FCA has published two final notices and one decision relating to market abuse carried out by a Dubai-based investor, on whom the Financial Services Authority (FSA) imposed a record fine for an individual in 2011. The investor, Rameshkumar Goekna, was introduced by Tariq Carrimjee of Somerset Asset Management to Vandana Parikh, a broker at Schweder Miller & Co, to execute trades in Gazprom and Reliance securities in LSE closing auctions. Goekna asked Parikh various questions, in response to which she provided information that would enable Goekna to manipulate the markets. She did not challenge the reasons for Goekna's questions, and speculated he held an underlying product but did not know this, nor discuss the matter with David Davis, her compliance officer. FCA found:
- Parikh did not act with due skill, care and diligence, in failing to recognise the risks the information she gave to Goekna posed and in not discussing the issue with her compliance officer. It fined her £45,673;
- Parikh made Davis aware of her concerns after a further trade. Davis monitored the account, but did not act on warning signals nor report the trade as suspicious after the event. FCA found he also did not act with due skill, care and diligence. It fined him £70,258, withdrew his significant influence functions and prohibited him from holding those functions in future; and
- Carrimjee, in FCA's view, recklessly assisted Goekna to manipulate the markets, including making the introduction to Parikh when he knew or suspected Goekna's intentions. FCA decided to fine Carrimjee £89,004, withdraw all his individual approvals and ban him. Carrimjee is appealing the decision to the Tribunal.