Market Abuse - FSA Final Notice in Relation to Darwin Clifton (Mr Clifton) and Byron Holdings Limited (Byron)

18/02/2009

The FSA has, under a Final Notice, issued fines to Mr Clifton and to Byron in relation to their actions between 19 November 2007 and 8 February 2008 (Relevant Period).

Mr Clifton is a director and shareholder of Byron, a Falklands Islands incorporated company. Mr Clifton is also a non-executive director of Desire Petroleum PLC a company which investigates oil and gas opportunities in and around the Falkland Islands and which is listed on the AIM market of the London Stock Exchange.

During the Relevant Period Mr Clifton, on four separate occasions, prompted Byron to acquire shares in Desire Petroleum. This action would, had Mr Clifton acquired the shares himself, amounted to market abuse given that Mr Clifton, in his position as a non-executive director of Desire Petroleum, knew that Desire Petroleum was in advanced talks with a third party to enter a joint venture drilling agreement. Upon the announcement that the drilling agreement had been agreed and signed, the price of Desire Petroleum shares increased by 36% from the previous day's trading.

Byron was fined for market abuse in breach of s118(2) of the FSMA 2000. Mr Clifton was fined for requiring another to engage in activity which, had he done so himself, would have been considered market abuse.

It is important to note that the FSA determined that Mr Clifton's conduct was not deliberate but that he had simply failed to consider whether such conduct would amount to market abuse - the subject's intent is not necessarily a determining factor, as was explained by Margaret Cole, FSA Enforcement Director:

Contact: simonmunro@city-law.net

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