-- Kyprios fined GBP210,000 for disclosing client confidential information -- In connection with financing for Liberty Global's takeover of UnityMedia -- Part of FSA's clampdown for market misconduct following financial crisis By Marietta Cauchi Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- In its continuing clampdown on market misconduct, the Financial Services Authority on Tuesday said it had fined Nicholas Kyprios, head of European credit sales at Credit Suisse (CS) in London, GBP210,000 for disclosing client confidential information ahead of a significant bond issue in November 2009. Credit Suisse acted for Liberty Global Inc. on its takeover of UnityMedia GmbH, which was being partly financed by a EUR2.5 billion bond issue. Kyprios, who was marketing the bond to clients, was given privileged information, or "wall-crossed," regarding the takeover and bond issue. He was given confidential information by Credit Suisse, told that it was inside information and instructed in writing not to disclose it to third parties, said the FSA. In discussion with a fund manager--who said he didn't want to be wall-crossed--Kyprios engaged in a "guessing game," including advising when the fund manager was "getting warmer" in his questioning. As a result of the "game," it said, Kyprios signaled confidential information to the fund manager, including the fact the UnityMedia was about to bring a bond to market and that an announcement was imminent, the potential rating of the bond and that it was M&A-related. "While the FSA accepts that he did not set out to disclose the information, Kyprios' conduct in trying to push to the limit what he could say resulted in him crossing the line," FSA enforcer Tracey McDermott said. "His behavior was well below the standards we expect of senior market professionals who we should be able to rely on to uphold the system rather than seek to get round it. The high penalty reflects the seriousness of Kyprios' breach," she added. Kyprios agreed to settle at an early stage and in doing so qualified for a 30% discount on the financial penalty. Without the reduction, the FSA would have fined Kyprios GBP300,000. Kyprios remains in the same position at Credit Suisse, but the bank said that it takes all regulatory breaches extremely seriously and that it has also fined him. "We deeply regret that one of our employees was sanctioned by the U.K. FSA for breaches related to our information policies," a bank spokesman said. "Credit Suisse fully supports the FSA's actions to ensure information is properly controlled and has reinforced the FSA's decision by imposing its own financial penalty on the individual," he added. Credit Suisse said Kyprios wouldn't be made available for comment. A person familiar with the matter said that Kyprios had been fined 50% of his variable compensation for 2011 by Credit Suisse. The FSA has been ramping up its enforcement of penalties for improper market conduct and market abuse in the wake of the financial crisis in a bid to show its teeth after being seen as a champion of "light touch" regulation. Just last month, it imposed a third fine in connection with alleged insider trading at U.S. Greenlight Capital Inc. Fines of GBP3.6 million each were imposed on Greenlight and its owner and President David Einhorn and a fine of GBP350,000 was imposed on former Merrill Lynch executive Andrew Osborne. - By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
