The financial crisis has called attention to some unsavoury market abuse practices such as traders taking advantage of insider knowledge in order to make an extra euro. But times are changing: the EP's economic and monetary affairs committee supported on 9 October the introduction of jail time for the most serious offenders. British Labour MEP Arlene McCarthy, responsible for steering the legislation through European Parliament, explains why.
It seems that financial regulators can't keep pace with all the innovations that allow firms to profit from dubious practices. How does the market abuse directive remedy the problem?
The real lesson to be learnt from the global financial crisis is the need to focus on putting in place rules and sanctions to prevent crises and not scrambling and reacting after the banks have yet again undermined people’s confidence and trust in the markets.
See full Article: http://www.europarl.europa.eu/news/en/headlines/content/20121012FCS53542/3/html/Insider-trading-No-safe-haven-for-those-intent-on-committing-abuse
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