Insider Trading - FSA "Tightening Up" Enforcement

18/02/2009

The Financial Services Authority (FSA) is to bring a prosecution against Malcolm Calvert, a former trader and partner at Cazenove, for insider trading. Mr Calvert retired from Cazenove in 2000. The offences he is charged with are alleged to have taken place between 2003 and 2005 and relate to allegations that Mr Calvert acquired shares on 12 different occasions in certain companies which he was aware were variously involved in negotiations relating to management buy outs, takeovers and mergers.

Following legal wrangles which first started in July 2008, Mr Calvert was finally ordered to stand trial by Southwark Crown Court on 29 January this year. The case is set to take place in September 2009 following his "not guilty" plea to 12 counts of insider trading. The trial is set to last 8 days.

This is not the first time the FSA has brought criminal charges against an individual for insider trading. The first was in January 2008 and the increase by the FSA of activity in this area over the last 12 months (there are additional prosecutions in the pipeline) is seen as a statement of intent on the part of the FSA which, since it assumed criminal prosecution powers for insider trading in 2001, has been criticised for its perceived weakness in enforcement in this area.

Contact: simonmunro@city-law.net

Back to news archive