U.K. regulator Financial Services Authority disciplined yet another top player in financial securities, this time targeting the c at Credit Suisse.  Kicholas Kyprios, who remains in his London-based role with the bank, will have to pay £210K ($329K) for having disclosed confidential client information.  Mr. Kyprios also lost 50% of his 2011 bonus for his role in the improper market conduct, according to a person with direct knowledge of the matter. The Financial Services Authority has been cracking down on market abuses and misconduct in recent months.  A month or so ago, money manager David Einhorn and his hedge fund, Greenlight Capital, were fined $11mn for allegedly using confidential information to trade in the stock of a British pub chain. Mr. Kyprios' Alleged Misconduct. In 2009, international cable operator Liberty Global was engaged in a takeover of Unitymedia, a German cable network.  Credit Suisse acted on behalf of Liberty Global, which financed the deal in part through a €2.5 billion bond issuance.  Mr. Kyprios was responsible for marketing the bond issue to potential investor. In course of the offering, Kyprios received confidential information about the deal - and was instructed not to disclose the information to 3rd parties.  Yet, according to FSA, Mr. Kyprios provided market-sensitive information during a phone call with a fund manager - by playing a guessing game that included telling the manager he was “getting warmer” when Mr. Kyprios was asked about details of the bond issue. The fund manager apparently asked the right questions because he was able to get sensitive information out of Kyprios about the proposed takeover - including the potential rating of the new issuance, and that the bond was to be announced the next day.  In effect, Kyprios crossed the line as to what he was permitted to say.

“Kyprios’ conduct in trying to push to the limit what he could say resulted in him crossing the line.  His behavior was well below the standards we expect of senior market professionals who we should be able to rely on to uphold the system rather than seek to get round it.” -- Tracey McDermott, FSA Acting Director of Enforcement and Financial Crime, said in a statement.

To his benefit, Kyprios didn't have a premeditated intention to disclose the confidential information, according to the FSA.  And, he qualified for a 30% discount on the original fine by agreeing to settle at an early stage.    [DealBook, 3/13/12].