FCA investigates Carillion allegations of insider trading

FCA chief Andrew Bailey told the House of Commons work and pensions select committee that the watchdog would be analysing the “timelines and content” of financial updates that Carillion had carried out just before its collapse in January 2018.

The regulator will investigate whether statements made by the company were “false and misleading”.

He also said: "We are aware of allegations of insider trading in Carillion's shares prior to its trading update on July 10 2017 and are looking into them."

Insider dealing or trading is an illegal practice where a person could use confidential information for their own financial benefit through share trades.

According to the Guardian, the FCA still has to agree whether the allegations could form the basis of a formal investigation but the director said they had made “good progress” after multiple meetings and interviews with senior Carillion staff and shareholders.

Carillion collapsed in January, putting thousands of jobs at risk, following a string of profit warnings as a series of bad contract decisions led to a ballooning debt pile.