FSA leaves grey areas in market abuse controls
The Financial Services Authority will set up a new market abuse regime next year, but with the proposals on the table, City lawyers doubt that it will make their lives, and those of their clients, any easier. By Richard Tyler
Next month the UK's Financial Services Authority (FSA) will bring to a close almost three years of heated debate on the country's new market abuse regime. So far its bright young policy advisers have had a torrid time trying to win over the City's great and good to the proposed reforms and there is no reason to believe that their lives should get any easier as the deadline for comments draws near.
Causing the most trouble are some of the City's most respected lawyers, who are questioning the FSA's proposals as they attempt to clarify and quantify what all the upheaval actually means to them and their clients.
Under the Financial Services Act, the FSA has the statutory power to monitor all market activity in the UK and to turn over those individuals and Wrms it believes are guilty of insider dealing or market abuse to an independent tribunal.