Euro-MPs back tougher fines for insider trading, market abuse
(BRUSSELS) - EU lawmakers on Tuesday backed tougher penalties and fines for insider trading and other financial market abuses, aiming to bring rogue bankers to account and restore public trust.
The European Parliament voted by a large majority to impose fines of up to 15 percent of a financial entity's annual turnover or 15 million euros ($20 million).
Individuals will face fines of up to five million euros and could in the most serious cases be banned for life from working in certain jobs in the financial services industry, Parliament said in a statement.
The new rules cover a wider range of trading venues and investment instruments such as commodity derivatives than before and "should ensure a high level of investor protection in the EU," it said.
Arlene McCarthy, a Labour MEP who guided the proposal through Parliament, said the vote sends "a clear signal that the EU is not a soft option or safe haven for perpetrators of market abuse."
Member states will now take up the package for further negotiations with the parliament and the European Commission on including them in a market abuse directive that will be applicable to all.
A steady stream of revelations about wrongdoing in the financial markets has stoked widespread anger at a time of austerity, with many blaming the banks for crashing the financial system and then seeking taxpayers' help.
"There is still much to do in restoring the trust and confidence in banks and the financial services industry," McCarthy said.
EU Financial Markets Commissioner Michel Barnier welcomed the vote, saying it was a "decisive contribution to the fight against insider trading and market abuse."
Further information, European Parliament
Adopted text will be available here (click on 10.09.2013)
Draft report on insider dealing and market manipulation (market abuse)