Steven Harrison, who worked at Moore Credit Fund at the time of the illegal trades, was found by the financial regulator to have improperly benefited from the financial restructuring of French chemicals firm Rhodia.
On September 26th 2006, the fund manager found out that the firm would be looking to buy back some of its bonds as part of its corporate shake-up, and therefore advised a colleague to purchase some.
When Rhodia came to purchase these bonds, Moore Credit made a profit of around $72,000.
Despite this benefit, the Financial Services Authority (FSA) ruled that Mr Harrison did not know that his insider information was not in the public domain when he encouraged his colleague to buy the bonds.
Therefore, he has not been given the regulator's maximum fine.
Margaret Cole, FSA director of enforcement, said: "Hedge fund managers and people in similar roles are often legitimately provided with inside information in the course of their business.
"The FSA expects people entrusted with such responsibility, in the credit markets as much as in any other regulated markets, to observe high standards of conduct and not to take advantage of their privileged access to inside information."