Immunity prospect to tempt insider traders

Insider traders whose evidence assists the prosecution of other market abuse suspects may escape criminal proceedings under a leniency proposal in CP08/10, the annual review of the Decision Procedure and Penalties manual (DEPP) and the Enforcement Guide (EG). The decision on whether to prefer charges would, in each case, depend on both the quality of the evidence and the public interest in whether the individual should be prosecuted irrespective of the help he had provided. Alternatively, the regulator could issue a public censure or levy a financial penalty, which would normally require repayment of any profits from the misconduct and might include a punitive element. If the FSA opted not to prosecute, there would be no bar on other authorities bringing a criminal case.