Introduction
The UK Financial Conduct Authority (FCA) has secured convictions against Matthew and Nikolas West, two brothers who engaged in insider trading across multiple listed companies. The case highlights the regulator’s determination to pursue market abuse cases even where profits are modest by large-cap standards, reinforcing its zero-tolerance approach to insider dealing.
Case Background
Matthew West, a professional day trader, obtained inside information about several companies and used it to make profitable trades. His brother, Nikolas West, also engaged in trading activity after receiving confidential information from Matthew.
The companies involved included Proactis Holdings, Palace Capital, Concha, Bushveld Minerals and others.
The trades generated illicit profits of around £42,948, a relatively small figure compared to other recent insider dealing prosecutions, but enough to warrant a criminal investigation and subsequent convictions.
FCA Action and Sentencing
In April 2025, both Matthew and Nikolas pleaded guilty to six counts of insider dealing.
- Sentences:
- Matthew West received a custodial sentence.
- Nikolas West also received a custodial sentence, albeit shorter, reflecting his secondary role.
- Financial Penalties: The brothers were ordered to pay back a combined total of £280,000 in confiscation and costs.
The sentences underscore that insider dealing is treated as a serious criminal offence, regardless of the amounts involved.
Regulatory Commentary
The FCA emphasised that insider trading undermines market integrity, damages investor confidence, and creates unfair advantages. The West brothers’ case was deliberately highlighted to reinforce the message that all levels of insider dealing will be pursued, not just high-profile cases involving large sums.
This conviction forms part of a wider trend:
- Increased FCA scrutiny of smaller traders and brokers.
- Stronger enforcement against individuals operating outside of traditional corporate finance roles.
- Use of confiscation orders to strip offenders of illicit gains, even beyond the trading profits.
Implications for the Market
- Deterrence: The relatively modest scale of the profits shows that “small” cases will not escape enforcement attention.
- Culture of Compliance: Day traders, corporate brokers, and small-cap investors must all maintain robust awareness of insider trading rules.
- Signal to Market Participants: The FCA continues to demonstrate that market abuse enforcement is a priority and that even individuals without institutional positions will be held accountable.
Conclusion
The West brothers’ convictions serve as a clear warning: insider trading will be prosecuted with severity, regardless of scale. With regulators tightening their oversight of small-cap markets and corporate brokers, firms and individuals alike must ensure their compliance systems are watertight, their trading activities transparent, and their conduct above reproach.
