The Financial Conduct Authority (FCA) has fined Neil Sedgwick Dwane £100,281 for insider dealing and banned him from working for UK financial services.
Working as an adviser for ITM Power Plc (ITM), Dwane knew details of an announcement the company planned to make to the market on 27 October 2022 which resulted in a 37% fall in ITM share price.
The day before the announcement, he used this inside information and sold his own and a family member’s 125,000 shares worth £124,287. He then took advantage of the share price drop and purchased 180,000 shares worth £140,700, profiting £26,575 from the price difference.
As an experienced financial professional, the regulator said Dwane knew his conduct amounted to insider dealing and that he was required to obtain ITM’s permission before dealing in its shares, but failed to do so.
Behind the Headlines: Understanding the FCA fine process
He agreed to resolve this matter and qualified for a 30% (stage 1) discount under the FCA’s settlement procedures. Without this discount, the regulator would have imposed a financial penalty of £126,575 plus interest on the £26,575 benefit.
“Dwane’s dishonesty and greed fell way short of the standards we expect,” said Steve Smart, executive director of enforcement and market oversight at the FCA.
“Trading in inside information while in a position of trust rigs the system and undermines the integrity of the market.”
