Better the devil you know

29 March 2010 By Nicholas Paisner

The UK regulator is finally making progress in cracking down on market abuse. But it will be broken up if the opposition Conservative party wins the election. Though there is a case for rethinking supervision of banks, the Tories should leave the FSA’s enforcement division alone.

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The Financial Services Authority said on March 23 that it had arrested six men on "suspicion of being involved in a sophisticated and longrunning insider dealing ring."

Margaret Cole, director of the FSA's Enforcement and Financial Crime Division, said in a November 2009 speech to the British Bankers Association that the UK regulator had taken "steps to become a heavyweight criminal prosecutor."

The FSA won its first insiderdealing criminal prosecution in March 2009.

In a July 2009 policy white paper, the UK Conservative Party said it intended to "abolish the Financial Services Authority."

The Tories would give the Bank of England responsibility for the prudential regulation of UK banks. They would also create a new Consumer Protection Agency which would be given a "mandate to act as a genuine consumer champion." The party would "ensure that the regulator has all the powers it needs to pursue criminal cases."

Context News

The Financial Services Authority said on March 23 that it had arrested six men on "suspicion of being involved in a sophisticated and longrunning insider dealing ring."

The FSA won its first insiderdealing criminal prosecution in March 2009.

In a July 2009 policy white paper, the UK Conservative Party said it intended to "abolish the Financial Services Authority."

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