FSA v Winterflood (market abuse)
Mar 09
[2009] FSMT 2009 / 066
The FSA imposed a penalty of £4m for market abuse on a market maker for an AIM shares which were subject to a share ramping scheme by a broker. It was not alleged that the market maker knew of the unlawful purpose of the broker. The case was referred to the Financial Services and Markets Tribunal on the issue whether, in the case of behaviour alleged to constitute price positioning or market distortion, it was necessary for the FSA to prove that there was an actuating purpose to such effect. The tribunal dismissed the reference but permission has been granted to take the case to the Court of Appeal.