Richard Burger and Emma King examine the initial impact of the FSA as the lead prosecutor of insider dealing
In late January 2008 two individuals appeared at City of London Magistrates’ Court charged with insider dealing contrary to s 52 of the Criminal Justice Act 1993 (CJA 2003). Such prosecutions are infrequent and therefore attract attention, however, what made this case even more of interest was that it represents the first ever prosecution by the Financial Services Authority (FSA) for insider dealing (“FSA steps up insider dealing offensive” NLJ, 1 February 2008, p 160).
Although historically prosecuted by the Department of Trade and Industry (DTI) (now the Department for Business, Enterprise & Regulatory Reform) and the Serious Fraud Office (SFO), the FSA is now recognised as the lead investigator and prosecutor for insider dealing. Recently the FSA has made cold-calls to investors and traders requesting information, under caution, on specific trades and the reasons behind these trades.
Section 402 of Financial Services and Markets Act 2000 (FSMA 2000) provides the FSA with power to prosecute insider dealing as well as breaches of