FSA plans to tape traders calls
Written on November 14, 2010 by Milton Reyes
The Financial Services Authority (FSA) has said they are planning to tape mobile telephone calls made by traders at banks and brokerage houses in an attempt to cut down on insider trading, it has emerged. The move is part of the FSAs efforts to prevent the crime after criticisms about its lack of effort in prosecuting market abuse.
The financial regulator is set to introduce a range of new rules in the next few months, and it is expected that it will target cell phones used for business by employees of banks and brokerages. Earlier in the year, the FSA said they intended to cover about 22,000 in the new rules.
The FSA has convicted six people of insider trading since March last year, including Malcolm Calvert, a former partner at Cazenove, part of JPMorgan Chase, who served around a third of his 21-month sentence before his release this year.
A recent case in the US involved evidence using taped cell phone conversations, where Raj Rajaratnam, the chief executive officer of Galleon Group, is facing charges of insider trading.
Margaret Cole, enforcement chief at the FSA, has stated “We continue to work to keep undesirable people out of our financial services industry. We use information and intelligence from a range of sources to consider whether those who own or run financial firms, as well as people in sensitive roles within those businesses, are fit and proper.”
Similar Posts:
- Sure Bet: How Wall Street is Dodging the Volcker Rule
- Regulator gives banks deadline to fix foreclosure process
- Green Shoots at Last: Small Business Lending Finally Starting to Thaw
- How Local Judges are Putting the Feds to Shame in Halting Improper Foreclosures
- Mortgage providers call on the FSA to amend plans to restrict lending
