FSA triples fines to stamp out insider trading
Financial Services Authority to crack down on insider trading by enforcing higher fines and hiring nearly 300 extra staff
The Financial Services Authority is to triple the level of fines given to
both individuals and companies as the regulator tries to crackdown on insider
trading.
Individuals found guilty of insider trading can expect to see fines of
£100,000 while companies could be hit by a crippling 20% of the income they make
from the relevant product or activity or as much as £50m under the tougher
plans,
The
Telegraph reported.
‘By hitting companies and individuals in the pocket where it hurts, the fines
will be a stark warning to others on what they can expect to pay for flouting
our rules’ said Margaret Cole, director of enforcement at the FSA.
The FSA, which hopes to recruit a further 30 staff to swell its numbers to
320 in order to make the further investigations, racked up a total of £28.4m in
fines to the year 31 March 2009 a substantial rise from the £4.5m total the
previous year.
Further reading:
FSA reveals next stage in ‘radical’ overhaul