But in the end a harder approach is unlikely to end insider dealing
and other financial fraud as a regular occurrence.
The news comes just weeks after the FSA revealed it suspected nearly a quarter of all merger and acquisition activity in the UK involved some form of insider dealing
. The FSA also pledged a crackdown on market abuse at the end of last year, with four specific deals being investigated.
Sally Dewar, managing director of wholesale and institutional markets, said: "Market misconduct, particularly in the form of insider dealing
and market manipulation is, put simply, cheating and reduces investor confidence in the UK markets."
The key question submitted was whether insider dealing
is deemed to exist from the mere fact that a person in possession of privileged information trades on the market in financial instruments to which that information relates or whether it is necessary, in addition, to establish that that person has knowingly used' that information.
The Belgian courts then asked the EU Court of Justice to provide an interpretation of Directive 2003/6/EC on insider dealing
and market manipulation.
Martha Stewart arrives at a Manhattan federal courthouse as her trial for insider dealing
TYCOON George Soros went on trial yesterday for an alleged pounds 8million insider dealing
The mere fact that an individual who is in possession of privileged information acts with knowledge of the information is enough to comprise insider dealing
', which is condemned by EU law.
It is the FSA's job to make sure any information which could affect a company's share price is reported through the financial markets first, to prevent insider dealing
The reports concern the following pieces of legislation: Capital adequacy of investment firms and credit institutions; Supervision of credit institutions, Insurance undertakings and investment firms; Insider dealing
and market manipulation; Prospectus on securities; Markets in financial instruments (MiFID); the Taking and pursuit of the business of credit institutions; Transparency requirements in relation to information about issuers of securities and Life assurance.
GARY Smith, chief executive of film distributor Winchester Entertainment, has been cleared of insider dealing
after flogging pounds 592,000 worth of his own shares in the group just two weeks before a profit warning.
Whilst nobody has yet spoken openly of insider dealing
, the Commissioner is nevertheless keen to determine whether "all information that might have influenced the market was handled appropriately in line with internal market principles".