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Nokia's 2019 profit warning followed rules, authority probe finds

The regulator examined circumstances surrounding an unusual drop in the company's share price last October.

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File photo of Nokia logo. Image: Pekka Tynell / Yle
Yle News

Finland's Financial Supervisory Authority (Fiva) ruled on Friday that networks giant Nokia did not fail in its duties to publish inside information and followed stock exchange regulations.

Fiva launched a preliminary probe into an unusual drop in Nokia’s share price last autumn.

On October 24, Nokia published third-quarter results that rattled investors. The firm significantly downgraded its guidance targets, said it was having problems with its development of high-speed 5G technology and that it would stop paying dividends in order to invest more heavily in 5G.

That day, the company’s share price plunged by 23 percent on the Helsinki Stock Exchange, and by 27.9 percent on the New York Stock Exchange.

According to the rules, inside information must be disclosed as soon as possible.

Fiva is compelled by law to investigate any market statements that trigger sharp changes in a share’s value.

"Based on the report which is now complete, the Financial Supervisory Authority has no comment to make concerning Nokia and the report does not give rise to further measures," the authority said in a statement issued Friday.

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