FSA hands out £33,000 fines for insider trading

The Financial Services Authority has fined an equity analyst, formerly at Evolution, the stockbroker, and a former finance director of I Feel Good, the Aim-traded publisher of Viz, for insider trading.
Andrew Procter, director of enforcement at the FSA, said: "Selective dissemination of confidential information and its misuse by market participants will not be tolerated by the FSA."
It has now fined six individuals this year for market abuse but this is the first time the FSA has fined individuals for abusive dissemination of information.
The FSA fined Robin Hutchings, at the time an equity analyst at Evolution Beeson Gregory, £18,000 for buying shares for his own use during April 2003 in I Feel Good after speaking with Jason Smith, a friend and ex-colleague who was also IFG's company secretary and finance director.
Mr Smith was privy to takeover discussions between Dennis Publishing and IFG. He confirmed to Mr Hutchings that IFG had accepted a bid from Dennis before it was made known to the market in May. Mr Smith was fined £15,000 by the FSA.
Mr Procter said: "This action demonstrates that we view equally seriously the activities of those who pass on information. This action should concentrate the minds of all those who handle relevant information on their responsibilities."
Mr Hutchings' fine is the second biggest levied against an individual for market abuse. The FSA said if he had not co-operated with the FSA by agreeing to settle the matter the fine would have been "substantially larger".
The FSA said Mr Hutchings did not consult Evolution's compliance department about any of his purchases "although he was aware that he was in possession of price-sensitive information, and deliberately staggered his share purchases to avoid detection".
Evolution said yesterday: "We can confirm that Mr Hutchings worked at the company from November 21 2002 to December 3 2003. The matter is one personal to Mr Hutchings who has now left
the company. Evolution has provided full assistance to the FSA's investigation of this matter."
Last month, Evolution was fined £500,000 by the FSA for market distortion after it sold short [sold shares it did not own] equivalent to 2.5 times the shares available in Room Service, an Aim-traded cash shell. The fine was the second biggest levied on a company by the FSA for market abuse.
The FSA also fined Christopher Potts, Evolution's head of marketmaking, £75,000 - its highest fine against an individual for market abuse. Mr Potts has since left Evolution.