Financial Crime World

Malta Financial Authority Launches Investigation into Insider Trading Cases

The Securities and Markets Supervision Unit (SMSU) at the Malta Financial Services Authority (MFSA) has announced that it is investigating two individuals who may have traded on the basis of potentially price-sensitive information relating to a listed issuer. This move comes as part of the Authority’s efforts to safeguard the integrity and reputation of the financial market from malpractices.

Ongoing Reviews and Investigations

According to the MFSA’s annual report, there are several ongoing reviews under the Prevention of Financial Market Abuse Act, which relate to possible cases of market manipulation and insider dealing. While details on the specific cases have not been disclosed, the Authority has emphasized its commitment to enforcing the Prevention of Financial Markets Abuse regime to prevent such malpractices.

Role of SMSU

The SMSU plays a crucial role in monitoring exchange trading in financial instruments admitted to trading on the Malta Stock Exchange, with the aim of identifying suspicious trading activities. In 2010 alone, the Unit completed three reviews and initiated six more of suspicious market transactions, as well as one investigation and four more into possible market abuse.

Ongoing Cases

At the end of December last year, there were seven reviews and seven investigations still underway. The MFSA’s efforts to combat insider trading and other forms of financial malpractice have earned it recognition as a leading regulator in the region, with its commitment to promoting a fair and transparent financial environment for investors and consumers alike.

Key Points

  • The Malta Financial Services Authority (MFSA) is investigating two individuals suspected of trading on potentially price-sensitive information.
  • The Securities and Markets Supervision Unit (SMSU) plays a crucial role in monitoring exchange trading activities.
  • There are several ongoing reviews under the Prevention of Financial Market Abuse Act, relating to possible cases of market manipulation and insider dealing.
  • The MFSA has emphasized its commitment to enforcing the Prevention of Financial Markets Abuse regime.