The FSA attacks insider traders
The Financial Services Authority (FSA) has this evening launched a heavy attack on the U.K.'s investment banks, lawyers and accountants accusing them of failing in their duty to stop employees using privileged information. The FSA has for some time been looking at ways and means of reducing "insider trading" which has been a bugbear of the regulator for many years. The recent civil action against two convicted insider traders seems to have given the project more impetus and further actions are expected in the short to medium term.
However, the FSA is looking to tighten internal regulations regarding the investment community and also introduce formal internal investigation guidelines. It would appear that the regulator has grown tired of the way in which fingers are pointed at each and every party in many takeovers and corporate activities without any one person or any one company taking overall responsibility. While many people consider insider trading to be a victimless crime, there are substantial illegal profits being made in this way which have a knock-on effect to other investors and the wider economy.
It will be interested to see if the FSA is able to take tighter control of potential insider dealing activities and bring more alleged traders to justice.
Share this..
Related stories
Darling hints at further rescues
The economy could need another government stimulus package, the chancellor of the exchequer has admitted.In an interview with the Observer, Alistair Darling said that the move would likely be made if the £20 billion recession-busting plan outlined in the pre-Budget report last week failed.The plan included a cut to VAT, which comes into effect today - along with a big expansion of public works pr...
Read MoreIs the UK corporate property sector turning?
News that the China Investment Corporation has invested around £800 million into Songbird, the company which owns Canary Wharf, has been welcomed by many investors as a potential turning point for the UK corporate property sector. The £800 million deal is by far and away the largest in the sector for some time and the fact that Chinese investors appear interested in UK property again is certainl...
Read MoreUK credit card industry struggles
As you might expect given a recession, the UK credit card industry is continuing to struggle with more and more people taking a sensible approach to the finances and resisting the temptation to rack up yet more debt. Datamonitor has issued a report suggesting that the UK credit card market will fall by 2.7% this year before returning to the growth path with an increase in use of 2.5% in 2011. H...
Read MoreDSG International reports record Christmas sales
DSG International (the owner of the Dixons, Currys and PC World product brands) has today revealed record Christmas trade with like-for-like sales up 8% on the same period last year. After a couple of disappointing retail trade updates over the last few days it seems that we are back on to the positive path with the DSG International reporting sales of a TV and computer every two seconds in the 12...
Read MoreLloyds bank in talks to sell Scottish private client broker
Lloyds bank is rumoured to be in talks with Rathbone Brothers regarding a disposal of the company's Scottish private client fund management division. Originally the Bank of Scotland portfolio management service, this division is now a non-core asset of the business and with cash now king for Lloyds bank it seems that now is the time to dispose of the operation.
Those close to the ta...