View more on these topics

FCA fines ex-fund manager £32,200 over IPO conduct

Payment-Fine-Currency-Money-700.jpgThe FCA has fined ex-fund manager Paul Stephany £32,200 over conduct around an Initial Public Offering.

The FCA says Stephany, who was a fund manager at Newton Investment Management, on two occasions attempted to “influence [other fund managers] to cap their orders at the same price limit as his own orders” when undertaking a book build for shares to be quoted on public exchanges.

In a statement the FCA says Stephany’s actions could have damaged the market: “The FCA found that Mr Stephany risked undermining the integrity of the market and the book build by trying to use their collective power.

“As a consequence, Mr Stephany failed to observe proper standards of market conduct. He was also found to have acted without due skill, care and diligence by failing to give proper consideration to the risks of engaging in these communications.”

FCA executive director of enforcement and market oversight Mark Steward says: “This matter underscores the importance of fund managers taking care to avoid undermining the proper price formation process in both IPOs and placings.

“These markets play a vital role in helping companies raise capital in the UK’s financial markets and when they are put at risk the FCA will take action.”

The initial public offering in question was for On The Beach Group. The FCA found that in 2015 Stephany contacted fund managers at rival firms in an attempt to encourage them to cap their orders at the same amount as his own.

Stephany’s official role involved preparing an internal research note on the OTB IPO for colleagues at Newton. He was meant to communicate with the person running the book on the IPO to get updates on progress and coordinate orders for the four private equity funds he managed, plus funds of colleagues at Newton.

The FCA’s final notice to Stephany dated 4 February 2019 states: “This was an attempt to get investors to use their collective power and thereby undermine the proper price formation process of the IPO, which risked causing harm to other market participants.”

It notes Stephany behaved in a similar way in relation to a placing by Market Tech Holdings Limited, also in 2015.



Advice firm linked to collapsed DFM goes into liquidation

An advice firm with ties to collapsed discretionary fund manager Greyfriars Asset Management has gone into liquidation. Consumer Wealth based in Gateshead went into voluntary liquidation on 14 January with RSM administering the wind up. It has 13 Financial Ombudsman Service complaints against it dating from 1 April 2018 to the end of December 2018. One […]

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]


FSCS levy hike backlash throws doubt on FCA supervisory control

The FCA may not have taken enough stringent analysis to determine why its incoming £240m levy for the pension and investment intermediation class is necessary, says Pimfa. The adviser trade body has spoken out against the 2019/20 levy proposed this week in the Financial Services Compensation Scheme’s budget. The levy – set to cost advisers […]

Planning now for the residence nil-rate band

Graeme Robb, senior technical manager at Prudential, writes about the residence nil-rate band and the advice opportunities it presents for you when tax year-end planning with your clients. On our Planning Matters hub, we considered a widow, Margaret, and a married couple, John and Anne, for whom the residence nil-rate band (RNRB) is influencing planning […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm