The Financial Services Authority (FSA) has announced that it is cracking down on insider dealing. The FSA, which levied fines of more than £28 million in the year to 31 March 2009, is appointing 30 new inspectors and tripling the level of fines it can levy.
Individuals can face fines of up to £100,000 for insider dealing and companies fines of up to £50 million.
Insider dealing is also a criminal offence, which means that the Proceeds of Crime Act 2002 (POCA) applies. Under POCA, assets which are derived from criminal activity can be confiscated.
Insider dealing is often considered to be a victimless crime, but the FSA takes a very serious view of transgressions.
Partner Note
See Financial Director, 9 July 2009 at http://www.financialdirector.co.uk/.