The FSA has fined a former Pacific Continental Securities UK stockbroker £24,000 for insider trading.
Alexei Krilov-Harrison released inside information of a major contract between Provexis and an international food company to his clients two days before the formal announcement, when the company's share price was forecast to rise as a result.
On 28 March 2007, Krilov-Harrison made three calls to clients disclosing the upcoming Provexis deal, advising the share price would ‘jump up substantially' when made public and encouraging them to buy Provexis shares.
Two days later, Provexis announced the new contract and its share price increased by 19.81% from the closing price on the previous day.
The FSA found Krilov-Harrison's actions had been deliberate and been motivated by his desire to get a bonus.
Margaret Cole, director of enforcement and financial crime at the FSA, says: "Anyone who uses inside information to encourage their clients to buy shares is abusing their privileged position and cheating other honest investors. This is plainly wrong. Market participants must ensure they do not pass inside information to their clients in these circumstances.
"We are committed to tackling market abuse in its various guises and will not hesitate to take action to ensure that the UK markets operate in a fair, efficient and orderly way for all investors."
The FSA acknowledged a poor regulatory and compliance culture at PCS in determining the amount to fine Krilov-Harrison, as well as his financial circumstances.
He received a 20% discount for settling at an early stage of the investigation
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