Crooked bankers and insider traders would have no safe havens under planned global guidelines for market-abuse penalties, amid concerns some countries don’t have strict enough rules.
Bloomberg reports that Culprits should face prison or tough fines regardless of where they are based, said David Wright, secretary general of the International Organization of Securities Commissions, a group of global regulators working on principles for how different offences should be punished.
'We have simply had far too many examples over the last 10 years of totally unacceptable behaviour in financial markets', Wright said in an interview. 'The potential illicit financial gains for them far outweighed the risks and costs of getting caught. This equation must be reversed'.
Faith in the financial industry has been rocked by probes into suspected rigging of benchmarks including Libor and rates underpinning markets from oil to currencies. Banks in the U.K. are embroiled in scandals over improper sales of insurance products and derivatives. The European Union estimated that manipulation and insider dealing amounted to $17.9bn in the bloc’s equities markets alone in 2010.
'In my personal view', those 'who blatantly break the rules and mis-sell and try to profit unfairly, there’s only one place they should go and that’s the nearest penitentiary', said Wright.
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