On December 12, 2019, The UK Financial Conduct Authority issued a Final Notice, imposing a financial penalty of £45,000 (approximately $58,800) on Kevin Gorman for breaching Article 19(1) of the Market Abuse Regulations (MAR). Gorman was employed as Managing Director of Logistics at Braemar Shipping Services plc, where he also served as a member of the Executive Committee. According to the FCA, as a person discharging managerial responsibilities as defined by Article 3(1)(25) of the MAR — and therefore likely to have access to inside information about the company — Gorman was required to notify both Braemar and the FCA of transactions on his own account involving Braemar shares; yet, in contravention of this requirement, Gorman sold Braemar shares on three occasions in August and November 2016 and January 2017. As noted in the Final Notice, Gorman’s failure to notify his employer in anticipation of the trades violated Braemar’s internal policies, and prevented the company from notifying the market in compliance with Article 19(3) of MAR.
The FCA granted Gorman a 30% discount as a result of the executive’s agreement to resolve the matter, resulting in a £45,000 rather than a £64,300 fine.
January 10, 2020