FCA fines the Chair of a listed company for market abuse

On 5 August 2022, the FCA issued a final notice against Sir Christopher Gent, the former non-executive Chair of ConvaTec Group Plc (the Company), fining him £80,000 for committing market abuse by unlawfully disclosing inside information.

The Final Notice is the most important statement by the Financial Conduct Authority (FCA) as to how the UK Market Abuse Regulation (MAR) and its predecessor, the EU Market Abuse Regulation (EU MAR), should be applied since the Upper Tribunal’s decision in Hannam.

Of most significance are the FCA’s conclusions on when information amounts to inside information (where the FCA confirms Hannam), how to interpret the obligation to disclose inside information as soon as possible and when it is appropriate to disclose inside information selectively.