Two bond specialists at Dresdner Kleinwort were today censured by the Financial Services Authority for insider dealing in notes issued by Barclays two years ago.

Director Darren Morton and vice president Christopher Parry were censured but neither was barred from working or fined by the regulator, which admitted its rules may not have been completely clear.

Head of enforcement Margaret Cole said: "Some market participants may, in the past, not have paid sufficient attention to their obligations in this area. Future offenders will be likely to face significantly more severe sanctions."

Morton and Parry were portfolio managers on a Dresdner structured investment vehicle that held $65 million of Barclays floating rate notes.

Morton was told by Barclays Capital at 10am one day that it planned a new issue of notes on better terms.

He told his boss Parry and the fund sold its entire $65 million holding to two buyers who complained when the new issue was announced that afternoon.

The FSA said the men had not profited personally from the deal and had undergone retraining. The pair fought against the FSA's findings.