A Citigroup analyst who alerted favoured clients about a “buy” recommendation he was about to issue on a company that he believed was “hot stuff” was fined £52,500 yesterday.

Roberto Casoni, a London-based equities analyst, was guilty of improper conduct that might have led to market abuse, the Financial Services Authority (FSA) ruled.

The fine, the eighth-largest imposed on an individual by the FSA, would have been £75,000 but for Mr Casoni’s willingness to settle at an early stage of the investigation.

Analysts are obliged to publish price-sensitive research to all clients at the same time under FSA fairness rules.

However, in January 2006 Mr Casoni alerted four clients that he was about begin coverage on an Italian leasing firm with an emphatic “buy” recommendation.

In an e-mail to one fund manager days before the official publication date, he said of the company, Banca Italease: “It is hot stuff.”

To another client, again before publication, he wrote: “Banca Italease is still a strong buy, I initiate tomorrow with a plus 50 per cent upside.”

Mr Casoni, who is 42 and with 17 years’ experience as an analyst, left Citigroup the following month when the US bank detected his activity.

He is understood since to have been close to joining Centaurus Capital, the hedge fund manager, but the appointment did not take place.

Margaret Cole, the FSA’s director of enforcement, said: “The FSA expects all individuals, in particular approved persons, involved in the production of research for publication to the markets to act properly to ensure the fair distribution of that research.

“Mr Casoni allowed the recipients [of his leaks] the opportunity to preempt the conclusions of the published research ahead of the rest of the market.”

None of the four fund managers acted on the tip, the FSA said. Shares in Banca Italease, which were trading in the €25 to €28 range in the days before publication, rose to €32.

Before his departure from Citigroup, Mr Casoni was a consistently top-rated analyst well known for his expertise in Italian small and mid-cap companies. He was appointed managing director in 2002 in charge of his own team.

Citigroup, which in 2005 was fined £13.9 million by the FSA for its role in the so-called “Dr Evil” bond market manipulation affair, was exonerated by the FSA. A Citigroup spokesman said: “We are pleased the FSA recognised that we had the appropriate procedures in place for distribution of research. We didn’t approve Mr Casoni’s actions and nor do we condone them.”

Watchdog bites back

£750,000 Philippe Jabre, former partner at hedge fund manager GLG; market abuse

£350,000 David Maslen, former Deutsche Bank head of cash trading; knowingly concerned in failure to observe proper standards

£290,000 Robert Bonnier, entrepreneur; market abuse

£250,000 James Parker, former senior accountant at Pace Micro; market abuse

£150,000 Christopher Goekjian, former chief executive of Credit Suisse Financial Products; failing to detect or prevent attempts to mislead Japan’s regulator

£75,000 Christopher Potts, former head of market-making at Evolution Securities; market abuse

£70,000 Michael Ackers, former joint head of UK equity trading at ABN Amro; market misconduct

£52,500 Roberto Casoni, former equities analyst at Citigroup; market misconduct

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