Standards & Guidance
FSA considers tougher insider dealing controls
The UK's Financial Services Authority (FSA)
is undertaking a review, in consultation with the
Takeover Panel, of the
controls over insider information in relation to company takeovers.
A FSA report
released in March last year revealed that insider trading may have taken place
before about one-third of takeover announcements in 2004. The FSA's inquiry is
looking at a small number of deals where information has leaked and involves
discussions with all the key parties to the deals such as lawyers, the advisers
and PR firms. These deals will be compared with those where information did not
leak.
The FSA said in a recent
newsletter
that it wanted to increase its understanding of how information is controlled
and consider ways to tighten the flow of information. The findings of its review
are due to be published in the spring.
Jeremy Warner, in The Independent
(19 December) was not optimistic that the FSA would be able to curb insider
dealing saying that while everyone knows it is still rife in the City successful
prosecutions remained rare. Lombard in the Financial
Times (20 December) said it had to be hoped that the FSA would produce
guidance for companies and advisers that would be as effective at preventing
leaks as the Panel was at dealing with the consequences of them.
Links
Financial Services Authority
Takeover Panel
Measuring Market
Cleanliness
Market
Watch
The Independent
Financial Times
January, 2007 |
