The Financial Conduct Authority (FCA) has fined David Davis, senior partner and compliance officer of Paul E Schweder Miller & Co, £70,258, and Vandana Parikh, a broker at the same firm, £45,673, for failing to act with due skill, care and diligence in October 2010.
The FCA said the pair's actions enabled market abuse to be committed by Rameshkumar Goenka, a Dubai-based private investor, when he illegally manipulated the closing price of securities traded on the London Stock Exchange (LSE) in October 2010. Parikh was approached by Goenka in April 2010 in relation to trades in Gazprom and Reliance securities in LSE closing auctions. She explained the impact the size and timings of orders could have on the price but failed to recognise the risk his proposed price rigging actions posed. She also did not challenge his intentions. In a later Relian...
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