FSA £15,000 fine for insider deals

THE former spin doctor for headhunters Whitehead Mann has been fined £15,000 by the Financial Services Authority for twice insider dealing in the company's shares.

Peter Bracken, who left the group after the offences in late 2002, had appealed against the FSA's findings last month.

It is only the second case of an individual being fined under the FSA's new market abuse powers, rather than it having to use the criminal courts to prove insider dealing.

In September 2002, Bracken as group head of communications, learned Whitehead Mann was likely to issue a negative trading statement in the near future. Within an hour he had shorted 5,000 shares at 190p. On the morning of the announcement, he closed his position at 138p, making £2,430 after dealing costs.

In November 2002, he received detailed figures for interim results and learned the chief executive was stepping down. He sold 3,000 shares short at 123p and closed the position at 107p, earning £393.

Andrew Proctor, head of enforcement at the FSA, said: 'Market users should be in no doubt that the FSA will pursue anyone who misuses confidential information to make money.'