Brussels, le 23/07/2012 (Agence Europe) - On Wednesday 25 July 2012, the European Commission will unveil amendments to the draft insider dealing directive, according to the online version of French newspaper Les Échos on Monday 23 July. EU Internal Market Commissioner Michel Barnier and Justice Commissioner Viviane Reding are due to unveil the amendments together, which will add manipulation of benchmarks as a crime to Articles 2, 5 and 8, a crime for which prison sentences can be imposed.
The draft directive has been under examination at the European Parliament since October 2011 (see EUROPE 10476), but currently only covers insider dealing vis-a-vis transactions or stock market orders for financial products. The Commission suggests that the term benchmark be added to the directive, which is currently very vague and only mentions information that might indirectly lead to manipulation, requiring proof of market manipulation when determining whether fraud has taken place.
Les Échos reports that Commissioner Barnier wants the draft directive to be adopted this year, so that it can come into force in 2014 across the EU27.
His impatience may be thwarted by the European Parliament because the EP rapporteur on this issue, Arlene Mc Carthy (S&D, Ireland), says she is planning to hold hearings about the Libor scandal after the summer holidays. The competition department at the European Commission has yet to publish its investigative findings into the manipulation of Libor and Euribor inter-bank interest rate scandal. (EL/transl.fl)