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The Market Abuse Directive (MARKET ABUSE DIRECTIVE, MAD) 2003/6/EC was adopted in early 2003 and proposed a comprehensive framework to insider dealing and market manipulation, grouped under the common heading of 'market abuse', to tackle. The directive is aimed at increasing the confidence of investors and market integrity to increase by persons who possess inside information to prohibit trading in financial instruments to which that information relates and market manipulation through practices such as spreading rumors and false or misleading messages and the close of trading, the price at an abnormal level, we prohibit.
To ensure compliance with Directive 2003/6/EC i guarantee, Member States should ensure that their national legislation in accordance with appropriate administrative measures can be taken or administrative sanctions be imposed against the persons responsible where the implementing provisions adopted pursuant not observed. This requirement is without prejudice to the right of Member States to criminal sanctions.
In the report of the High Level Expert Group on Financial Supervision in the EU i was recommended that a "strict policy and operational framework for the financial sector must be based on strict supervision and penalties. The group therefore considers that the supervisory authorities should have sufficient powers to act and a professional should be open to "fair, rigorous and deterrent penalties for all financial misconduct trials which should be effectively implemented."
Effective enforcement requires that the competent authorities to sanctions at their disposal in accordance with Article 14 of Directive 2003/6/EC, "effective, proportionate and dissuasive". Effective enforcement is furthermore dependent on the resources available to the competent authorities and their willingness to abuse to detect and investigate. The High Level Group is of the opinion that "such sanctions regimes currently do not exist" and that the penalty provisions of Member States generally are considered weak and wide ranging.
Therefore, the Commission published a communication i with respect to sanctions in the financial sector. The communication has been suggested that criminal sanctions and particularly prison sentences in general are considered a strong disapproval signal that the deterrent effect of sanctions may increase by the criminal justice system if they are appropriately applied. However, it is possible that criminal sanctions for all types of violations and in all cases be appropriate. The Communication concludes that the Commission will assess whether and in what areas the introduction of criminal sanctions and to establish minimum requirements for the definition of criminal offenses and sanctions may be necessary for the effective implementation of EU financial services legislation.
To ensure compliance with Directive 2003/6/EC i guarantee, Member States should ensure that their national legislation in accordance with appropriate administrative measures can be taken or administrative sanctions be imposed against the persons responsible where the implementing provisions adopted pursuant not observed. This requirement is without prejudice to the right of Member States to criminal sanctions.
In the report of the High Level Expert Group on Financial Supervision in the EU i was recommended that a "strict policy and operational framework for the financial sector must be based on strict supervision and penalties. The group therefore considers that the supervisory authorities should have sufficient powers to act and a professional should be open to "fair, rigorous and deterrent penalties for all financial misconduct trials which should be effectively implemented."
Effective enforcement requires that the competent authorities to sanctions at their disposal in accordance with Article 14 of Directive 2003/6/EC, "effective, proportionate and dissuasive". Effective enforcement is furthermore dependent on the resources available to the competent authorities and their willingness to abuse to detect and investigate. The High Level Group is of the opinion that "such sanctions regimes currently do not exist" and that the penalty provisions of Member States generally are considered weak and wide ranging.
Therefore, the Commission published a communication i with respect to sanctions in the financial sector. The communication has been suggested that criminal sanctions and particularly prison sentences in general are considered a strong disapproval signal that the deterrent effect of sanctions may increase by the criminal justice system if they are appropriately applied. However, it is possible that criminal sanctions for all types of violations and in all cases be appropriate. The Communication concludes that the Commission will assess whether and in what areas the introduction of criminal sanctions and to establish minimum requirements for the definition of criminal offenses and sanctions may be necessary for the effective implementation of EU financial services legislation.
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