FSA targets insider dealing

There is no doubt that the Financial Services Authority (FSA) has recently increased surveillance and prosecutions in the area of insider dealing and today's announcement that 460 additional members of staff will be brought into this area has been welcomed. While you may be forgiven for assuming that the UK is rife with insider dealing, compared to other overseas markets, there is no evidence to suggest the UK is any worse or any better than overseas markets. However, this has not stopped the FSA for beefing up its insider trading operation and looking to secure more prosecutions in the short, medium and longer term.

While many people automatically assume there are no victims of insider trading this is not the truth as it does impact upon market sentiment, market reputation and ultimately for every seller there needs to be a buyer, so there is a downside to insider trading. That is aside from the fact that insider trading is illegal and has been for many years, despite few criminal prosecutions in years gone by.

However, there is no doubt that the FSA has responded positively to the ever-changing financial environment in the UK and around the world and while Hector Sants will be stepping down as the authority's chief executive this summer he will certainly leave it stronger than when he joined the authority.