The Financial Services Authority (FSA) has fined a stockbroker £24,000 for encouraging his clients to buy shares using inside information.

Alexei Krilov-Harrison, a former broker at Pacific Continental Securities UK, was fined for encouraging clients to invest in Provexis, an AIM-listed food technology company. Mr Krilov-Harrison had inside information that Provexis was about to announce a significant contract with Unilever, the consumer goods giant.

After receiving the inside information, Mr Krilov-Harrison called three clients telling them about the contract, saying its announcement would cause Provexis' share price to “jump up substantially”.

Two of the three clients bought Provexis shares through Mr Kriilov-Harrison.

The FSA found that Mr Krilov-Harrison’s actions were deliberate and motivated by his desire to receive a bonus.

The fine was reduced by 20 per cent because Mr Krilov-Harrison agreed to settle the investigation at an early stage and waive his right to appeal the penalty.

He was given a further £10,000 reduction because of his "financial circumstances". The original fine was £40,000.

Pacific Continental Securities UK entered administration in 2007.

Margaret Cole, director of enforcement and financial crime at the FSA, said: “Anyone who uses inside information to encourage their clients to buy shares is abusing their privileged position and cheating other honest investors. This is plainly wrong.

“We are committed to tackling market abuse in its various guises and will not hesitate to take action to ensure that the UK markets operate in a fair, efficient and orderly way for all investors.”

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