If the FSA is going to set the global standard for curbing rogue trading activities, the insider trading stars of tomorrow little to worry about. Individuals found guilty of illicit trading activities will face financial penalties up to 40% of their total compensation, with a minimum fine of £100,000. Apparently allowing people to keep 60% of their comp after breaking securities laws is the hard line the FSA's director of enforcement is looking to take.
By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others on what they can expect to pay for flouting our rules
So for those earning over £150,000 and facing a 50% income tax next year, if your insider trading scheme yields at least 66% more than you would earn through legitimate means, it could pay to cheat.
FSA to triple fines and dock pay for market abuse [Times Online]