Brussels, 09/01/2014 (Agence Europe) - A provisional agreement on criminal penalties for abuse of the market (see EUROPE 10989) was confirmed by the European Parliament's economic and monetary affairs committee on Thursday 9 January, when it adopted a revised directive responding to the scandals of banks fiddling the Libor and Euribor interest rate benchmarks. The agreement paves the way for a vote in plenary in February.
Internal Market Commissioner Michel Barnier welcomed the committee's move, saying that the integrity of the markets and citizens' money had to be protected. The new EU rules will make it possible to send white collar criminals to prison for insider dealing, manipulation of the markets and the leaking of internal information.
The agreement includes a common definition of the crimes in question and sentences, ranging from fines to prison sentences of up to four years for market manipulation and insider dealing, and up to two years for leaking internal information. Companies can also be held liable. Penalties are also listed for attempted crimes and aiding and abetting criminals.
The EU28 must now introduce legislation into their own legal systems to implement the directive if crimes are committed in their country or by someone holding the passport of their country. Harmonisation is needed because current legislation and penalties differ widely. National governments will have to train the authorities to pursue highly complex market abuse cases. Once the agreement has been endorsed by the European Parliament, the Council of Ministers will formally adopt the directive. (MD/transl.fl)