The private investor bought shares on behalf of a businessman, the FSA found.
A Belgian investor has been hit with a massive fine from Britain's City regulator, the Financial Services Authority (FSA).
Erik Boyen, investing privately, was found by the watchdog to have benefitted from insider information while trading in shares of London-listed Monterrico Metals. He was fined a disgorgement of profit of £127,254 and an "additional penalty" of another £49,000 - bringing the total to £176,254.
Were it not for the fact that the investor settled early, the FSA said, this penalty would have been higher - pushing the total fine towards £200,000.
The illegal trades were perpetrated in early 2007, when ex-executive chairman of Monterrico Richard Ralph asked Filip Boyen - the brother of Erik - to buy shares in the firm. At the time, Monterrico was locked in takeover talks, secret details of which Mr Ralph was acquainted with.
Filip Boyen then asked Erik Boyen to purchase the equities, which he did. The FSA said that, as an "experienced investor", Erik Boyen was also aware of the takeover discussions.
Commenting on the case Margaret Cole, director of enforcement at the FSA, said: "Erik Boyen used inside information to gain an unfair advantage over other market participants in order to make a substantial profit. Such abuse could damage investors' confidence in the UK financial markets.
"The fines given to all three individuals in this case show our determination to take action against everyone involved, when inside information is misused."
