, which led to panic sales as described. ..."

@AIMhonesty @viceroyresearch @fscasouthafrica Luckily for you the Tribunal has concluded in para 58 that the matter in dispute was civil and personal jurisdiction had not been established over you because you weren't in South Africa so the "58...Authority did not have jurisdiction to impose a penalty on the applicants."