The first criminal insider dealing cases brought by the FSA could be thrown out of court pending a legal challenge decision
LONDON – The UK Financial Services Authority’s (FSA) crackdown on insider dealing has been subject to a legal challenge. In particular, the case against Malcolm Calvert, a former partner at Cazenove stockbrokers, has been put on hold while a legal challenge raised by Calvert’s lawyers is decided.
The legal challenge concerns whether the FSA has the legal authority to launch prosecutions on its own without the consent of the director of public prosecutions or secretary of state. Calvert has pleaded not guilty to 12 counts of insider dealing.
Lawyers acting for Neel and Mathew Uberoi, charged with 17 counts of insider dealing, have also challenged the FSA’s case, this time claiming the regulator had not followed correct procedures or obtained consent.
Should the decision go against the FSA, these cases are likely to be thrown out. The FSA has claimed it has followed correct procedures and will appeal if the ruling goes against it.
The cases form part of the UK supervisor’s renewed efforts to crack down on market abuse and are the first criminal cases it has brought for insider dealing.
More on Regulation
ABA calls for better ways to compare bank capital between countries
US regulator will pursue a quicker route to exempt foreign CCPs
ECJ decision means new problems for data preservation
Discussion crystallises over regulatory streamlining
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.