Paul Davidson and Ashley Tatham v The Financial Services Authority: FIN/2003/0016 FIN/2003/0021
Upper Tribunal Tax and Chancery decision of Judge Brice, Member Chapman and Member Parsloe on 16 May 2006.
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MARKET ABUSE – company to be listed on the Alternative Investment Market – take up of shares in the placing slow – the idea emerged that if a spread bet were placed then the spread betting firm would hedge the bet through a contract for differences with a counterparty who would then hedge the contract for differences by purchasing shares in the placing thus completing the placing – whether either or both of the Applicants engaged in market abuse – no – whether penalties should have been imposed – no – whether the amounts of the penalties were appropriate - no – whether Mr Tatham was in breach of Principles 2 and 3 – no – references determined in favour of the Applicants – FSMA 2000 Ss 64, 66, 118 and 123.