The Financial Services Authority, the UK regulator, has fined Nicholas Kyprios, head of European credit sales at Credit Suisse in London, £210,000 ($330,000) for improper market conduct.

Credit Suisse acted on behalf of Liberty Global during its takeover of UnityMedia, which was part-financed by a €2.5 billion ($3.3 billion) 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.

On 11 November 2009 Kyprios called a fund manager to invite him to the bond issue road show. The fund manager told Kyprios he did not want to be wall-crossed. Although Kyprios did not have a pre-meditated intention to disclose the client confidential information, the fund manager asked Kyprios about the bond issue and in response Kyprios engaged in a guessing game, including advising when the fund manager was “getting warmer”. 

As a result of the guessing game, Kyprios signalled key information to the fund manager.

“Approved persons who have been wall-crossed need to recognise the value of the information they have been given and be vigilant in ensuring they do not inadvertently or recklessly disclose such information in breach of wall-crossing procedures,” said Tracey McDermott, acting director of enforcement and financial crime.

Kyprios agreed to settle at an early stage and in doing so qualified for a 30 per cent discount on the financial penalty.