FCA Bans & Fines Financial Advisor £100,281 for Insider Dealing

The Financial Conduct Authority (FCA) has banned and fined financial advisor Neil Sedgwick Dwane £100,281 for insider dealing, following misconduct that breached market integrity and professional trust.

In 2022, Mr Dwane, acting as an advisor for ITM Power Plc (ITM), had access to confidential market-sensitive information concerning an upcoming company announcement scheduled for 27 October. The announcement triggered a 37% drop in ITM’s share price.

The day before the announcement, Mr Dwane used this inside information to sell 125,000 shares owned by himself and a family member, valued at £124,287. After the share price fell, he repurchased 180,000 shares worth £140,700, securing an illicit gain of £26,575 from the price difference.

Mr Dwane failed to obtain the required internal approval from ITM before trading, despite being aware that his actions constituted insider dealing. As an experienced financial professional, his behaviour represented a clear abuse of trust and breach of market conduct standards.

Commenting on the case, Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, said:

As an experienced financial professional, Mr Dwane’s dishonesty and greed fell way short of the standards we expect. Trading on inside information while in a position of trust rigs the system and undermines the integrity of the market.

The FCA confirmed that Mr Dwane agreed to settle the matter early, qualifying for a 30% Stage 1 discount under the regulator’s settlement procedures. Without the discount, the total penalty would have amounted to £126,575 plus interest on the £26,575 profit gained.

This enforcement action highlights the FCA’s commitment to tackling market abuse and financial crime as part of its five-year strategy to uphold fairness, transparency and integrity across the UK financial sector.

Read the press release here.