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FCA Charges Two Individuals with Insider Dealing

The UK's Financial Conduct Authority (FCA) has brought criminal charges against Bobosher Sharipov and Bekzod Avazov for insider dealing, alleging that Mr. Sharipov leaked confidential information about a potential takeover to his friend and business associate, Mr. Avazov, who then profited by trading on that information.

According to the FCA, Mr. Sharipov worked as an investment banker at Jefferies International Limited and was advising GCP Student Living Plc on a potential acquisition. The regulator claims that Mr. Sharipov disclosed inside information about the deal to Mr. Avazov, who then used that information to trade GCP shares and spread bets, generating nearly £70,000 in profits.

The FCA's market monitoring systems flagged Mr. Avazov's trades as suspicious based on the timing and profitability of the transactions. Further investigation uncovered the personal relationship between the two men, who were former colleagues and flatmates.

"We believe that Mr. Sharipov took advantage of his position so he and his friend Mr. Avazov could benefit through committing crime and gaming the system," said Steve Smart, the FCA's executive director of enforcement and market oversight. "The integrity and cleanliness of our markets rely on trust. It is right that this case is heard by the courts."

The case has been formally sent to Southwark Crown Court, with neither defendant indicating a plea at this stage. Jefferies has cooperated fully with the FCA's investigation.

Insider dealing is a serious offense in the UK, punishable by a fine and/or up to 7 years' imprisonment. The charges against Mr. Sharipov and Mr. Avazov underscore the FCA's commitment to maintaining the fairness and transparency of the country's financial markets.

The allegations come at a time of heightened scrutiny around market abuse, with regulators worldwide stepping up enforcement efforts to deter insider trading and other forms of misconduct. This case serves as a reminder to industry professionals of the consequences of misusing confidential information for personal gain.