Claire Cross writes for FT Adviser about the FCA increasing its efforts to deter insider dealing

Partner Claire Cross writes for FT Adviser about the Financial Conduct Authority’s efforts in recent months to deter individuals from insider dealing, following concerns that intentional leaking of material information to the press in live M&A deals is on the rise.

While strategic leaks to the media may be considered by some to be a regular part of dealmaking, Claire cautions that market participants should be alive to the risk of breaching the UK Market Abuse Regulation (UK MAR), which expressly prohibits the unlawful disclosure of insider information.

Collating the evidence to prove a breach “will be anything but straightforward”, according to Claire, as leaks happen through informal, off-the-record conversations and can invoke complicated issues of journalistic privilege. However, it is important to remember that the FCA has been adopting “a more assertive and resolute approach” to enforcement, reflecting its commitment to safeguarding market integrity, Claire says.

Any individual subject to successful FCA action could face a sizeable fine and the possibility of a ban from the industry, which are huge consequences for “loose lips”, Claire concludes.

Read the article here.