Matthew and Nikolas West have been sentenced for insider dealing, following a prosecution brought by the FCA.

Matthew West received a sentence of 15 months’ imprisonment, suspended for 2 years, together with 200 hours of unpaid work. His brother, Nikolas West, was sentenced to 6 months’ imprisonment, suspended for 12 months.

Both men were experienced traders with more than 20 years in the UK and international markets, and had developed wide networks of contacts across the investment community.

The FCA identified their misconduct through its market surveillance systems, which flagged suspicious trading activity. Investigators found that the brothers acted within minutes of receiving confidential information, coordinating trades that generated profits of £44,164.36.

The court, however, ordered them to repay more than £280,000 – representing the total value of the shares traded as part of their illegal activity, not only the profit gained.

Steve Smart, FCA Executive Director of Enforcement and Market Oversight, said:

“Greed got the better of them. The West brothers knew the rules and still chose to break the law. This should serve as a reminder that the FCA will act against those who abuse their position – including depriving them of their ill-gotten gains.”

Matthew West, who first received the confidential information, was regularly approached by brokers with potential investment opportunities. These opportunities, often relating to upcoming capital raisings on the Alternative Investment Market (AIM), were provided under strict confidentiality agreements.

Instead of respecting these obligations, Matthew West disclosed the information to his brother. Messages later recovered showed the brothers exchanging details about the opportunities and discussing how to maximise profits before the information became public.

Most of the trading was carried out by Matthew West, but both brothers knew that their actions breached market rules and undermined market integrity.

In sentencing, His Honour Judge Christopher Hehir noted:

“Markets cannot operate fairly if they are rigged by dishonest operators. Grave economic harm may result, so deterrence is important.”