The UK’s Financial Services Authority today fined a former equities analyst £52,500 for allegedly previewing forthcoming research for a couple of fund managers.

The analyst, who was with Citigroup’s Global Equity Research in London, allegedly selectively disclosed details of his valuation methodology, final recommendation and target price for a company he was initiating coverage on prior to its publication. The FSA noted that none of the recipients of the information traded in the shares of the company as a result of having received it.

By disclosing this information after he had formed an opinion about the company and had initiated Citigroup’s internal approval procedure failed to observe proper standards of market conduct, the FSA said. Citigroup brought the matter to the FSA’s attention.

Margaret Cole, FSA Director of Enforcement, said, “The FSA expects all individuals, in particular approved persons, involved in the production of research for publication to the markets to act properly to ensure the fair distribution of that research. This is fundamental to the maintenance of clean and orderly markets.”

In reaching its decision, the FSA said it has taken into account the fact that he did not have any intention of manipulating the company’s share price in making these disclosures nor did he obtain any financial gain from his misconduct. It added that he co-operated fully with the FSA and has agreed to settle this matter at an early stage of the investigation thereby receiving a 30% discount on the amount of his fine, reduced from £75,000 to £52,500.