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.
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