FSA fines Credit Suisse salesman £20,000
The Financial Services Authority (FSA) has fined an equity salesman at Swiss bank Credit Suisse First Boston (Europe) £20,000 for inappropriate conduct and failing to exercise due skill, care and diligence.
The UK regulator said that in May 2005, Sean Pignatelli, a US equity salesman at CSFB, received an analyst's email concerning Boston Scientific Corporation (BSX). The email was worded in such a way as to appear that it might have contained inside information about BSX's prospects, but did in fact not contain inside information, according to the FSA.
Pignatelli did not discuss the email with his senior managers or compliance department, as was required, and embarked on a series of calls to clients passing on the information.
During these calls, Pignatelli used language giving the impression that the email did indeed contain inside information.
Impact
On passing judgement, Sally Dewar, FSA director of markets, said: "This case demonstrates the importance we attach to market participants giving due care and attention to the impact on the quality of markets of the information they disseminate."
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 print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Credit spread risk: the cryptic peril on bank balance sheets
Some bankers fear EU regulatory push on CSRBB has done little to improve risk management
Credit spread risk approach differs among EU banks, survey finds
KPMG survey of more than 90 banks reveals disagreement on how to treat liabilities and loans
Bowman’s Fed may limp on by after cuts
New vice-chair seeks efficiency, but staff clear-out could hamper functions, say former regulators
Review of 2025: It’s the end of the world, and it feels fine
Markets proved resilient as Trump redefined US policies – but questions are piling up about 2026 and beyond
Hong Kong derivatives regime could drive more offshore booking
Industry warns new capital requirements for securities firms are higher than other jurisdictions
Will Iosco’s guidance solve pre-hedging puzzle?
Buy-siders doubt consent requirement will remove long-standing concerns
Responsible AI is about payoffs as much as principles
How one firm cut loan processing times and improved fraud detection without compromising on governance
Could one-off loan losses at US regional banks become systemic?
Investors bet Zions, Western Alliance are isolated problems, but credit risk managers are nervous