Philip Lynch formally sanctioned for insider trading

The High Court upheld a series of sanctions recommended by a Central Bank investigation which found that a former non-executive director of drinks group C&C, Philip Lynch, engaged in insider trading in the company’s shares.

The ruling marks the first time someone has been formally sanctioned after being found to have engaged in insider trading following such a regulatory investigation.

As a result of the decision, Mr. Lynch has received a public reprimand, a fine of €75,000 and has been disqualified from participating in the business of a regulated financial services company for a period of five years.

You will also have to pay €37,500 in expenses to the Central Bank.

The investigation was conducted by the Central Bank’s enforcement division and the outcome assessed by a panel made up of several retired senior judges.

It found that Mr. Lynch violated market abuse regulations governing insider trading when he bought 200,000 shares in the publicly traded C&C company on October 21, 2008.

Inside information related to the hiring of a new chief executive of the company, John Dunsmore, lead counsel Remy Farrell of the Central Bank’s enforcement division told the court.

Marcus Dowling SC, representing Mr. Lynch, explained that his client did not object to the order sought to confirm the sanctions.

He said that this was not a typical case as Mr. Lynch had not benefited from his investment in the company and, in fact, had substantially lost his ownership of its shares.

Dowling said that his client had not acted covertly and had announced his trades to the market.

Chief Justice Mary Irvine said she saw no reason not to uphold the requested order.

A high-profile businessman, Mr. Lynch had previously been CEO of well-known companies IAWS and One51.

He is also the formed chairman of the National Children’s Hospital Development Board and served as chairman of An Post and Bord Bia.

Mr. Lynch was also a director of a number of other companies, including Coillte, Irish Life and Permanent and FBD.

In 2013, the Central Bank settled with C&C and fined it €90,000 for breaches between January 2008 and January 2009 of the insider list requirements in the market abuse rules and regulations.

It found that C&C did not regularly and promptly update its insider list with the identity of people who worked for it and who had access to inside information, or who no longer had access to inside information.

You also did not indicate in your insider list the date of each and every time you updated and maintained a complete list of primary contacts at any other entity acting on your behalf that had access to inside information.

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