LONDON (Reuters) - A former UBS compliance officer and her day-trader friend were found guilty of insider dealing by a London jury on Tuesday, marking a success for Britain’s Financial Conduct Authority (FCA) after a two-month trial.
The jury at Southwark Crown Court convicted Fabiana Abdel-Malek, 36, and 40-year-old Walid Anis Choucair of three counts of insider dealing between June 2013 and June 2014.
The jury has yet to reach a verdict on two further counts against both defendants and was asked by the judge to continue its deliberations on Wednesday. Insider dealing carries a maximum seven-year jail sentence in Britain.
Prosecutors alleged Abdel-Malek accessed confidential information on five takeovers that UBS was working on and would pass them to Choucair, who would trade on the information and netted around 1.4 million pounds ($1.8 million), the jury heard.
The convictions come as the FCA, under its Chief Executive Andrew Bailey, faces an independent review into its handling of the suspension of fund manager Neil Woodford’s flagship fund and the collapse of investment firm London Capital & Finance.
Bailey, who is viewed as a leading candidate to replace Mark Carney as Bank of England governor next year, faced a grilling by lawmakers about the watchdog’s role on Tuesday.
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Reporting by Kirstin Ridley; editing by Carolyn Cohn and Alexander Smith