The Financial Services Board is to ask anyone who sold Spicer shares on four separate dates to lodge claims for compensation to be paid from the fine levied on former Spicer chairman Sas du Toit.
Du Toit`s payment of R4.2 million is the largest fine imposed by the directorate to date.
The Insider Trading Directorate announced at the end of August that it was referring for legal action its investigation into trades that took place on 17 December 1999 and between 7 and 9 February last year.
The deals were carried out under the names of the Ithaka Trust and the Marel Trust, although Du Toit was behind the trades.
The directorate, which is governed by the Financial Services Board, is empowered to issue a civil summons for up to three times the profit gained or losses avoided as a result of insider trading.
However, the settlement means that Du Toit will avoid prosecution, since he has admitted liability for compensation, but not wrongdoing.
The Financial Services Board is to use the money from the fine to compensate investors who bought shares on the four days and who were affected by Du Toit`s deals.
Du Toit resigned from the Spicer board shortly before the directorate announced it was referring the case for legal action.
His new task is to focus on UK company MIS.
Spicer, whose financial results are due soon, has warned that while it will report figures stronger than the previous year, it will not meet expectations.
Insider Trading directorate chairman Rob Barrow says the Financial Services Board is to publish advertisements inviting claims.
Related stories:
Spicer share trade referred for legal action
Du Toit bids final farewell to Spicer
Spicer results to disappoint
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