View more on these topics

FSA finds no proof of share manipulation

The FSA says it has not uncovered evidence that market rumours over HBOS were part of a concerted attempt by individuals to profit by manipulating the share price.

The news comes as the FSA’s markets division launches a review of the systems and controls that firms have in place for dealing with market rumours.

The regulator’s investigation, which was conducted by its enforcement, markets, supervision and intelligence division, found that while the rumours would have had some impact on HBOS’ share price, there was no evidence of wrongdoing.

On March 19, rumours circulated alleging that the bank faced funding difficulties. 


Some market commentators speculated that the fall in the HBOS share price was the result of unscrupulous traders who spread false rumours to make unjustified profits.

The FSA’s review of firms’ systems and controls for dealing with rumours will cover what policies are in place, how firms ensure compliance with them and how rumours are verified. It will examine whether traders are permitted to pass on or trade on rumours and how firms ensure that staff do not initiate or spread false rumours.

The regulator says: “This exercise is covering a range of investment banks, securities firms and hedge fund managers. We will communicate our findings to the market in the early autumn.”

Recommended

Investors flow out of offshore

Retail sales of offshore funds saw outflows of 164.7m in June and the total of offshore funds under management fell by 6 per cent compared with the previous month.

Bonds have more funds

The torrid time for equities has by and large continued. The UK market has recovered from the losses of three weeks ago but we have seen some really vicious sector rotation, causing problems for equity managers.

Defining moment

For those of you who have been eagerly awaiting the outcome of the review of the IMA’s fixed-income sectors, the wait is over.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com