FSA insider dealing cases under threat
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.
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
Can vendors and CTAs escape the CFTC’s clutches?
Withdrawal of Sef perimeter advisory may provide greater flexibility for new breed of crypto tools
Fed succession planning: will Trump stick to the script?
The race to succeed Jerome Powell as head of the world’s most powerful central bank has already begun
Japan regulator calls on laggards to keep Basel promise
After EU and UK delays – and amid fears of US divergence – Japan is keeping a close eye on its peers, says Shigeru Ariizumi
For Esma to triumph as supervisor, it must stop being Esma
Europe’s markets watchdog may soon have sweeping new powers, but experts say it will have to shed its reputation as slow, expensive and process-driven if it is to succeed
Industry warns EU not to imitate US equity market rules
Adopting a US-style equity order protection rule will hinder, not bolster EU markets, groups say
US banks’ VAR shortfalls are wrapped in a black box
Public disclosures only allow crude approximations of loss size and timing
Esma official insists CCP model approvals will speed up
CCP supervision chief says regulator is seeking more human resources for its new responsibilities
Esma still open to minimum thresholds for onshore clearing
Final active account rules ease reporting burden, but no guarantees on outcome of 2026 review
