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Release Date: 5th February 2019

To access the original FCA document, click here.

Summary

The Financial Conduct Authority (FCA) has fined Paul Stephany, a former fund manager at Newton Investment Management Limited, £32,200 for misconduct related to an Initial Public Offering (IPO) and a placing. Mr Stephany attempted to influence the pricing of shares by contacting other fund managers at competitor firms, urging them to cap their orders at the same price limit as his own. This conduct was found to risk undermining market integrity and the book build process. The FCA determined that Mr Stephany failed to observe proper standards of market conduct and acted without due skill, care, and diligence.

Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, emphasised the importance of fund managers maintaining the integrity of the price formation process in IPOs and placings. He stated that the FCA will take action when such processes are put at risk, as they are crucial for helping companies raise capital in the UK financial markets.

Key Takeaways for Other Firms:

In conclusion, the FCA’s action against Paul Stephany highlights the importance of upholding market integrity and proper conduct standards. Firms and individuals must be vigilant in their practices to ensure they do not compromise the financial markets’ integrity and effectiveness.

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