FSA swoops on suspected insider dealing ringEight people suspected of being involved in an insider dealing ring have been arrested in a dawn raid Dawn Raid
The action of a firm or investor buying a substantial amount of shares in a company (making it a target firm) first thing in the morning when the stock markets open. This is done by a stock broker acting on behalf of a company. across London and the south-east.
The swoop is part of an effort by the Financial Services Authority The Financial Services Authority ("FSA") is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. Its main office is based in Canary Wharf, London, with another office in Edinburgh. to get tough on insider dealing, the illegal trading on price-sensitive information not available to the wider market.
In a brief statement, the FSA FSA Financial Services Authority
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FSA Financial Services Agency (Japan) said the operation, the biggest of its kind in the UK, had involved 40 FSA staff, with back-up from officers from City of London police The City of London Police is the Home Office police force responsible for the City of London, including the Middle and Inner Temple. (The Metropolitan Police is responsible for the rest of London, excluding the railways and underground system, which are policed by the British . Search warrants have been executed in what the financial watchdog described as a "major ongoing investigation into insider dealing rings".
The eight individuals are all men aged between 27 and 48 and are understood not to work in any of the big banks.
In a speech last month, Margaret Cole Dame Margaret Isabel Cole, DBE (May 6, 1893 - May 7, 1980) was an English socialist politician.
Daughter of John Percival Postgate and Edith Allen, Margaret was educated at Roedean School and Girton College, Cambridge. While at Girton, through her reading of H. G. , the director of enforcement at the FSA, said the regulator intends "to be bolder and more resolute about proceeding with market abuse and insider dealing cases so that we can actually bring about a change in the culture of the City".
She admitted the threat of civil fines had not been a strong enough deterrent and signalled a shift to more criminal prosecutions. "If people have to go to prison for us to achieve that aim then that's what we are prepared to do."
The maximum prison sentence for insider dealing is seven years, and those found guilty are also liable to an unlimited fine. The FSA has had powers to prosecute insider dealing through the criminal courts since 2001 but has only begun using those powers this year. It has brought three criminal prosecutions for insider dealing so far since January.
Insider dealing is notoriously difficult to prove and is thought to be rife in the City. Recent figures from the FSA show unusual share price movements ahead of almost 29% of takeover announcements last year.
The FSA has beefed up its criminal prosecution team from 12 to 30 staff and has asked the government for powers to allow suspects to plea bargain plea bargain n. in criminal procedure, a negotiation between the defendant and his attorney on one side and the prosecutor on the other, in which the defendant agrees to plead "guilty" or "no contest" to some crimes, in return for reduction of the severity of the , copying the American system The term American System can mean one of the following:
Former Cazenove partner Malcolm Calvert last week appeared before Westminster magistrates on charges of insider dealing between April 2003 and March 2005.
Calvert, who retired from Cazenove in 2000, is charged with receiving inside information before buying shares in companies including HP Bulmer, and Johnson Group. Calvert, who indicated he would plead not guilty, was remanded on bail.
Halifax Bank of Scotland Bank of Scotland plc is a commercial and clearing bank, based in Edinburgh, Scotland. With a history dating to the 17th century, it is the oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to chairman Lord Stevenson told investors last month that the UK "is exceptionally bad at dealing with white-collar crime white-collar crime, term coined by Edward Sutherland for nonviolent crimes committed by corporations or individuals such as office workers or sales personnel (see white-collar workers) in the course of their business activities. " after the FSA failed to discover any evidence of manipulation after a 17% one-day fall in the bank's share price.