Media faces market abuse clamp

Date: 12/09/02

By Peter Chapman

EU JOURNALISTS could be forced to disclose the investments they own and told how to write articles about stocks and shares under proposals endorsed this week by a leading MEP.

The move, attacked by publishing groups, is part of the latest draft of a directive designed to clamp down on market abuse and insider trading by rogue company directors and stock market players.

Luxembourg socialist Robert Goebbels, rapporteur for the directive, told the assembly's economic and monetary affairs committee that journalists should be covered. 'As a former journalist I would be the first to fight against any attack of freedom of the press but I don't think we should exempt them by guaranteeing their impunity.'

Angela Mills, director of the European Publishers Council, said the extra rules - tabled by CESR, the newly formed committee of EU securities market regulators - were tantamount to telling journalists how they should write their stories.

She said they were unnecessary because reputable newspapers and other media had their own disciplinary systems to ensure the vast majority of journalists played fair.

'We will always have mavericks but I don't think it is fair to have an overly strict regime for the rest,' she said. If the rules are adopted, journalists would have to say if they or even members of their family held shares in a company covered in one of their articles.

British conservative MEP Theresa Villiers said she shared the industry's concerns and would likely table an amendment to the directive to exempt reporters from the specific disclosure requirements.

The committee is scheduled to votes on the law on 8 October. The full Parliament is scheduled to hold a second reading during the 21-28 October plenary session.

• Meanwhile Competition Commissioner Mario Monti told the committee he is stepping up the fight against price fixing in the Union after 61 companies were fined a record €1.8 billion in 2001. He expects the level of fines and cases to continue at current rates well into 2003.

Monti said his department has set up an extra unit devoted to cartel-busting, operational from last week. The increase in cartel swoops by his officials did not mean EU businesses were more corrupt than in the past, he pointed out. It was down to the Commission being better organised and spending more resources on fighting cartels.

A crucial factor, he added, were rules allowing companies to escape fines by blowing the whistle on illegal price-fixing.

EU journalists could be forced to disclose the investments they own and told how to write articles about stocks and shares under proposals endorsed in September 2002 by a leading MEP. The move, attacked by publishing groups, is part of the latest draft of a Directive designed to clamp down on market abuse and insider trading by rogue company directors and stock market players.