Release Date: 13th May 2016
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) fined Mark Taylor, a financial adviser, £36,285 and banned him for at least two years for engaging in market abuse. Mr Taylor, who worked at Towry Limited, was found guilty of insider dealing after he purchased shares in Ashcourt Rowan plc based on non-public information accidentally shared with him at Towry.
Summary of the Incident:
- Role and Employment: Mark Taylor was an experienced financial adviser at Towry Limited for 2.5 years.
- Inside Information: In March 2015, Towry staff were accidentally informed about an increased offer for Ashcourt Rowan shares.
- Illegal Trade: Mr Taylor used this inside information to purchase 5,582 shares of Ashcourt Rowan, profiting £3,498 after selling them post-public announcement.
- Consequences: After realising the potential illegality, Mr Taylor’s broker reported the suspicious trade to the FCA. Mr Taylor was dismissed for gross misconduct and admitted his actions early in the investigation.
Key Takeaways for Other Firms:
- Strict Compliance with Insider Information: Ensure all staff understand the implications of insider trading and adhere strictly to guidelines on handling non-public information.
- Robust Internal Controls: Implement and regularly review internal communication controls to prevent accidental dissemination of sensitive information.
- Prompt Reporting: Encourage brokers and staff to report any suspicious activities immediately to the relevant authorities to maintain market integrity.
- Employee Training: Regularly train employees on market abuse regulations and the severe consequences of violations.
Conclusion:
The FCA’s action against Mark Taylor highlights the severe repercussions of insider dealing, even in seemingly minor cases. Firms must enforce strict compliance and reporting measures to prevent similar incidents, ensuring the integrity of the financial markets.
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