The UK Financial Conduct Authority (FCA) has initiated criminal proceedings against Bobosher Sharipov and Bekzod Avazov for insider dealing.

Mr Sharipov worked at investment bank Jefferies International Limited and advised GCP Student Living Plc (GCP) on a potential takeover. Mr Sharipov is charged with leaking confidential inside information about the takeover to his close friend and business associate, Mr Avazov.

Mr Avazov is alleged to have used that confidential inside information to trade in GCP shares and spread bets to make a profit of almost £70,000. The alleged offending took place in 2021.

The FCA’s specialist market monitoring systems identified Mr Avazov’s trades as suspicious given the timing and profit. FCA analysis of public records uncovered that Mr Sharipov and Mr Avazov were former colleagues and flatmates.

The case was formally sent to Southwark Crown Court. Neither defendant indicated a plea.

Jefferies has co-operated fully with the FCA’s investigation.

Insider dealing is punishable by a fine and/or up to seven years’ imprisonment for offences that occurred during the period of these alleged offences. For offences committed on or after, 1 November 2021, the maximum sentence for insider dealing is a fine and/or up to 10 years’ imprisonment.