U.K. FCA Fines, Bans Financial Adviser Over Insider Dealing

  • Mark Taylor, former adviser at Towry, fined 36,285 pounds
  • Follows two men jailed this week over insider trading

The U.K. Financial Conduct Authority fined a financial adviser for insider trading, the day after a banker was given a record prison sentence for the crime.

Mark Taylor, a former financial adviser at wealth management firm Towry Finance Ltd, was fined 36,285 pounds ($52,300) and banned from the industry for at least two years, the FCA said Friday in a statement. He used inside information about a possible takeover by Towry to buy shares in the target company, making a profit of 3,498 pounds.

The penalty comes a day after a former Deutsche Bank AG corporate broker jailed for 4 1/2 years and his friend and "middleman" in the case was sentenced to 3 1/2 years in the FCA’s largest insider trading investigation. The FCA has convicted 30 individuals over insider dealing since its first prosecution in 2009.

In February 2015 Towry made an offer to acquire wealth management company Ashcourt Rowan Plc. Before any details were public, Towry accidentally sent an e-mail to its employees detailing nonpublic plans of an increased offer before recalling the message. It warned staff not to act on the information.

Taylor bought shares in Ashcourt and sold them for a profit once the deal was public. The following day, he contacted his broker to ask if he could reverse the trade as he worried he may have committed insider dealing. The broker declined and reported the trade to the FCA.

A lawyer for Taylor didn’t immediately respond to a voicemail seeking comment.

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