Why does the UK financial services regulator take such a dim view of Essay

Why does the UK financial services regulator take such a dim view of both market abuse and insider dealing - Essay Example 179). Since the past decade, financial markets have experienced essential reforms. This is because globalization has had dramatic and far-reaching effects on United Kingdom. Market abuse and insider dealings are criminal cases for which one is to be fined or publicly censured (Avgouleas, 2005, p. 179). Market abuse is more loosely delineated than insider dealings. Most of the offenses in the financial markets are dealt with under the market abuse regime. The financial service regulator can enforce a criminal prosecution on a market abuse case if it deems fit and if there is sufficient evidence. Market abuse, according to Alexander (2001, p. 12), refers to improper behavior that destabilizes the United Kingdom markets and harms the interests of the ordinary market users and participants. For this reason, the financial services regulation Act has created sanctions and penalties which are adjacent to the criminals’ offenses Act (Compliance Reporter, 2011, p. 2-3). The primary asp ect of market abuse is behavior in relation to shares and other financial instruments transacted publicly in United Kingdom. For behavior to be termed as an insider dealing, it should typify one of the seven types of insider dealings and market abuses as described by the financial service regulator. However, it should be noted that insider dealing and market abuse acts amount to criminal offenses subject to penal sanctions. The misleading statements and courses of conduct with the aim of inducing another person to implement or desist from carrying out rights in relation to investments amount to criminal offenses (The Compliance Reporter, 2011, p. 4). The market abuse regime will nab anyone: not only the individuals working in the financial markets or who manage the quoted companies on the board but also anyone who will attempt to abuse the securities markets in delineated ways. An individual is liable even when the actions were unintentional and or indirect (encouraging such behavio rs). According to Alexander (2001, p. 4), market abuse and insider information regime covers financial instruments such as the shares, futures, warrants, options and debt insurance, and contracts for differences, transacted on every regulated market in United Kingdom. In addition, the regime covers all the operations associated with the financial instruments even when carried out off-market. In other instances, conduct according to other related financial instruments or essential goods may be nabbed, even when the instruments are not transacted on a normal regulated market. In addition, an individual’s conduct involving securities transacted on an overseas unfettered market may be nabbed if an option related to them is merchandized in United Kingdom. The market abuse regime purposes to safeguard markets from harm to their efficiency and to guarantee effectiveness, order and fairness. The financial service regulator has the responsibility of issuing codes of conduct in the mar ket, which give appropriate direction to individuals determining whether behavior constitutes abuse or not. An insider, in reference to Alexander (2001, p. 10), refers to an individual who has inside information about an investment as a result of his or her membership in the administrative or supervisory body of an issuer of qualifying venture or management. An individual may also be an insider due to holding capital of an issuer of a stipulated venture or due to having right to use the data by the fact of employment, professionalism, or responsibilities. In addition, an

Cabinet Belayachi Company Essay Example | Topics and Well Written Essays - 4250 words

Cabinet Belayachi Company - Essay Example It is evident from the study that sometimes organizations engage in fraudulent activities like tax evasion and account fudging. Most of the fudging is done in minute level and thus it becomes hard to be detected by someone who does not have knowledge and as well as experience to perform auditing and verification of the accounts. In order to perform account verification a small, family-owned organization is hired in order to verify the clients’ accounts’ reliability and transparency. The firm also it also tries to establish taxation strategies for its clients in order to reduce the taxes’ amount to be paid. The financial statements contain vital information pertaining to aspects like financial soundness and stability. Sometimes the companies and organizations are not aware of the unnecessary costs that bear down heavily on the revenue. Application of specific techniques like ratio analysis and balance sheet analysis help the companies in developing specific strate gies to increase the revenue and at same time decrease the costs. Financial diagnoses are performed by the firm by identifying the less productive functions of a given company. Based on the specific findings obtained from the analysis of the financial diagnosis specific strategies are formulated and integrated to optimize the company’s resources. It is active since 1997and has a client base of more than 250, from various economic sectors. Its capital stock is of 100 000 Euros. Years of high quality service and hard work has helped the firm develop long standing relationships with various firms. This long standing relationship in turn has helped the firm to ease the process of account verification and auditing. The firm does not have a huge workforce. Its workforce comprises of 15 employees only. Although the total client base is more than 250, so for this reason sometimes it becomes necessary to work at the client’s premises. Another reason for which the employees had to work at the clients office premises is to keep the confidentiality of the sensitive information. The direct access to the sensitive information can be misused by perpetrators and this will give rise to cases of non compliance and subsequent legal proceedings in the court of law. So for this reason it becomes necessary to allow the employees, have a full and transparent access to all the documents needed to achieve the assigned mission. Cabinet Belayachi also looks at the tax problems of the companies. Taxation is a vast domain, with innumerable clauses and rules. Thus it becomes impossible for small and medium companies to keep dedicated in house tax consultants who will guide the companies to file for the taxes and returns. These companies most of the time approach 3rd party companies on an one-off basis or on demand basis particularly on those times of the year when the tax filing and return deadline approaches (Betty 604). Cabinet Belayachi, acts as a tax consultant offering e xpert advices on taxation. Sometimes Cabinet Belayachi is frequently asked to work closely with taxes inspector in case of clients’ tax adjustments. For that matter, the practice has built a long-term relationship with tax officials in order to ease the process during the mentioned situation. 2. Presentation of department