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An adequate plug?

17 July 2008 / Richard Burger
Issue: 7330 / Categories: Features
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Richard Burger reports on the FSA's efforts to stop the leak of inside information from the unregulated sector

Last summer the Financial Services Athority (FSA) reviewed the controls over inside information during public takeover and merger transactions (see “Plugging the leaks” 157 NLJ 7287, p 1,222). The review considered how inside information leaks from such transactions, identified good practices to combat these leaks and suggested the introduction of a voluntary code for non-FSA regulated firms who participate in mergers and acquisitions (M&A) work. A year later, the FSA has published a set of Principles of Good Practice (the principles) for the handling of inside information, aimed at the unregulated sector.

The Market Misconduct Problem

The FSA aims to reduce the number of abnormal or informed price movements (IPMs) in advance of significant regulatory and/or takeover announcements to the market by listed companies. According to ongoing FSA research, in 2007 some 28.7% of M&A announcements were preceded by IPMs. It is entirely possible to attribute such movements to accurate financial analysis or deliberate strategic leakage of

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MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

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