FSA cracks down on insider trading

The Financial Services Authority (FSA) is to hire top London lawyers in its bid to crack down on insider trading in the banking sector.

The identity of the lawyers is not yet known, but Margaret Cole, head of enforcement at the FSA, said she had been allocated money to increase manpower this year and had recently made a number of specialist hires.

“We’re about to announce some people from really good places,” she said.

The lawyers will join an 80-strong team dedicated to investigating the activities of financial institutions and their employees.

Earlier in the year Cole hired David Kirk, a senior prosecutor from the Crown Prosecution Service (CPS), who had experience of dealing with complex criminal cases.

The FSA’s enforcement department has stepped up its activity dramatically since last year. It now expects to bring five new insider dealing prosecutions before the end of 2009.

Yesterday it was revealed that staff at the FSA received a 40% increase in their bonuses.

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