HM Courts and Tribunal Service: Upper Tribunal (Tax and Chancery) Decisions: Jason Geddis v FSA

Her Majesty's Courts and Tribunals Service

September 1, 2011

The FSA imposed sanctions on Mr Jason Geddis in relation to market abuse committed by him during trading on the London Metal Exchange on 21 November 2008. In its Decision Notice dated 11 June 2010 the FSA decided to impose a penalty of £25,000, and made a prohibition order preventing him from performing any function in relation to any regulated activities.

Mr Geddis referred the matter to the Upper Tribunal (the "Tribunal"), contending that the imposed sanctions were excessive and that he should have been subject to no more than a public statement that he had engaged in the market abuse. The Tribunal held that:

• it was not appropriate to levy a fine - the Tribunal accepted that the FSA misjudged the facts of the case;
• in this case the regulatory objectives would be properly advanced by a public censure - the Tribunal directed that the FSA should issue a statement 16 pursuant to s.205, FSMA 2000;
• no prohibition order was justified - Mr Geddis had been involved in the market for 20 years without any compliance problems. He demonstrated a lack of care resulting in a disorderly market on a single occasion, in a manner which the Tribunal believed he would never repeat.