View more on these topics

FSA given new powers to crack down on market abuse

Alistair Darling is set to give the FSA new powers to offer City whistleblowers lesser sentences or immunity from prosecution in return for information on market abuse.

In an interview with the Guardian, Darling indicated FSA investigators would be better able to prosecute market manipulators if they had plea-bargaining powers similar to those used by US regulators.

He said: “I can’t allow us to get into a situation where people quite deliberately manipulate markets for personal gain and with the potential to destabilise the financial system. We have a duty to ensure we have clean efficient markets. We will come down hard on people manipulating the system.

“People are getting away with it and the time has come for us to start looking at it again. If a handful of people are up to no good we have to make sure the authorities have the tools to do the job.”

The move comes after scaremongering in the City destabalised HBOS’s share price last week.

Liberal Democrat Shadow Chancellor Vince Cable says: “It is about time the FSA was able to take effective action to prosecute and curb criminal market abuse of the kind which destabilised HBOS last week. It has become apparent that, although it was possible to identify the people who benefited from HBOS short selling, the authorities were unable to gather sufficient evidence to bring a criminal prosecution. Failing to provide the FSA with the same whistleblowing powers as other agencies was clearly an oversight, which has been belatedly put right.”

Conservative Shadow Chief Secretary to the Treasury Philip Hammond says: “We support effective measures to tackle market abuse but this is a very minor initiative. Any regulatory response must be measured and careful, London has benefited enormously from over-regulation in other markets. It would be a tremendous own goal to respond to the current difficulties with ill-targeted and burdensome regulation as a knee-jerk reaction.”


Green banner no longer an excuse for mixed performance

More than half of the IFA community will no longer tolerate a performance lag from green funds according to research from Virgin Money.The research also found that 69 per cent of advisers feel green funds should be able to compete with all their rivals, despite being curtailed from investing in less environmentally friendly stocks such […]

Only 10% of advisers would opt to sell primary products

Just 10 per cent of advisers would consider becoming a primary adviser selling a limited range of products.In the YouGov/Money Marketing survey, 24 per cent of 582 respondents say they are not prepared to study to become a professional financial planner. Of respondents studying or considering studying for the chartered financial planning qualification, 58 per […]

100 More FSA staff to monitor banks

The FSA is expected to recruit up to an extra 100 staff to monitor the big banks in a bid to avoid another Northern Rock debacle. The FSA publishes the results of an internal investigation this week into how it handled the Northern Rock debacle.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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