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Screenshot of a breaking news alert e-mail from Q2 2017
The FCA has today fined Gavin Breeze £59,557 for engaging in market abuse in the form of insider dealing and has also publicly censured him for improper disclosure.
The FCA found that Mr Breeze, who holds several directorships of private companies and is also a Non-Executive Director of one AIM listed business, attempted to sell his entire 8% shareholding in MoPowered plc while in possession of inside information. Had Mr Breeze been successful, he could have avoided a loss of up to £242,000. He also passed the inside information onto another shareholder. In addition to the fine and censure, the FCA has ordered Mr Breeze to pay restitution amounting to £1,850 plus interest of £259 to the individuals who suffered financial losses as a result of his actions. The individuals who bought Mr Breeze’s shares did so at a higher price than they would have done had the information known to Mr Breeze been public.
Mark Steward, Director of Enforcement and Market Oversight at the FCA said:
Mr Breeze’s misconduct demonstrates the abuse of insider trading is still not well understood or appreciated, even by experienced industry professionals. Mr Breeze has done the right thing in acknowledging his wrong-doing and offering to compensate counterparties, who were entitled to be safe from trading with or in the same market as a prohibited insider, like Mr Breeze.”
Mr Breeze made admissions in interview and proactively cooperated with the FCA’s investigation, for which he received a discount of 15%. In agreeing to settle at the earliest opportunity, Mr Breeze received a further discount of 30%; but for this, the FCA would have imposed a penalty of £85,057.