Issue 1172 / 11 August 2022

Financial Conduct Authority

Disclosure of inside information - FCA publishes final notice - 5 August 2022

The FCA has published a final notice with respect to Sir Christopher Gent, a former non-executive Chairman of ConvaTec Group Plc (ConvaTec), and has issued a fine of £80,000 in relation to the unlawful disclosure of inside information. Sir Christopher disclosed inside information to individuals in senior positions at two of ConvaTec’s major shareholders before this information had been announced properly to the market. The disclosures concerned an expected announcement by ConvaTec relating to a revision of its financial guidance and the CEO’s plans for retirement. 

The FCA considered that Sir Christopher acted negligently in disclosing the information, noting that: “[g]iven his training and experience, Sir Christopher should have realised that the information he disclosed was, or may have been, inside information and that it was not within the normal exercise of his employment to disclose it.” There is no evidence that Sir Christopher traded on the information or that he intended to make personal gain, or avoid loss, from making the disclosures. His actions amounted to unlawful disclosure of inside information under Article 10 and in breach of Article 14(c) of the EU Market Abuse Regulation.

FCA final notice: Sir Christopher Gent

Press release

Carrying on regulated activities without authorisation - FCA publishes statement - 10 August 2022

The FCA has published a statement referring guilty plea on 29 July 2022 at Southwark Crown Court of Mr Larry Barreto to two counts of carrying on regulated activities without authorisation. The charges relate to advice provided and arrangements made regarding a series of regulated mortgage contracts between June 2014 and March 2018. Mr Barreto is an unauthorised and prohibited person and as such could not provide regulated financial services.

Mr Barreto is also charged, along with Mr Tassib Hussain, with an offence of committing fraud by false representation. They both deny committing this offence and will face trial on 23 October 2023. Sentencing for the offences of carrying on unauthorised business will take place after the conclusion of the trial for the fraud offence.

The FCA commenced criminal proceedings against Larry Barreto and Tassib Hussain for fraud and unauthorised business in April 2021.

FCA statement: Larry Barreto pleads guilty to carrying on regulated activities without authorisation