This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

FSA calls for tougher insider trade penalties

  • Print
  • Comments (3)

The FSA has called for tougher insider trading sentences and changes to discount guidelines to move the UK closer to the US model, according to the Financial Times.

FSA interim head of business conduct Margaret Cole has urged the Government to increase the maximum sentence for insider dealing from seven to 10 years.

Cole says: “A longer sentence is important because a lot of enforcement work is about sending messages that this is serious to disincentivise people from doing it.”

She adds: “We have a different dynamic from the US system where people are incentivised by the sentences to come forward.”

Cole said the FSA’s position was weakened by sentencing guidelines that give the same discount, one third off, to defendants who plead guilty early and those that wait until the day of trial.

“We would welcome an increase in the maximum sentence as well as a clearer and more effective application of the discount for guilty pleas. The [current rule] doesn’t seem right. It doesn’t incentivise early pleas,” Cole says.

  • Print
  • Comments (3)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Readers' comments (3)

  • How about penalties instead of rewards for failures on the part of the regulator?

    Unsuitable or offensive? Report this comment

  • 10 years??? You don't get that for most crimes of violence. Proportionality would be good, for a change.

    The woman is drunk with her own importance and oblivious to the damage she and her senior colloeagues are still inflicting on the economy.

    Unsuitable or offensive? Report this comment

  • Norm, I would point out that this change would bring insider dealing back into line with the penalties for fraud since the introduction of the Frand Act 2006. It actually seems to be a rational and sensible suggestion.

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


Do you see the value in adviser trade bodies?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments