FSA v Mohammed

Andrew George represented the Financial Services Authority (“FSA”) in the first case of market abuse to be decided by the Financial Services and Markets Tribunal (FSA v Mohammed). The Tribunal upheld the FSA’s finding that an auditor who had purchased shares in a client ahead of the announcement of a major disposal by that client was guilty of market abuse. The share price had leapt by nearly 20% when the disposal was announced; at which point the shares were sold. The Tribunal’s decision provides the first guidance on the burden of proof in market abuse cases, the level of “inside” knowledge necessary to sustain a market abuse charge and the distinction between available information and market rumours. [13.04.05].