FCA Fines Two Individuals a Combined £108,731 for Insider Dealing

Why It Matters

The case underscores the FCA’s aggressive stance on insider trading and highlights how industry reporting can swiftly expose market abuse, reinforcing investor confidence in UK markets.

Key Takeaways

• FCA imposed £108,731 total fines for insider dealing
• Hirani leaked confidential Bidstack deal information to Kerai
• Kerai bought 1.3 million shares, profit over £9,000
• Share price jumped 125% after public announcement
• Industry report triggered FCA investigation, showing reporting importance

Pulse Analysis

Insider trading remains a top priority for regulators, and the FCA’s recent action against two individuals involved in Bidstack Group Plc illustrates the agency’s commitment to preserving market integrity. Bidstack, an advertising technology firm that embeds ads within video games, was poised to close a lucrative deal with a major game publisher in late 2021. When interim CFO Bhavesh Hirani accessed non‑public details of the transaction, he passed the information to Dipesh Kerai, enabling a coordinated purchase of 1.3 million shares ahead of the public announcement. The subsequent 125% price jump delivered a tidy profit for Kerai, prompting the FCA to impose a combined £108,731 penalty, including disgorgement and reduced settlement amounts.

The investigation was sparked by a Suspicious Transaction and Order Report filed by a market participant, highlighting the critical role of industry vigilance in detecting abuse. Such reports allow regulators to act swiftly, preventing further erosion of trust among investors. Both perpetrators were charged under Article 14 of the UK Market Abuse Regulation, reflecting the FCA’s use of robust legal frameworks to deter illicit conduct. The fines, reduced by a 30% settlement discount, still serve as a strong deterrent, reinforcing that even short‑term gains from insider information are outweighed by severe financial and reputational costs.

Beyond the immediate penalties, the case signals broader implications for the fintech and ad‑tech sectors, where rapid deal flows and proprietary data create fertile ground for misuse. The FCA’s five‑year strategy emphasizes heightened surveillance, collaborative enforcement, and public awareness to curb financial crime. Companies are now urged to tighten internal controls, enhance employee training on market abuse, and foster a culture of compliance. As regulators tighten the net, market participants who proactively report suspicious activity will play an increasingly pivotal role in safeguarding the fairness and transparency of UK capital markets.