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Watchdog 'failing to root out insider dealing'

Published on 23 Apr 2010 under category: legal

The financial services watchdog is currently failing in its attempt to cut out insider dealing from the industry, claims a new survey.

Professionals in the industry believe that the Financial Services Authority (FSA) has been unsuccessful so far – despite several high-profile investigations and convictions this year.

The Chartered Institute for Securities & Investment (CISI) found that over half (60 per cent) of respondents consider the watchdog to only be skimming the surface.

According to the research, those surveyed felt that that there was still much illegal activity going on and that the deterrents are unsubstantial.

One worker polled by CISI said: "The FSA has put down a marker to insider traders, but the ones they have caught so far have been arrogant and naive.

"There are more out there who are more sophisticated and will be far harder to catch."

The watchdog announced last year that it was planning to end endemic levels of insider dealing in the financial services industry.

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