FCA warns Board member of listed co over market abuse

The UK Financial Conduct Authority (FCA) today confirmed that it has issued a warning notice to an individual over market abuse.

The FCA considers that the individual, who was a member of the board of directors of a listed company, negligently engaged in market abuse by unlawfully disclosing inside information contrary to Article 14(c) of the Market Abuse Regulation ((EU) No 596/2014) (MAR).

Specifically, the individual, acting in his capacity as a member of the Board, disclosed inside information, concerning an anticipated announcement relating to the company, to a senior individual at each of two of the company’s major shareholders, otherwise than in the normal exercise of his employment, profession or duties.

The information that the individual disclosed was material to the price formation process for the company’s shares and cannot properly be regarded as part of permitted discussions of a general nature regarding the company’s business and market developments between its management and its shareholders.

The regulator considers that the individual’s preferential disclosure of such information to two major shareholders in advance of disclosure to the wider market constituted unlawful disclosure of inside information within the meaning of Article 10 and in contravention of Article 14(c) of MAR.

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