The majority of financial services practitioners believe the FSA is losing the fight against insider dealing, despite its recent spate of enforcement action on financial wrongdoing, a Chartered Institute for Securities & Investment Institute (CISI) survey shows.
Of those who responded, 60% feel the FSA is failing to make serious inroads into the crime. However, 40% think it is winning the war on those who profit from confidential information.
Comments from those taking part included:
“The FSA still has a long way to go and should seek Government approval for
bigger penalties and zero tolerance.”
“There is so much speculation about bids before they are officially announced
that it’s obvious that insider trading is prevalent.”
“The FSA has put down a marker to insider traders, but the ones they have
caught so far have been arrogant and naive. There are more out there who are
more sophisticated and will be far harder to catch.”
“The current publicity will frighten off a few faint hearts – most will
regard the risks as worthwhile.”
The FSA recently charged seven people with 13 charges in respect of conspiracy to deal on inside information obtained from two major investment banks and secured its fifth sentence of imprisonment for insider dealing.
To take part in the latest CISI survey, visit cisi.org
