FINANCIAL Services Authority (FSA) has fined Nicholas Kyprios, head of European credit sales at Credit Suisse in London, £210,000 for improper market conduct in disclosing client confidential information ahead of a significant bond issue in November 2009.
The regulator’s fine follows on closely from a series of punishments handed out to a number of market participants, including Andrew Osborne of Bank of America Merrill Lynch, in relation to an equity fund-raising for Punch Taverns, also in 2009.
Credit Suisse acted on behalf of Liberty Global during its takeover of UnityMedia, which was part-financed by a €2.5bn bond issue.
So that he could market the bond to clients, on 9 November 2009, Kyprios was wall-crossed regarding the takeover and the proposed bond issue.
He was given confidential information by Credit Suisse, told that it was inside information and instructed in writing not to disclose it to third parties.
Kyprios then told a fund manager he was “getting warmer” when asked questions about the bond issue.
Tracey McDermott (pictured), acting director of enforcement and financial crime, said: “While the FSA accepts that he did not set out to disclose the information, Kyprios’ conduct in trying to push to the limit what he could say resulted in him crossing the line.”
Kyprios remains at Credit Suisse but he has lost part of his bonus. The bank said yesterday: “We deeply regret that one of our employees was sanctioned by the UK FSA for breaches related to our information policies.”
Credit Suisse’s decision to retain its employee was seen as a bold one yesterday.