View the article online at http://citywire.co.uk/wealth-manager/article/a654186
FSA fines stockbroker £8m for the 'most serious’ market abuse
by Emma Dunkley on Jan 28, 2013 at 11:25
The Tribunal concluded the evidence pointed ‘very much’ to the conclusion that Swift Trade’s officers and managers knew that its conduct was not legitimate and that they actively encouraged it.
Tracey McDermott, FSA director of enforcement and financial crime said: ‘This was a particularly cynical case where a business model was based on market abuse.
'The approach taken by Swift Trade was novel and complex, designed to allow them to benefit at the expense of other market users, and to make detection more difficult.’
She added: ‘We urge other market participants to take note of this judgment which makes it clear that layering is abusive. We expect brokers and DMA providers to ensure that their clients implement appropriate controls to monitor their clients’ trading activity closely to ensure that it is not abusive, and to report suspicious transactions.’
News sponsored by:
Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.