Press Release: European Commission seeks criminal sanctions for insider dealing and market manipulation to improve deterrence and market integrity

Investors who trade on insider information and manipulate markets by spreading false or misleading information can currently avoid sanctions by taking advantage of differences in law between the 27 EU Member States. Some countries’ authorities lack effective sanctioning powers while in others criminal sanctions are not available for certain insider dealing and market manipulation offences. Effective sanctions can have a strong deterrent effect and reinforce the integrity of the EU’s financial markets.

That is why the European Commisison proposes EU-wide rules to ensure minimum criminal sanctions for insider dealing and market manipulation. For the first time, the Commission is using new powers under the Lisbon Treaty to enforce an EU policy through criminal sanctions. The proposed Directive requires Member States to take the necessary measures to ensure that the criminal offences of insider dealing and market manipulation are subject to criminal sanctions.

Member States will also be required to impose criminal sanctions for inciting, aiding and abetting market abuse, as well as for attempts to commit such offences. The Directive complements the proposal for a Regulation on Market Abuse, which improves the existing EU legislative framework and reinforces administrative sanctions.

European Commission: Press Release: IP/11/1217: Getting tough on insider dealing and market manipulation http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/1217&format=HTML&aged=0&language=EN&guiLanguage=en

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