Fidelity’s Stairs Banned From Trading in Hong Kong
Former Fidelity Management & Research Co. portfolio manager George Stairs was banned from dealing in any securities in Hong Kong for two years for selling shares of Chaoda Modern Agriculture Holdings Ltd. (682) using inside information about a placement.
The Hong Kong Market Misconduct Tribunal, which announced the sanction today, didn’t make orders to deprive Stairs of the losses he avoided because the insider trading was executed on behalf of his funds.
The sanction against Stairs compares with the 7.2 million- pound ($11.3 million) fine the U.K.’s Financial Services Authority slapped on U.S. hedge fund Greenlight Capital Inc. and its owner, David Einhorn, in January for insider trading. Like Einhorn, Stairs had argued that he didn’t agree to restrict himself from trading in exchange for material non-public information, and that he thought the information was already public knowledge.
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