FCA issues warning to portfolio manager

FCA issues warning to portfolio manager

The Financial Conduct Authority has issued a warning notice against an unnamed fund manager over allegations he engaged in market abuse

The regulator only said the person was a "partner and portfolio manager" at an investment fund.

According to the notice, between January and May 2017 the person placed large orders for contracts for difference on an inter-dealer trading platform that he did not intend to execute, on the opposite side of the order book to existing smaller orders which he intended to execute.

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The FCA said: "Through the misleading orders the individual falsely represented to the market an intention to buy or sell when his true intention was the opposite.

"The individual’s intention in placing the misleading orders was to facilitate the execution of the genuine orders at a more advantageous price, or on a more timely basis, than he would otherwise have achieved but for the misleading orders."

The FCA said this behaviour amounted to market abuse.

A warning notice is not the final decision of the FCA. The individual now has the right to make representations to the regulatory decisions committee which will decide on the appropriate action and whether to issue a decision notice.