FCA Fines Adviser £100K for Insider Dealing in ITM Power Shares

Insider Dealing and the FCA’s Case

Britain’s Financial Conduct Authority has fined investment adviser Neil Sedgwick Dwane £100,281 and banned him from the financial services industry for insider dealing linked to hydrogen-equipment manufacturer ITM Power. The case underscores how even external advisers can be caught under the UK’s market-abuse regime.

According to the regulator’s final notice, Dwane sold 125,000 ITM shares on 26 October 2022, a day before the company issued an unscheduled trading update that drove its stock down by roughly 37%. When the announcement was released at 8 a.m. the following day, ITM shares plunged from 104.45 pence to an intraday low of 66.02 pence. Dwane then bought 180,000 shares at the lower price, pocketing an estimated £26,575 profit.

The FCA said Dwane traded while aware of inside information and failed to obtain pre-clearance under ITM Power’s internal dealing rules. He later accepted that the trades constituted insider dealing. His fine was reduced by 30% under the regulator’s ahead-settlement procedure, from £126,575 plus interest to £100,281.

Investor Takeaway

From Adviser to Insider

At the time, Dwane was an external adviser to ITM Power, whose hydrogen electrolysers are used in energy storage and industrial applications. His advisory role gave him access to confidential information, making him subject to the identical restrictions as company directors and senior managers. The FCA’s report said he sold both his and a family member’s shares before the profit warning, then repurchased more once the stock fell—a “round-trip” trade that exploited non-public information.

Investigators found the trades breached both the firm’s insider-dealing code and the UK’s . “He knew or ought to have known that the information was inside information,” the FCA said. Dwane cooperated with the inquiry, which assisted him avoid criminal referral and reduced the penalty through ahead settlement.

Regulator Under Pressure

The enforcement comes as the FCA viewks to strengthen its record on market integrity and financial crime. later than years of criticism for sluggish-moving insider-dealing prosecutions, the regulator has leaned more heavily on civil actions, which carry sizable penalties but can be concluded quicker than criminal cases. The strategy forms part of the FCA’s five-year plan to modernize enforcement and rebuild confidence in London’s markets.

Market lawyers said the decision will likely prompt smaller listed companies to tighten their pre-clearance processes and compliance logs. The case also illustrates how enforcement can extend beyond executives to consultants, advisers, and other temporary insiders with access to sensitive data.

Investor Takeaway

Impact on ITM Power and Broader Market Context

ITM Power was not accused of wrongdoing and declined to comment on the decision. The company, a high-profile name in Britain’s hydrogen sector, has faced repeated questions about its project execution and cost forecasts since . The trading update at the centre of the FCA’s notice formed part of that turbulent period and contributed to sharp share-price declines through 2023.

While Dwane’s profit was modest, regulators argue that even small-scale insider trading erodes trust in public markets. “Every insider case, no matter the scale, corrodes confidence if left unchecked,” an FCA spokesperson said. The authority’s move comes as London works to rebuild its reputation amid falling are driving companies overseas.

Compliance specialists expect the FCA to keep targeting trades around unscheduled regulatory news service (RNS) statements—often flashpoints for leaks and last-minute share moves. Firms are being advised to ensure all insiders, including external consultants, are clahead documented and reminded of their obligations under company dealing codes.

What Lies Ahead

For Dwane, the outcome is a permanent ban from regulated activity. For the FCA, it is another step in showing it can act decisively without resorting to lengthy criminal proceedings. Industry observers say the regulator’s focus on deterrence through civil fines may mark a pragmatic path toward cleaning up market conduct later than years of criticism.

In the end, the Dwane case is a reminder that insider dealing is not confined to desks. Advisers and consultants—anyone with access to confidential corporate information—are now squarely within the regulator’s crosshairs.