More FSA fines for Punch Taverns insider dealing

The City watchdog has handed out more fines over US hedge fund Greenlight Capital’s insider dealing of Punch Taverns shares.

Earlier this week the fund and its founder David Einhorn were fined a combined £7.2 million for the sale of Punch Taverns (PUB.L) shares following a tip-off about the pub chain’s plans for significant equity fundraising.

The Financial Services Authority (FSA) has now fined former Greenlight Capital compliance officer Alexander Ten-Holter £130,000 for failing to question the sale of shares in the pub group and has prohibited him from holding future compliance roles.

Caspar Agnew, a trading desk director at JP Morgan Cazenove, was also fined £65,000 for failing to identify and report the suspicious order from Greenlight to sell Punch Taverns shares.

FSA acting director of enforcement and financial crime Tracey McDermott said: ‘Ten Holter’s approach to compliance oversight was wholly inadequate. Serious compliance failures of this nature can have a dramatic effect on the orderliness and integrity of the markets.

‘Agnew was an experienced trader, so should have been suspicious of this transaction and award of his responsibilities to report it.’