Datatec 'victims' to get paid
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Investors who lost out financially due to alleged insider trading in Datatec shares should be able to lodge their claims for compensation within the next couple of weeks.
The Financial Services Board (FSB) says it is ready to invite those who were prejudiced when Deutsche Securities analyst Chris Veegh allegedly passed inside information on to five large institutional clients, to apply for compensation as soon as Deutsche banks the R24m settlement with the FSB.
Deutsche has undertaken to pay the money before the 20th of this month. It reached the settlement without admitting liability in the case, which dates back to April 2000. However, victims will not receive the combined sum of R25m. Administration and legal costs have to be deducted first.
According to FSB Insider Trading Directorate head Rob Barrow the costs come to R1,8m.
It is unclear how many investors lost money as a result of the leak but the JSE Securities Exchange SA has records of the stockbrokers who traded in Datatec stock on the day.
Barrow says an independent claims officer will be appointed to work out how much claimants are entitled to and to adjudicate over any disputes.
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