FCA bans investment consultant for market abuse

The Financial Conduct Authority (FCA) has banned former investment consultant Rahul Shah for encouraging another person to engage in behaviour which, if engaged in by Shah, would amount to market abuse.

In addition to Shah's full prohibition, the FCA would have imposed a fine of £125,000 but for Shah's financial position. The FCA found Shah deliberately encouraged another person to purchase shares in Vyke Communications whilst Shah was himself in possession of inside information regarding Vyke. Shah had contractual agreements which meant he stood to receive 40% of any profit made from the purchase of the Vyke shares. He had been given inside information about Vyke on two separate occasions, on 16 and 30 June 2010. The inside information concerned a joint venture agreement to be...