The FCA is also looking at the timing of the firm鈥檚 profit warnings
The Financial Conduct Authority has confirmed it is looking into claims of insider dealing at Carillion.
The financial watchdog has written to MPs running the inquiry into the circumstances behind the collapse of the contractor in January this year.
In its letter it said: 鈥淥ur investigation is into the timeliness and content of the firm鈥檚 announcements. Our primary focus Is to determine whether the matters announced in Carillon鈥檚 trading update on 10 July 2017 were identified and announced at the appropriate time.
鈥淲e are also considering whether earlier announcements made by Carillon were false or misleading as a result. This includes Carillon鈥檚 拢845m contract provision as well as Carillion鈥檚 revised expectations as to revenue, profit and debt levels that were also announced on 10 July.
鈥淥ur investigation currently covers potential breaches of the Market Abuse Regulation, Listing Rules and Listing Principles. We are aware of allegations of insider trading in Carillion鈥檚 shares prior to its trading update on 10 July 2017 and are looking into them.鈥�
The FCA鈥檚 statement came as a response to a letter from the inquiry鈥檚 co-chair Frank Field who wrote to the Cabinet Office, former Carillion chairman Philip Green and the authority about information published in the National Audit Office鈥檚 report on Carillion, published earlier this month.
The report revealed that among Carillion鈥檚 requests for support from the government in the weeks before it was forced to apply for bankruptcy it had asked for 鈥減rotection from the imposition of fines or penalties by regulators for actions taken by the company before July 2017鈥�.
The 31 December 2017 request, which was withdrawn a week later, would have meant the company had immunity for any breaches of The Pensions Regulator, the Financial Reporting Council or FCA regulations.
Field asked the Cabinet Office, Green and the FCA about the request, plus whether such requests were normal and how they were handled.
Green鈥檚 response claimed the lenders Carillion was trying to secure some last ditch financing from had insisted the contractor put the request to government as a condition of any potential further lending.
The FCA鈥檚 said the request was never passed on to it, but that it would only rarely and in exceptional circumstances alter the sanction it applied as a result of an investigation.
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