FSA to have new market abuse powers
The UK Financial Services Authority (FSA) will receive new powers for countering City crime, according to chancellor Alastair Darling
LONDON – The UK Financial Services Authority (FSA) is to be given new powers to combat market abuse – including the granting of legal immunity to informers, according to the government’s chancellor of the exchequer Alastair Darling.
Darling, who made the remarks in a newspaper interview, said the plans follow false rumours spread about the finances of Halifax Bank of Scotland (HBOS), leading to a 17% reduction in the British bank’s share price.
“There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling,” said an FSA statement last week.
The reforms would give the UK financial watchdog powers similar to those of the US Securities and Exchange Commission (SEC) but denied to UK financial authorities for years.
The FSA and SEC employ similar numbers of staff – 2,740 and 3,500 respectively – but whereas half the total at the SEC work in law enforcement, the figure at the FSA is only about 200.
In addition to the HBOS rumours, recent rogue trader scandals at French bank Société Génerale and Bermuda broker MF Global have highlighted the huge risks of financial crime.
In London, investment bank Lehman Brothers recently launched an investigation into irregularities by equity traders, while City confidence remains shaken in the wake of the bungled Northern Rock bail out.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Dutch regulator in new push on algo manipulation
AFM teams up with Oxford Uni academics to develop data models that will identify “harmful” collusion in automated trading
Fed relief plan for G-Sib agency clearing welcomed
Rollback may revive interest in European FCM model, as principal clearing still treated punitively
Indian initial margin launch brings operational headaches
Conglomerates with multiple entities trading derivatives pose compliance challenges for dealers
Fed’s new liquidity rule spells more pain for regional banks
Limit on HTM assets follows move to deduct unrealised losses from capital buffers
Ruled out: can regulators settle the pre-hedging debate?
Market participants are at odds over the practice and whether regulation or principles can settle the score
SEC streamlines overhaul of stock trading rules
Tick size and access fee rules simplified from first draft, but Peirce still questions rationale
Supervisors use generative AI to tame ‘chaotic’ data
Officials merge credit databases with unstructured reports to sharpen bank oversight, explains Banco de España ex-deputy
EU banks fear loss of NSFR repo relief
European Commission must decide by next June; other jurisdictions adopted softer calibration