Information on insider dealing and breaches of the FCA Handbook - May 2022

FOI Release Date of Release:

Reference Case Number: FOI9168

Freedom of Information: Right to know request:

For each calendar year 2016, 2017, 2018, 2019, 2020 & 2021:

I would like to know the total number for each of the following that you have:

Sanctioned, Fined, Reprimanded or Excluded for breaching FCA Handbook Rules, this could possibly be (but not exclusively) be called "Insider-Dealing".

If you are prepared to supply me this Freedom of Information request, can you please break down the bodies that were sanctioned into the following:

  • Market Makers
  • Nomads
  • Brokers
  • Companies
  • Corporate Bodies
  • Individuals

FCA response:

A. Insider Dealing investigations

The FCA opens investigations into suspected insider dealing on a dual track basis (ie criminal under Part V of the Criminal Justice Act 1993 and regulatory under Article 14 of UK Market Abuse Regulation. Where the investigation finds that serious misconduct has occurred and the Code for Crown Prosecutors is met, the FCA will bring criminal proceedings.

There have been two criminal convictions resulting from an investigation opened by the FCA whereby insider-dealing was the primary issue. Both investigations were closed in 2021.

In addition, there are two cases of alleged insider dealing before the criminal courts at present, where the outcome of those cases will be decided by the jury. These cases are in the public domain and further information can be found through the following links:

B. FCA Handbook Rules

We do not categorise enforcement using the criteria which you have specified in your request. However, to be helpful, we have below, provided the total counts for all outcomes, broken down by calendar year. These are outcomes where the investigation is into breaches of statute (Criminal Justice Act 1993, Financial Services & Markets Act 2000 (FSMA), or breaches of the Handbook, including Approved Persons in Appointed Representatives (APER), Fitness and Proper (FIT), Financial Services Act 2021 (FSA), and Principles of Business 1-11.

 

2016

2017

2018

2019

2020

2021

2022 (to date)

 

Total

32

33

22

32

13

15

21

16

Of the above enforcement outcomes, 78 were against individuals.

In relation to the types of bodies which were sanctioned, please note that we do not record firm types in the way you have specified, however, the above outcomes include firms of the following types:

  • Wholesale Brokers
  • Advisers and Intermediaries
  • Principal Trading Firms
  • High-Cost Lenders
  • Wealth Management
  • Asset Management
  • Retail Mortgage Lenders
  • Insurers
  • Retail Banks