Parker v FSA: a big fine but will it be paid?

In August, the Financial Services and Markets Tribunal published its decision in the market abuse case of Parker v FSA. Andrew Hart and Oliver Kerridge of Freshfields review the findings .

Andrew Hart (+44 (0) 20 7936 4000; andrew. hart@freshfields.com) is joint head of Freshfields Bruckhaus Deringer’s Financial Institutions Disputes Group.

Mr Parker was employed as credit risk and treasury manager by Pace Micro Technology plc, a company listed on the London Stock Exchange. One of Pace’s major customers was NTL. During late 2001 and early 2002, serious financial difficulties at NTL were causing problems for Pace. Mr Parker was closely involved with the developing situation. In addition, talks with a much larger American competitor about the possibility that it might make an agreed takeover bid for Pace were abandoned in early 2002. Ultimately it became apparent that Pace would need to issue a profit warning (and Pace was separately fined £450,000 for committing Listing Rule breaches in connection with the profit warning).