FCA secures fine of £3.2M for insider dealers

Seven insider dealers have been ordered to pay £3.2 million following a court case bought by the FCA.

According to the FCA, the seven men obtained market sensitive information from investment banks on proposed future takeover bids, which they then used to make spread bets ahead of the announcements. This information enabled the men to make combined profits of over £1.3 million between 2006 and 2008.

Six of the seven men were jailed in 2012, with the remaining individual jailed in March 2013.

The confiscation order, granted at Southwark Crown Court, is a way of ensuring that those convicted of offences are unable to continue to benefit from the proceeds of the crime. Unlike a forfeiture order, a confiscation order is not directed towards particular assets and does not deprive the defendant of title to any property.