The FCA has fined former adviser Neil Sedgwick Dwane £100,281 for insider dealing and banned him from working for UK financial services.

It accused him of “dishonesty and greed” by making more than £26,000 by selling shares ahead of an announcement.

In 2022, Mr Dwane worked as a capital markets adviser within the investor relations team at ITM Power Plc (ITM), the FCA reported.

ITM designs and manufactures largescale electrolysers based on proton exchange membrane (PEM) technology to produce green hydrogen via electrolysis. It was admitted to trading on AIM in 2004.

Before joining ITM, Mr Dwane had held numerous, often senior, roles in financial services. Between 1987 and 2001, Mr Dwane was a portfolio manager at three major financial services firms. Then, between 2001 and 2015, Mr Dwane was the European chief investment officer (CIO) at a major international investment fund.

Mr Dwane subsequently became a global strategist at the same firm between 2016 and 2020. Between 1 December 2001 and 8 December 2019, Mr Dwane was an approved person.

He joined ITM in May 2021 as a capital markets adviser, working nominally for two days a week. The major international investment fund he had been CIO at had, for a time, been one of ITM’s largest shareholders and Mr Dwane had been involved in a number of ITM’s funding rounds and results roadshows.

Mr Dwane had met senior members of ITM’s management. Allowing him to become familiar with ITM’s business, its products and its senior management. It was due to this experience and knowledge that he was appointed as an advisor at ITM.

Through his role, Mr Dwane knew the details of an announcement ITM planned to make to the market on 27 October 2022.  After the announcement relating to warranty and manufacturing issues, ITM’s share price fell by around 37%.

The day before the announcement, Mr Dwane used the inside information he had to sell his own and a family member’s 125,000 shares worth £124,287. He took advantage of the subsequent fall in ITM’s share price to purchase 180,000 shares worth £140,700, gaining £26,575 from the price difference.

The regulator said Mr Dwane is an experienced financial professional and knew his conduct amounted to insider dealing, abusing his position of trust.

Mr Dwane was required to obtain ITM’s permission before dealing in its shares but he failed to do so, the FCA said.

It said: "The Authority considers that Mr Dwane’s actions amount to insider dealing as defined by Article 8 of UK MAR and in breach of Article 14 of UK MAR and that he therefore engaged in market abuse.”

Steve Smart, executive director of enforcement and market oversight at the FCA, said: “As an experienced financial professional, Mr Dwane’s dishonesty and greed fell way short of the standards we expect. Trading on inside information while in a position of trust rigs the system and undermines the integrity of the market.”

Mr Dwane agreed to resolve the matter and qualified for a 30% (stage 1) discount under the FCA’s settlement procedures. Were it not for the discount, the FCA would have imposed a financial penalty of £126,575 plus interest on the £26,575 benefit.

The FCA said it continues to use its full range of powers to clamp down on all types of market abuse, using the most appropriate regulatory and criminal action to hold people to account.  It said tackling financial crime is a priority under the FCA's 5-year strategy.