Release Date: 30th March 2015
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has fined Kenneth Carver £35,212 for insider dealing. Carver, a retired accountant, bought 62,000 shares in Logica Plc based on inside information from Ryan Willmott, a family friend employed at Logica. Following the public announcement of a takeover bid by CGI Inc., Carver sold the shares, making a profit of £24,206.70. The fine reflects his cooperation and financial hardship, reducing it from an initial £122,212.
Key Points:
- Fined Individual: Kenneth Carver
- Fine Amount: £35,212
- Reason for Fine: Insider dealing based on information from a family friend employed at Logica Plc
Misconduct Details:
- Inside Information: Carver received information from Ryan Willmott about a potential takeover of Logica.
- Trades and Profit: Carver bought 62,000 shares before the takeover announcement and sold them after the share price increased by 59.8%, making a profit of £24,206.70.
- Mitigating Factors: Carver cooperated significantly with the FCA’s investigation and provided evidence of financial hardship, which reduced his fine.
FCA’s Position:
Georgina Philippou, acting director of enforcement and market oversight, emphasised that market abuse is a serious offence. The FCA’s actions demonstrate their commitment to taking swift action against individuals who engage in insider dealing to protect market integrity.
Key Takeaways for Other Firms:
- Avoid Insider Trading: Refrain from trading based on non-public, material information to maintain market integrity and avoid severe penalties.
- Cooperation with Regulators: Cooperation with regulatory investigations can mitigate penalties, but does not absolve individuals from misconduct.
- Ethical Trading Practices: Ensure all trades are based on publicly available information to avoid conflicts of interest and legal repercussions.
Conclusion:
This case underscores the FCA’s commitment to ensuring fair and transparent markets. Firms and individuals must adhere to ethical trading practices and avoid using inside information for personal gain to maintain market integrity and avoid significant penalties.
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