Co-Authored by Tim Flood and Bruce Lincoln
Enforcement levels post- N2
More than a year after N2, the anticipated headline market abuse cases have not materialised. It is the Market Integrity Group (MIG) of the FSA’s Enforcement Division which is responsible for handling market abuse cases. Apparently, between 15-20 investigations were opened last year and 20-30 are active (including pre-N2 cases). However, between 5-10 have progressed to the Regulatory Decisions Committee and 60-70% of MIG’s workload is said to be insider dealing related.
To date, only one case in the Enforcement Division (which in total comprises approximately 180 people), has been through the mediation process, producing a settlement. The mediation facility has been under a one year trial period and the FSA has decided to extend the period for 6 months. It is considered appropriate for there to be an informal process under which a resolution might be achieved, avoiding the need for a hearing before the Financial
