Insider trading has been illegal in the European Union for many years now, but variations in national law have allowed some of them to escape prosecution. The European Commission wants to change that. "Some countries' authorities lack effective sanctioning powers while in others criminal sanctions are not available for certain insider dealing and market manipulation offences," it said. "Effective sanctions can have a strong deterrent effect and reinforce the integrity of the EU’s financial markets." So it has proposed new rules that would ensure minimum criminal sanctions for insider dealing and market manipulation.
Separately, the commission said it would review the Market Abuse Directive to examine how to bolster it to take account of new technologies that expand the scope and power for market manipulation. Regulators would get stronger investigative and sanctioning powers. Small and medium-sized issuers would see their administrative burden fall, however, or so it believes.
Source documents: The news release explains a bit more of the proposal. The market abuse review has links to the existing legislation.
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