Telephone 020 3813 2890 for a free no obligation chat about your regulatory requirements with one of our compliance consultants.

© Compound Growth Limited 2012 - 2018 | Terms of Use

Registered in England and Wales as limited company number 07626537 - Registered Office 120 Pall Mall, London, SW1Y 5EA

We use cookies, if you consent to this use, please continue to browse our site.

Here to help with Regulation and Compliance

Compound Growth

Former Blackrock Manager Admits Two Counts of Insider Dealing

3rd November 2016

Market Abuse: Insider Dealing

A Press Release issued by the Financial Conduct Authority (FCA) yesterday informed that former Blackrock Equity Portfolio Manager, Mark Lyttleton, has admitted to insider dealing.

Yesterday Mr Lyttleton pleaded guilty to two counts of dealing on the basis of insider information that he obtained whilst employed at BlackRock. He is due to be sentenced on 21st December 2016.

As those within the Financial Services Industry will know, the Financial Services and Markets Act 2000 (FSMA 2000) gives the regulator the power to investigate and prosecute insider dealing as defined by the Criminal Justice Act 1993. To date, the FCA and their predecessor, the FSA, have secured 30 convictions that relate insider dealing.

Dealing based on Inside Information

Mr Lyttleton undertook two counts of insider dealing during 2011 that related to two stocks – Encore Oil Plc and Cairn Energy Plc. His position in the Equity Team at Blackrock enabled him to encounter and then act upon inside information - from working on deals concerning the stocks themselves and by being a party to conversations between his colleagues.

Once he had obtained inside information he then used this to inform his buying of shares via an overseas asset manager before any public announcement had been made about the concerned stocks.

Following his guilty plea, the FCA reminded industry participants that as regulator, they have an overarching objective to ensure that relevant markets function well. In particular they work to ensure the integrity of the UK financial system is protected and enhanced and that effective competition in the interests of consumers is promoted. Thus, if any individual has any information about known or suspected market abuse they should call the FCA’s market abuse hotline on 020 7066 4900.

For now, Mr Lyttleton will have to wait until December to find out his fate.

Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.

Market Abuse & Market Abuse Regulation