Insider dealers will not be charged for a year, says FSA

Financial watchdog is building case against those arrested in dawn raids

The City's financial watchdog has admitted that those arrested in connection with its largest ever insider dealing crackdown will not be charged for at least a year as officials attempt to build a case against them.

The Financial Services Authority (FSA) has bailed six of the seven people hauled in last week after a series of dawn raids. An insider said the regulator was poised to issue a statement but it was being held up because one of the accused was in hospital.

A spokesman for the FSA said its team will now compile the information to build a case to put before magistrates, but the process would take some time to complete. "We arrested a couple last year and they were only charged last week. That was two people in a simpler case. This investigation is much more complex."

The regulator has not named any of those arrested after a two-year investigation, but they include senior employees from Deutsche Bank, Exane BNP Paribas and Moore Capital Management.

The process has been held up by Iraj Parvizi, who works at the hedge fund Aria Capital. Mr Parvizi was taken to hospital shortly after his arrest on Tuesday, although it was unclear why, and he is yet to be interviewed.

Among the prominent members of those arrested is the Deutsche Bank managing director Martyn Dodgson, who worked on the team advising the UK Treasury on managing its stakes in Royal Bank of Scotland and Lloyds Banking Group. Another senior figure was Clive Roberts, the head of sales trading at Exane BNP Paribas.

Julian Rifat, a trader at the hedge fund Moore Capital, and Novum Securities' trader Graeme Shelley were also arrested.

The FSA used 143 employees to raid 16 homes in London and the Home Counties as part of the investigation with the Serious Organised Crime Authority on Tuesday. The following day, the stockbroker Ben Anderson was arrested at Gatwick Airport after he returned from the Caribbean.

The FSA said the suspects suspected of being involved in a "sophisticated and long-running insider dealing ring". It believes they passed information to traders, who used it to make significant profits.

The regulator is looking into the possibility that those accused engaged in front running of block trades, according to the news agency Bloomberg. This form of front running involves making a profit using the knowledge that a large block of shares was to be traded, possibly by a corporate client. As block trading involves the sale of significant stakes the share price tends to be heavily affected.

The FSA this month outlined plans to target market manipulation in the City more actively. Its outgoing chief executive, Hector Sants, said that insider dealing was at an "unacceptably high" level.

In the past 12 months, there have been three insider dealing prosecutions and a series of charges brought. The watchdog is also believed to be close to filing criminal charges against alleged members an insider dealing ring that used information leaked from a London printers that printed prospectuses for deals for investment banks such as Cazenove and UBS.

The FSA faces the threat of closure under a Conservative government but Mr Sants still pledged to hire 460 employees to boost its more punitive stance on market abuse. It is also increasing its annual funding 10 per cent to £455m.

End of an era: FSA to abolish sales commission

Independent financial advisers will no longer be able to charge commissions when selling savings and investment products, the Financial Services Authority said yesterday, unveiling the biggest shake-up in the financial advice market for a generation.

From 2013, investment managers and insurers will no longer be able to pay advisers a commission to sell their products. Instead, savers will have to be told what their advice costs upfront, though they will still be able to spread the cost of paying it over time.

The reform is intended to counter allegations that some independent advisers recommend the products of providers that pay the best commissions rather than the right deals for savers. "People need to know their adviser is acting in their best interests," said Sheila Nicoll, the FSA's director for conduct policy. "The new rules are designed to boost confidence and trust in the retail investment market by removing commission bias, actual or perceived, and exploding the myth that investment advice is free."

The FSA has faced criticism from some parts of the financial services industry since proposing this reform last year, with many advisers earning 80 per cent of income from commission. But consumer groups welcomed the announcement. "Once the new rules are in place, independent advice will have to be truly independent," said Adam Phillips, chairman of the Financial Services Consumer Panel.

A Brazilian wandering spider

World's most lethal spider found under a bunch of bananas

Arts and Entertainment
Tim Wonnacott dancing the pasadoble
TVStrictly Come Dancing The Result
Mario Balotelli pictured in the win over QPR
footballInternet reacts to miss shocker for Liverpool striker
Sol Campbell near his home in Chelsea
<p>Jonathan Ross</p>
<p>Jonathan Ross (or Wossy, as he’s affectionately known) has been on television and radio for an extraordinarily long time, working on a seat in the pantheon of British presenters. Hosting Friday Night with Jonathan Ross for nine years, Ross has been in everything from the video game Fable to Phineas and Ferb. So it’s probably not so surprising that Ross studied at Southampton College of Art (since rebranded Southampton Solent), a university known nowadays for its media production courses.</p>
<p>However, after leaving Solent, Ross studied History at the School of Slavonic and East European Studies, now part of the UCL, a move that was somewhat out of keeping with the rest of his career. Ross was made a fellow of the school in 2006 in recognition of his services to broadcasting.</p>

Rumours that the star wants to move on to pastures new

Kimi the fox cub
newsBurberry under fire from animal rights group - and their star, Kimi
Arts and Entertainment
filmsIt's nearly a wrap on Star Wars: Episode 7, producer reveals
Life and Style
Arts and Entertainment
Russell Brand labelled 'left-wing commie scum' by Fox News
ebooksAn unforgettable anthology of contemporary reportage
Paul Nuttall, left, is seen as one of Ukip's key weapons in selling the party to the North of England
Arts and Entertainment
BBC's Antiques Roadshow uncovers a TIE fighter pilot helmet from the 1977 Star Wars film, valuing it at £50,000

TV presenter Fiona Bruce seemed a bit startled by the find during the filming of Antiques Roadshow


Comedian says he 'never laughed as hard as I have writing with Rik'

Life and Style
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Operational Risk Manager - Asset Management

£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...

Project Coordinator - 12 month contract

£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...

IT Operations Manager - London - £55,000

£50000 - £55000 per annum + bonus + benefits: Ashdown Group: IT Relationship M...

Banking Solicitor NQ+

Highly Attractive Salary : Austen Lloyd: NOTTINGHAM - BRILLIANT FIRM - You wil...

Day In a Page

Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album
Hugh Bonneville & Peter James: 'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'

How We Met: Hugh Bonneville & Peter James

'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'
Bill Granger recipes: Our chef's heavenly crab dishes don't need hours of preparation

Bill Granger's heavenly crab recipes

Scared off by the strain of shelling a crab? Let a fishmonger do the hard work so you can focus on getting the flavours right
Radamel Falcao: How faith and love drive the Colombian to glory

Radamel Falcao: How faith and love drive the Colombian to glory

After a remarkable conversion from reckless defender to prolific striker, Monaco's ace says he wants to make his loan deal at Old Trafford permanent
Terry Venables: Premier League managers must not be allowed to dictate who plays and who does not play for England

Terry Venables column

Premier League managers must not be allowed to dictate who plays and who does not play for England
The Inside Word: Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past

Michael Calvin's Inside Word

Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past