FSMT MARKET ABUSE – senior accountant employed by listed company – knowledge of company’s difficult relations with major customer and likely effect on turnover and profit – knowledge that talks about takeover of company by larger competitor abandoned – whether informed or able to conclude that profit warning to market inevitable in near future – whether information relevant – yes – whether information generally available – no – whether knowledge influenced Applicant’s sales of shares and spread betting in advance of announcement leading to dramatic fall in price of company’s shares -yes – whether Applicant’s conduct part of an existing strategy amounting to a safe harbour – no – FSMA ss 118, 119, 122, 123 – COMC- burden and standard of proof- reference dismissed
PENALTY – principles to be applied in determining amount of financial penalty – FSMA s 124 – ENF 14 – recovery of abusive profit – measure of additional penal element – penalty reduced to reflect true level of abusive profit but penal element substantially undisturbed
Citations:
[2006] UKFSM FSM037
Links:
Financial Services
Updated: 15 July 2022; Ref: scu.268212