FCA reveals insider trading investigation at Carillion

The Financial Conduct Authority has revealed it is investigating claims of insider trading at Carillion ahead of its profit warning last July.

That announcement was the first public acknowledgement of problems at the Wolverhampton-based group which resulted in its collapse in January.

There are a number of ongoing investigations into the events that caused the company’s failure.

One of those is being led by MPs on a Parliamentary select committee which has received an update from the Financial Conduct Authority (FCA) chief executive Andrew Bailey.

Baley confirmed the FCA was “aware of allegations of insider trading” ahead of its July trading update.

He said: “Our investigation is into the the timeliness and content of the firm’s announcements. Our primary focus is to determine whether the matters announced in Carillion’s trading update on 10 July 2017 were identified and announced at the appropriate time.

“We are also considering whether earlier anouncements made by Carillion were false or misleading as a result.”