FSA has censured a director and a vice-president then of Dresdner Kleinwort for market abuse on a bond issue. Darren Morton and Christopher Parry were portfolio managers of a vehicle which had US $65 million of a Barclays’ floating rate note issue in it. Mr Morton received inside information about a new FRN issue, which was on better terms than the previous one, and told Mr Parry. The two agreed to sell the portfolio’s entire holding in the previous issue to two separate counterparties, who did not know about the new issue. Once the issue was announced, the counterparties made mark-to-market losses of US $66,000 and complained. Mr Morton and Mr Parry said they thought they were acting in accordance with market practice in behaving as they did but FSA said it was not reasonable to think that. But the leniency of its action reflected the fact market participants may previously not have considered this area properly and there had been no guidance for the sector. FSA said future offenders would be likely to suffer more severe sanctions.