James Parker v Financial Services Authority
Upper Tribunal Tax and Chancery decision of Judge Bishopp, Members Douch and Member O'Neill on 17 August 2006.
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MARKET ABUSE senior accountant employed by listed company knowledge of company s difficult relations with major customer and likely effect on turnover and profit knowledge that talks about takeover of company by larger competitor abandoned whether informed or able to conclude that profit warning to market inevitable in near future whether information relevant yes whether information generally available no whether knowledge influenced Applicant s sales of shares and spread betting in advance of announcement leading to dramatic fall in price of company s shares yes whether Applicant s conduct part of an existing strategy amounting to a safe harbour no FSMA ss 118, 119, 122, 123 COMC burden and standard of proof reference dismissed PENALTY principles to be applied in determining amount of financial penalty FSMA s 124 ENF 14 recovery of abusive profit measure of additional penal element penalty reduced to reflect true level of abusive profit but penal element substantially undisturbed.