ABSTRACT
This chapter considers background to the policy of criminalizing and regulating insider dealing, plus an evaluation of the financial institutions and regulatory bodies. It argues that the Financial Services Authority (FSA) has begun to use its enforcement and investigative powers with greater frequency. Insider dealing is the illegal trading in shares or securities by someone, or at the instigation of someone, with inside knowledge of unpublished business data or information that would affect the price of shares being bought or sold. The UK's insider dealing policy, like its strategies towards money laundering and counter-terrorist financing, has been influenced by the measures introduced by the European Union (EU). The principal or primary government department that manages the UK's insider dealing policy was the then Department of Trade and Industry (DTI). The criminalization of insider dealing in the UK is largely seen as a failure as a result of the high burden of proof required in such difficult evidentiary cases.
