Insider dealing fine of €67,580 imposed on Alan Dalton by Central Bank

Man repays €21,800 after insider dealing investigation

The Central Bank confirmed on Thursday that Alan Dalton breached insider dealing rules under the EU's Market Abuse Regulation. 

According to RTÉ News, he sold shares in medical technology company HealthBeacon on two occasions while in possession of inside information.

The transactions allowed Dalton to avoid losses of €21,800, the regulator found. He admitted the breaches and agreed to settle the case without challenging the Central Bank's findings.

His original sanctions totalled €87,200, made up of €21,800 that he had to repay through disgorgement and a separate €65,400 fine. 

A 30% discount was then applied to the monetary penalty under the settlement rules, reducing the amount payable to €67,580.

Regulator takes new approach to recovering gains

The case also marks the first time the Central Bank has used disgorgement as part of an enforcement action. 

The measure is designed to remove financial gains or avoid losses obtained through misconduct and restore fairness in the market. A standard fine serves a different purpose by punishing the breach itself.

Central Bank Director of Enforcement Karen O'Leary said using inside information to trade shares "is an abuse of the system and undermines the integrity of the market." 

She added that this was particularly serious when someone was in a position of privilege.

O'Leary also said the outcome demonstrated the regulator's "willingness to investigate suspicious transaction and order reports" and pursue cases through to an appropriate conclusion.

The investigation concerned Dalton alone. HealthBeacon and its other employees or representatives were not implicated.