A Wake-Up Call From The FCA
Is Your Insider-Trading Program Ready?
The UK’s Financial Conduct Authority (FCA) has recently charged two individuals with insider dealing after identifying suspicious trading linked to confidential takeover information. According to the regulator, an employee at Jefferies International allegedly shared inside information about a client transaction with a close associate, who then traded on that information and made nearly £70,000 in profit. The FCA’s market-monitoring systems flagged the activity based on timing and profit patterns, and further analysis connected the individuals through past employment and personal ties.
This case should serve as a clear reminder to firms in the UK and worldwide: insider trading remains a serious compliance risk, and regulators are increasingly equipped to detect misconduct quickly and accurately.
Key Steps Firms Should Take
To reduce exposure and meet regulatory expectations, companies should ensure they have:
- Maintain accurate, real-time insider lists reflecting who has access to sensitive information.
- Create strong information barriers to prevent material, nonpublic information (MNPI) from moving across teams or business units.
- Monitor employee trading activity across all asset classes, including digital assets.
- Institute regular employee training to reinforce responsibilities and potential consequences.
- Develop clear escalation procedures to allow compliance teams to investigate concerns promptly.
Why Automation Is Essential
With regulators using advanced surveillance tools, firms must adopt compliance technology that can:
- Detect unusual trading patterns earlier
- Link trading behavior to MNPI access
- Reduce errors in insider-list management
- Streamline investigations and recordkeeping
How StarCompliance Helps
StarCompliance (Star) supports firms in managing insider-trading risk with automated solutions that provide:
- Real-time employee trading surveillance
- MNPI and insider-list management
- Conflict identification and escalation workflows
- Centralized, audit-ready reporting
The FCA’s latest case reinforces a broader trend: market-abuse expectations are rising. Firms that modernize their insider-trading controls now will be better positioned to protect themselves and maintain trust in increasingly scrutinized markets.
To see how Star’s MNPI Management Software can help your firm improve insider-trading oversight and manage MNPI more effectively, schedule a personalized demo here.
The Compliance Officer’s Guide To Employee Compliance
