FCA bans and fines adviser £100,000

The FCA has fined Neil Sedgwick Dwane £100,281 for insider dealing and banned him from working in UK financial services.

In 2022, Dwane worked as an adviser for ITM Power. Because of his role, he knew the details of an announcement ITM planned to make to the market on 27th October. Following that announcement, ITM’s share price fell by around 37%.

The day before the announcement, Dwane used the inside information and sold his own and a family member’s 125,000 shares worth £124,287. He took advantage of the subsequent fall in ITM’s share price to purchase 180,000 shares worth £140,700, gaining £26,575 from the price difference.

The FCA says Dwane "is an experienced financial professional and knew his conduct amounted to insider dealing, abusing his position of trust".

Dwane agreed to resolve the matter and therefore qualified for a 30% stage 1 discount under the FCA’s settlement procedures. Were it not for this discount, the FCA would have imposed a financial penalty of £126,575 plus interest on the £26,575 benefit.  

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.”