The brother of the accomplice to Richard Ralph, the former Falkland Islands Governor who was fined last year for insider dealing, was himself fined £176,254 today for his role in the affair.

The Financial Services Authority (FSA) imposed the penalty on Erik Boyen, a Belgian citizen, and said that the fine would have been £21,000 more but for his willingness to settle at an early stage of the investigation.

Richard Ralph, who was a former British Ambassador to Romania and Peru as well as governing the Falklands, asked a friend, Filip Boyen, to buy shares in Monterrico Metals in early 2007, when, as chairman of the mining company, he knew it was about to announce that it had received a takeover bid that would send the shares soaring.

Filip Boyen then asked his brother, Erik, to buy shares on his behalf.

Between January 29 and February 2, 2007, Erik Boyen bought £16,450 of shares for his brother and £332,295 of shares on his own account.

He later sold all the shares, making a personal profit of £127,254, and gave his brother €35,800 as proceeds from the sale of his shares.

Filip Boyen was fined £81,082 at the time of the Ralph case last November. Mr Ralph was fined £117,691.

Margaret Cole, the director of enforcement at the FSA said: “Erik Boyen used inside information to gain an unfair advantage over other market participants in order to make a substantial profit.

"Such abuse could damage investors’ confidence in the UK financial markets. The fines given to all three individuals in this case show our determination to take action against everyone involved when inside information is misused.”

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