UK urged to extend max jail term for market abuse to 10 years

Admin

SHARE THIS STORY

The Bank of England has suggested that the max jail term for anyone guilty of market abuse be extended to 10 years from the current 7, in its Fair and Effective Markets Review out on Tuesday evening.

If the UK government follows through with the suggestion, this means anyone guilty of insider trading or market manipulation of energy products covered by the market abuse regulation could get up to 10 years in jail – this includes emissions allowances and exchange-traded energy derivatives.

The bank also suggested that the government keep under consideration extending the scope of the UK’s criminal liability regime to markets and instruments not covered by the market abuse regulation.

It is clear the general public weariness with trading scandals has prompted the bank to suggest extending possible jail time for market abuse to show it and the government are willing to crack down on such behaviour. But as the report points out, nobody has served a full term for market abuse under the current regime in the UK.

What is interesting for energy traders will be how this might affect the application of REMIT in the UK. London introduced criminal sanctions for insider trading and market manipulation under REMIT in April. The max sentence is for 2 years, but the government has made it known it will keep the idea of extending it to match penalties in the financial world under consideration. It is unlikely to change in the short term, but if a scandal or two emerges from energy that could change quite quickly.

 

PREVIOUS POST

Negotiation set to shape key energy regulation

05/06/2015

The next few weeks and carrying through July are likely to result in some import...

Learn more
NEXT POST

ACER looks to form group on energy derivatives

21/07/2015

EU regulators agency ACER is looking for people to form an ad-hoc expert group o...

Learn more
More posts
Clock is ticking on MiFID II
02/02/2017

Time is running out for energy companies that have to work out if they will be included or exempted ...

Read
No alternative: Europe’s low-carbon energy transition will come of age in 2017
25/01/2017

“Alternative energy”. Is that still a common phrase? In some quarters, it is. In a recent New Yo...

Read
Should the EU get tough on the gas network codes?
10/11/2016

Following the recent publication of the EU Agency for the Cooperation of Energy Regulators’ (ACER)...

Read
2016 – for LNG it was the year that wasn’t
24/10/2016

The long-awaited surge of new global LNG production has not led to the widely-expected and sustained...

Read
Ballast bonuses sink shipping activity
26/09/2016

The cancellation of two planned LNG vessel charters in Europe this week shows that it’s becoming h...

Read
A crazy week in UK power. But will the madness return this winter?
22/09/2016

In recent days, UK power has been a crazy energy market to trade in. Late in the day on 14 September...

Read
What’s in a name? That which we call a Bulgarian hub
13/09/2016

Bulgaria and the European Commission have recently been announcing, with much fanfare, the country i...

Read
This winter it really is about the weather
02/09/2016

The cliche about weather driving energy prices, in particular on European gas and Asian LNG, is just...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more