FCA Fines Consultant for Insider Trading in Oil and Gas Shares

The Financial Conduct Authority (FCA) has fined consultant Russell Gerrity £309,843 after he used inside information to generate £128,765 in unlawful profits.

While working as a consultant, Mr Gerrity had access to confidential information relating to oil and gas discoveries during drilling operations. Between October 2018 and January 2022, he exploited this non-public information to trade shares in Chariot Oil & Gas Limited and Eco (Atlantic) Oil and Gas Plc ahead of market announcements that led to share price increases.

In a further instance of market abuse, Mr Gerrity used inside information to avoid financial losses. He sold shares he already owned before an announcement confirmed that no oil or gas had been discovered, triggering a subsequent fall in the share price.

Detection and Enforcement

The FCA was first alerted to some of Mr Gerrity’s activity through Suspicious Transaction and Order Reports (STORs) submitted by a regulated firm, underlining the crucial role the industry plays in identifying and reporting potential market abuse.

During its investigation, the FCA also identified additional suspicious trades across multiple brokerage accounts. These trades were placed while Mr Gerrity was based outside the UK, demonstrating the regulator’s ability to monitor and investigate cross-border market abuse.

A Clear Message on Market Integrity

“Mr Gerrity abused his position to line his own pockets. We will take action against those who damage the integrity of our markets and will seek to recover any ill-gotten gains.”

— Steve Smart, Executive Director of Enforcement and Market Oversight, FCA

This enforcement action sends a strong warning to market participants: misuse of inside information will not be tolerated. The FCA remains committed to protecting market integrity, maintaining investor confidence, and holding individuals accountable for financial misconduct.