Financial Conduct Authority  

FCA fines director £45k over personal trades

FCA fines director £45k over personal trades

The City-watchdog has fined a former managing director £45,000 for failing to notify the regulator of personal trades.

Kevin Gorman, who previously ran a division of listed company Braemar Shipping Services, sold more than £70,000 worth of shares on three occasions between August 2016 and January 2017, without informing the Financial Conduct Authority.

Mr Gorman was a ‘person discharging managerial responsibility’ at the firm and under Market Abuse Regulations, such persons are required to notify the FCA and the issuer of every transaction conducted on their own account above a certain threshold within three business days.

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Such regulations cover transactions in the issuer’s shares, debt instruments, derivatives or other linked financial instruments.

But Mr Gorman had sold £71,235 worth of shares and failed to notify the watchdog or the firm. The FCA did not find that Mr Gorman traded whilst in possession of any confidential inside information, however.

The FCA stated that as Mr Gorman agreed to resolve the matter he qualified for a 30 per cent discount on his penalty, resulting in a £45,000 fine.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Transparency of trading by directors and other responsible officers is a key element of market integrity and helps to police the market against illegal insider trading. 

“Directors of listed companies, like Mr Gorman, must ensure they report their trading on time or risk undermining market integrity.”

The FCA said senior managers notifying the FCA and issuers of their share transactions in a prompt manner was integral to transparency for market participants and maintaining confidence in the markets, as well as the FCA’s effective supervision of the markets.

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