FSA fines hedge fund manager for market abuse

Losses & Lawsuits

LONDON - A former portfolio manager for a UK hedge fund has agreed to pay the Financial Services Authority a £52,500 fine for using insider information to purchase bonds. Steven Harrison worked for Moore Credit Fund and admitted receiving information on September 28, 2006 regarding Credit Suisse's refinancing plans for French plastics firm Rhodia SA.

Harrison said he failed to recognise the information at the time, but the same day he instructed a colleague to buy two million Rhodia 10.5% bonds due in 2010, that day.

The FSA says the use of the insider information was not deliberate and Harrison did not profit by it.

When Rhodia called in some of its debts, including the bonds, on October 5, 2006, Moore Credit made a EUR44,000 profit. In addition to the fine, Harrison has agreed not to act as a trader or fund manager for the next twelve months.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here