UK tells firms to tighten controls to curb leaks

06/06/2008 05:14

LONDON (Reuters) - Firms should tighten up access to sensitive information, improve code names and keep desks clean to stop "insider" deals, Britain’s financial watchdog said on Thursday, in a list of measures to toughen up on leaks.

The Financial Services Authority (FSA) has said levels of market abuse remain a cause for concern, despite new rules, and first told firms to strengthen internal controls last July.

It said on Thursday that it was happy with improved awareness, but said companies were still allowing too many people into deals, with many arguing that the need for support staff, specialists and demands for quick completion from clients made it difficult to limit the number of insiders.

The FSA also said not enough of the firms it reviewed, from banks to printers, carried out detailed internal probes after leaks where they do not believe they were the source.

"I would like to see more efforts to crack down on the length of insider lists and to see firms giving greater focus to the importance of leak (inquiries)," said Alexander Justham, FSA director of Markets.