| |

Management: UK's FSA fines companies for failing to have systems to detect market abuse

BIScom Subsection: 
Author: 
Editorial Staff

The UK's Financial Services Authority has fined Credit Suisse, Getco Europe and Instanet Europe for failing to put in place measures to aid the FSA in identifying possible market abuse.

Credit Suisse (£1.75m fine), Getco Europe Limited (£1.4m) and Instinet Europe Limited (£1.05m). Credit Suisse is a bank, Getco is a market maker trading on electronic markets, and Instinet is an agency broker.

The FSA said

"All three firms were found to have committed multiple breaches that resulted in failures to provide transaction reports promptly and correctly to the FSA.

"Instinet was also found to be in breach of FSA Principles as the firm did not have adequate systems and controls in place to meet the transaction reporting requirements and failed to take adequate steps to review its processes and the accuracy of its transaction report data.

"Each firm could have prevented the breaches by carrying out regular reviews of its data. Despite repeated reminders from the FSA during the course of 2007 and 2008, none of the firms did this."

Last month, outgoing FSA CEO Hector Sants said "There is an unacceptable level of market abuse in the UK. We need to fix that."

Since then the FSA has been on a spree of enforcement actions - both new and bringing cases to a conclusion. But if one looks at a scorecard then Australia's ASIC is probably leading, ahead even of the USA's SEC.

---------------- Advertising ---------------- World NomadsTravel Insurance | | Singapore Airlines --------------------------------------