A hedge fund manager who overpriced his holdings to cover losses has been fined £35,000 and banned by the City watchdog in the first of what could be a string of similar cases.

The Financial Services Authority said Loic Albert Antoine Montserret, a former portfolio manager at BlueCrest Capital Management, had deliberately overpriced four of his trading positions in April 2008, which led to the fund being briefly overvalued by $8.6m.