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FSA receives new power to combat market abuse

United Kingdom
15/07/1998
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On 6th May 1998, Alastair Darling, Chief Secretary to the Treasury, announced new powers to enable the FSA to tackle market abuse and financial crime. These will be included within the Financial Services Reform Bill.

The proposed package includes:

  • the power to prosecute cases of insider dealing, market manipulation and breaches of the Money Laundering Regulations;
  • the power to levy fines;
  • a new civil regime for combating market abuse;
  • a Code of Market Conduct, whereby the FSA can set out unacceptable market behaviour;
  • rule making powers in relation to money laundering systems; and
  • the creation of a single tribunal to consider appeals against the FSA's use of these new powers.

It is intended that these powers will complement, rather than replace, existing criminal defences and jurisdictions in these areas. The introduction of a new civil regime to combat market abuse is important, as it means that the FSA will be able to impose a fine on any person or firm, regulated or not, who engages in market manipulation or abuse.

There will be no limit to the level of fines.

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