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Former Blackrock Manager Admits Two Counts of Insider Dealing

3rd November 2016

Market Abuse: Insider Dealing

A Press Release issued by the Financial Conduct Authority (FCA) yesterday informed that former Blackrock Equity Portfolio Manager, Mark Lyttleton, has admitted to insider dealing.

Yesterday Mr Lyttleton pleaded guilty to two counts of dealing on the basis of insider information that he obtained whilst employed at BlackRock. He is due to be sentenced on 21st December 2016.

As those within the Financial Services Industry will know, the Financial Services and Markets Act 2000 (FSMA 2000) gives the regulator the power to investigate and prosecute insider dealing as defined by the Criminal Justice Act 1993. To date, the FCA and their predecessor, the FSA, have secured 30 convictions that relate insider dealing.

Dealing based on Inside Information

Mr Lyttleton undertook two counts of insider dealing during 2011 that related to two stocks – Encore Oil Plc and Cairn Energy Plc. His position in the Equity Team at Blackrock enabled him to encounter and then act upon inside information - from working on deals concerning the stocks themselves and by being a party to conversations between his colleagues.

Once he had obtained inside information he then used this to inform his buying of shares via an overseas asset manager before any public announcement had been made about the concerned stocks.

Following his guilty plea, the FCA reminded industry participants that as regulator, they have an overarching objective to ensure that relevant markets function well. In particular they work to ensure the integrity of the UK financial system is protected and enhanced and that effective competition in the interests of consumers is promoted. Thus, if any individual has any information about known or suspected market abuse they should call the FCA’s market abuse hotline on 020 7066 4900.

For now, Mr Lyttleton will have to wait until December to find out his fate.

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Market Abuse

Market Abuse & Market Abuse Regulation

Market Abuse

Market Abuse Regulation

Purpose of MAR :

The Market Abuse Regulation, in general, is designed to prohibit unauthorised insider dealing, market manipulation and the unlawful disclosure of inside information.

>>See here for MAR Overview<<