FSA warns frims to tighten security around deals
While progress had been made the process around deals remains sloppy as there are still too many people involved - FSA
The Financial Services Authority has warned investment bank and other
professional service firms engaged in deals to improve security around
information about the deals to prevent leaks.
The regulator warned that while progress had been made the process remained
sloppy as there were still too many people involved in deals.
However companies have defended their processes, saying it was difficult to
limit the number of individuals involved in a deal as they included a range of
services which ranged from secretaries who had to prepare documents, to
specialist advisers and information technology staff who required access to
compute systems, the Independent reported.
But the FSA remains unconvinced on the cost issue, saying it was ‘not
compelling’.
Firms also appear reluctant to carry out leak inquiries on account of the
cost involved, unless there is a basis by way of specific information linking
leaks to the release of information.