The Financial Conduct Authority (FCA) has today fined Kenneth Carver £35,212 for insider dealing.
Carver, a retired accountant, purchased 62,000 shares in Logica Plc (Logica) on the basis of information Ryan Willmott, a family friend, provided to him. Mr Willmott held inside information relating to a potential takeover of Logica through his employment at the group.
On 31 May 2012 CGI Inc publically announced its intention to make a cash acquisition of Logica at a significant premium, which caused the share price to increase by 59.8%. Shortly after the announcement Mr Carver sold all his shares, making a profit of £24,206.70.
Georgina Philippou, acting director of enforcement and market oversight at the FCA said:
"Carver knew that there was a risk of market abuse and traded anyway. He used his own funds to place a trade on Willmott’s behalf and knew that Willmott had a financial incentive to persuade him to trade.
"Market abuse is a serious offence and today’s fine reflects the fact that we will not hesitate in taking action against individuals who act on inside information. Carver’s fine level has been reduced due to his significant cooperation with the FCA investigation.”
Carver gave significant co-operation and provided a detailed account of events at an early stage of the investigation alongside evidence of serious financial hardship to the FCA. Carver also settled at an early stage of the Authority’s investigation. Had it not been for this, the Authority would have imposed a financial penalty of £122,212
Willmott pleaded guilty to insider dealing on 26 February 2015 and on 27 March 2015 was sentenced to 10 months imprisonment.
The FCA has a statutory objective to ensure markets work well and to promote market integrity.
Notes to editors
- The final notice for Kenneth Carver.
- The press release regarding Ryan Willmott.
- On 1 April 2013, the FCA became responsible for the conduct and supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.