{"id":590,"date":"2009-10-21T20:56:21","date_gmt":"2009-10-21T20:56:21","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2009\/10\/two_dresdner_kleinwort_traders"},"modified":"2022-03-09T15:57:25","modified_gmt":"2022-03-09T21:57:25","slug":"two-dresdner-kleinwort-traders","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/","title":{"rendered":"Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA"},"content":{"rendered":"<p>\t\t\t\tTwo Dresdner Kleinwort traders were censured for market abuse by the United Kingdom&#8217;s Financial Services Authority.  According to the FSA, Darren Morton had access to inside information about a possible new issue of Barclays floating-rate bonds in March 2007 that would offer more favorable terms than the last issue. <\/p>\n<p>The FSA says that Morton shared what he knew with trader Christopher Perry and the two men sold the whole holding of the previous issue held by K2, a Dresdner investment vehicle with a portfolio containing $65 million of Barclay&#8217;s FRNs. That same day, a new issue was announced, and counterparties that bought the bonds from K2 lost some $66,000. <\/p>\n<p>Rather than accept the FSA&#8217;s offer to settle and receive a fine and\/or penalty at a lower amount, the two men took their case to the FSA&#8217;s tribunal authority. The regulatory committee found that the two men did not realize that they were engaging in market abuse.<\/p>\n<p>While the two men were censured, they were not fined and their right to work was not challenged.  The FSA cited a number of  factors to explain the sanction chosen:<\/p>\n<p>\u2022\tThe two did not make money personally from the trade.<br \/>\n\u2022\tThey have undergone market abuse training.<br \/>\n\u2022\tNo one gave them proper guidance.<br \/>\n\u2022\tTheir compliance and disciplinary records are clean.<\/p>\n<p>FSA enforcement director Margaret Cole, however, noted that <a href=\"https:\/\/www.investorlawyers.com\/broker-misconduct.html\">insider dealing <\/a>is cheating regardless of the market. She promised that future offenders will be slapped with harsher sanctions.<\/p>\n<p><strong>Related Web Resources:<\/strong><br \/>\n<a href=\"https:\/\/www.guardian.co.uk\/business\/2009\/oct\/07\/viewpoint-fsa-osborne-itv-marks\" target=\"_blank\" rel=\"noopener noreferrer\">The FSA and the intriguing case of Dresdner Kleinwort bond managers<\/a>, Guardian.co.UK, October 7, 2009<br \/>\n<a href=\"https:\/\/www.marketwatch.com\/story\/fsa-censures-dresdner-traders-over-market-abuse-2009-10-07-627560\" target=\"_blank\" rel=\"noopener noreferrer\">SA censures Dresdner traders over market abuse<\/a>, MarketWatch, October 7, 2009<br \/>\nFinancial Services Authority<br \/>\n <a href=\"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/#more-590\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two Dresdner Kleinwort traders were censured for market abuse by the United Kingdom&#8217;s Financial Services Authority. According to the FSA, Darren Morton had access to inside information about a possible new issue of Barclays floating-rate bonds in March 2007 that would offer more favorable terms than the last issue. The FSA says that Morton shared [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3756,3904,3811],"tags":[],"class_list":["post-590","post","type-post","status-publish","format-standard","hentry","category-barclays-capital","category-dresdner-kleinwort-securities","category-insider-trading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA &#8212; Investor Lawyers Blog &#8212; October 21, 2009<\/title>\n<meta name=\"description\" content=\"Two Dresdner Kleinwort traders were censured for market abuse by the United Kingdom&#039;s Financial Services Authority. According to the FSA, Darren Morton &#8212; October 21, 2009\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA &#8212; Investor Lawyers Blog &#8212; October 21, 2009\" \/>\n<meta name=\"twitter:description\" content=\"Two Dresdner Kleinwort traders were censured for market abuse by the United Kingdom&#039;s Financial Services Authority. According to the FSA, Darren Morton &#8212; October 21, 2009\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA &#8212; Investor Lawyers Blog &#8212; October 21, 2009","description":"Two Dresdner Kleinwort traders were censured for market abuse by the United Kingdom's Financial Services Authority. According to the FSA, Darren Morton &#8212; October 21, 2009","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/","twitter_card":"summary_large_image","twitter_title":"Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA &#8212; Investor Lawyers Blog &#8212; October 21, 2009","twitter_description":"Two Dresdner Kleinwort traders were censured for market abuse by the United Kingdom's Financial Services Authority. According to the FSA, Darren Morton &#8212; October 21, 2009","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA","datePublished":"2009-10-21T20:56:21+00:00","dateModified":"2022-03-09T21:57:25+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/"},"wordCount":304,"articleSection":["Barclays Capital","Dresdner Kleinwort Securities","Insider Trading"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/","url":"https:\/\/www.investorlawyers.com\/blog\/two-dresdner-kleinwort-traders\/","name":"Two Dresdner Kleinwort Traders Censured for Market Abuse by UK\u2019s FSA &#8212; Investor Lawyers Blog &#8212; October 21, 2009","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2009-10-21T20:56:21+00:00","dateModified":"2022-03-09T21:57:25+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Two Dresdner Kleinwort traders were censured for market abuse by the United Kingdom's Financial Services Authority. 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