tax & jurisdiction |
Jersey looks set to upgrade its laws against insider trading and market manipulation on stock exchanges in an attempt to simplify the investigative process for two very similar offences, following the publication of a new consultation paper by the Jersey Financial Services Commission.
Under the current law, insider trading is legislated by the Company Securities (Insider Dealing) (Jersey) Law 1988 while suspected market manipulation is governed by the Financial Services (Jersey) Law.
Gary Godel, director of enforcement at the Commission, said addressing this discrepancy was one of the paper"s primary objectives. "Insider dealing and market abuse are similar and there is often an overlap so we wanted to consolidate provisions for market abuse into one legislation."
Another proposal is to increase JSFC"s rights to investigate criminal activity. "It is also right the commission be able to investigate those in Jersey who have aided and abetted an offence, even if it is not committed on the island," Godel added.
In addition to improving the consistency of the investigative process, the proposals will bring legislation in line with those of other major centres. However, Godel stressed, the current legislation was not "inadequate".
"The commission needs to respond to requests for assistance from overseas regulators investigating these offences in order to maintain the island"s international reputation - even though Jersey has no stock exchange itself," he said.
Phil Austin, chief executive at Jersey Finance, said it was too early to assess the potential impact of the proposals. "We need to meet up with the trade associations here in Jersey once we have all had a chance to consider the proposals."
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