Financial Conduct Authority
Insider dealing and fraud – FCA commences two separate criminal proceedings – 11 and 16 February 2021
The Financial Conduct Authority (FCA) has commenced a criminal prosecution against two individuals who have both been charged with insider dealing. One of the individuals has also been charged with improperly disclosing inside information, or encouraging another, whilst being an insider, to engage in dealing. The alleged offences took place between 2 May 2016 and 10 June 2016 and involved trading in shares in British Polythene Industries plc (BPI), ahead of an announcement that RPC Group plc was to acquire BPI. During this period, one of the individuals was employed by RPC Group plc, while the other worked as a tenancy support officer. Total profit from the insider dealing was approximately £138,700.
The FCA has also commenced a separate criminal prosecution against two brothers for insider dealing and fraud. The proceedings relate to six alleged offences of insider dealing, contrary to section 52(1) of the Criminal Justice Act 1993 (CJA), and three offences of fraud by false representation, contrary to section 1 of the Fraud Act 2006. The alleged offences took place between July 2016 and December 2017 and involved trading in various stocks, with the total profit from the alleged insider dealing approximately £142,000. The fraud charges relate to three personal loans obtained from Tesco Bank, totalling £95,000. The loans were stated to be for funding home improvements but instead, funded the alleged insider dealing. The case has been sent to Southwark Crown Court for a plea and trial preparation hearing on 16 March 2021.
FCA Press release on insider dealing prosecution
FCA Press release on proceedings against brothers
See also the Banking and Finance section for an item on the launch of a new, independent resolution service to help SMEs resolve disputes with their banks.
