The FSA has published a speech given by Margaret Cole (Director of Enforcement, FSA) to the American Bar Association. The speech was entitled The FSA’s approach to insider dealing. In her speech Margaret Cole states that the FSA takes market abuse (including insider dealing) very seriously and views it as a risk to its statutory objectives. She also states that the FSA believes that prevention is better than cure and that it expects market participants to conduct themselves properly including:
- Appropriate and effective systems and controls in the form of robust internal procedures.
- An insider list that is as short as possible and based on need-to-know.
- willingness to undertake a thorough internal review following a leak.
- Effective and targeted training of staff including support staff.
- Monitoring of staff personal account dealing.
- Robust controls when dealing with third parties.
- Effective information technology controls.
- An awareness of the limitation of code words as an effective tool to keep information confidential, especially if used in isolation.
Mrs Cole also mentions that where prevention does not work the FSA is mainly focussing its efforts on its key priorities which are:
- Insider dealing by City or business professionals who abuse positions of trust by misusing information legitimately passed to them for them to perform their jobs.
- Repeat offenders, where the FSA suspects systematic trading on inside information.
- Cases where there is significant profit made or loss avoided.
View The FSA's approach to insider dealing, 4 October 2007