06 November 2001

FESE: Market Abuse: is legislation necessary? – speech by Paul Arlman

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“Although the current proposal for market abuse including insider trading, argues harmonisation across-borders, a close analysis shows that there is very little going to be harmonised and in many areas choice is being left to national governments. On top of that the sanctions regime is one where the Commission itself hesitates to even propose any harmonisation.”
“I would like to argue that the approach European legislators and regulators should take, should be a comprehensive one instead of the fairly narrowly focused proposals by the Commission. Yes, we would agree that a few types of behaviour may or even should be defined as market abuse and made punishable by criminal law. That is where norms for society are set. We should however never forget that criminal law is and can only be the 'ultimum remedium'. The prosecutors in the Courts are bound by an unchangeable body of processual prescriptions and regulations, they are inflexible by nature and by law.”
see full speech

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