At a Treasury select committee meeting last week, chairman John McFall, MP, asked Turner how committed he was to addressing the problem.
Turner said: “I have a very strong commitment to tackling market abuse. I think we all know it is a difficult thing to prove. Quite a lot of market abuse and insider trading throughout the world goes undetected because it is inherently difficult to detect and get prosecutions in that area but I think we need to increase the aggressiveness of the way we look at that issue.”
Turner was also asked if he would be looking at the role of credit-rating agencies. He said: “There is a proposal with the European Union as to whether we should get into the process of registering and overlooking rating agencies, so that will undoubtedly be on the list.”
McFall raised the issue of inherited estates, highlighting Prudential’s decision not to proceed with reattribution despite the select committee’s publication of a critical report on the subject. He called on Turner to give serious thought to the committee’s recommendations for a new regulatory framework.
The FSA is due to report back in the autumn on the matter.