The Financial Conduct Authority has on 5 February 2019 published the Final Notice in the matter of Paul Stephany, following a contested RDC hearing.
The FCA has imposed a penalty of £32,200 in respect of (non-deliberate) conduct found to be contrary to APER 2 and 3. The APER 3 finding is novel and significant in that it sanctions, for the first time, communications between fund managers in the context of a share placing and an IPO which (the FCA found) were intended to get investors to use their collective power and thereby undermine the proper price formation process.
The decision raises (and does not entirely answer) issues as to the proper limits of buyer communications in such markets, as well as the relationship with competition law principles (the FCA has announced that it is undertaking a linked Competition Act investigation not involving Mr Stephany).
Javan Herberg QC acted for Mr Stephany.
Notice can be viewed here.