FCA Fines Adviser £100,281 for Insider Trading in ITM Power Shares

The Financial Conduct Authority (FCA) has fined investment adviser Neil Sedgwick Dwane £100,281 and permanently banned him from financial services after finding he engaged in insider trading involving hydrogen-equipment manufacturer ITM Power.

The case highlights the regulator's growing reliance on civil enforcement to address market abuse swiftly, even when financial gains are limited.

According to the FCA's final notice, Dwane sold 125,000 ITM Power shares on 26 October 2022, just one day before the company issued an unscheduled trading update that sent its stock tumbling by 37%. When the announcement went public the next morning, ITM's shares dropped from 104.45 pence to an intraday low of 66.02 pence. Dwane then repurchased 180,000 shares at the lower price, netting an estimated £26,575 profit.

Investigators concluded that Dwane traded while in possession of non-public, price-sensitive information, and failed to obtain the required pre-clearance under ITM's internal dealing rules. He later acknowledged the conduct constituted insider dealing. His penalty was reduced by 30% through the FCA's early-settlement process, bringing the total fine down from £126,575 plus interest.

At the time of the trades, Dwane served as an external adviser to ITM Power—a role that gave him access to confidential corporate data. The FCA noted that he executed the trades both for himself and on behalf of a family member, describing the activity as a "round-trip" transaction exploiting privileged information.

"The information was inside information, and he knew or ought to have known it," the regulator said in its notice. Dwane's cooperation during the investigation allowed him to avoid criminal prosecution, which the FCA reserves for more serious or contested cases.

The enforcement action arrives amid the regulator's broader effort to strengthen market integrity and respond to criticism over slow-moving insider-dealing prosecutions. In recent years, the FCA has emphasized faster civil actions with substantial financial penalties as part of its five-year enforcement reform plan.

Legal analysts say the ruling underscores that insider rules apply not only to company executives but also to consultants, contractors, and temporary insiders. Smaller listed firms may now face pressure to tighten pre-clearance procedures and compliance monitoring for anyone with access to sensitive information.

ITM Power itself was not accused of any wrongdoing and declined to comment on the ruling. The company, a leading name in the UK's hydrogen technology sector, has faced recurring questions about its financial forecasts and execution challenges since 2022—a period marked by volatility in its share price.

An FCA spokesperson commented that "every insider case, no matter the scale, corrodes confidence if left unchecked," emphasizing that the Dwane decision forms part of London's drive to rebuild credibility as a transparent market hub.

For Dwane, the ruling ends his ability to work in regulated financial roles. For the FCA, it represents another step toward deterring misconduct through civil penalties rather than protracted criminal trials—signaling a shift toward speed and certainty in market oversight.