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FCA reveals 28% surge in ‘suspicious transaction’ reports

The number of suspicious transactions reported to the FCA has increased by 28 per cent in its first year in operation. 

Data obtained from the regulator by law firm Pinsent Masons through a Freedom of Information request shows the number of suspicious transaction reports rose from 1,099 in 2012/13 to 1,409 in 2013/14.

Suspicious transactions are those where there are reasonable grounds to suspect market abuse, such as insider dealing or market manipulation.

It has been a requirement of the Market Abuse Directive since 2005 that firms seeing suspicious transactions must report these to the regulator.

The data shows the number of reports has risen steadily over the past five years.

Pinsent Masons senior associate Michael Ruck says: “The FCA has definitely upped its game regarding the profile of its insider dealing and market abuse enforcement action. 

“The fear factor from this action and the current high profile markets investigations may be one reason to explain the rapid rise in suspicious transaction reports over the last few years.
“Firms and individuals are now far more cautious and making a suspicious transaction report affords them some peace of mind that the regulator won’t be knocking down their door following a tip-off from another source.
“Firms need to be fully up to speed on their reporting requirements and the current approach of the regulator.”


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