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| "While our investigation found considerable evidence of unacceptable market conduct, the evidence was insufficient to meet the requirement of the law to prove intent, or to overcome defences provided in the law," the Commission's Chairman and Chief Executive Officer Osborne Nurse said in a statement released yesterday. (File photo) | |
PORT OF SPAIN, Trinidad, November 21, 2008 - The Trinidad and Tobago Securities and Exchange Commission has uncovered evidence of insider trading. And it says while it's not enough to take the matter to court, it's making moves to ensure that those who engage in the illegal practice in the future won't escape the long arm of the law.
The discovery was made after the Commission launched a formal investigation - the first of its kind under the Securities Industry Act - into the proposed sale of shares in local company, Trinidad Cement Limited (TCL). TCL had alleged that Mexican company CEMEX has used unpublished price sensitive information in two attempts to gain controlling interest in the Trinidad business in 2002.
"While our investigation found considerable evidence of unacceptable market conduct, the evidence was insufficient to meet the requirement of the law to prove intent, or to overcome defences provided in the law," the Commission's Chairman and Chief Executive Officer Osborne Nurse said in a statement released yesterday.
"As a result, the Commission has accepted the advice and recommendations of its legal counsel and has decided to close the matter."
But Mr Nurse said that the Commission has embarked on a number of initiatives "to ensure a greater likelihood of success in taking future enforcement action", including a recommendation that the law be revised to ensure that insider trading is not provided with any defences within the securities legislation.
That change has been included in the draft Securities Bill 2007 that the Minister of Finance has announced will shortly be laid in Parliament.
In addition, several other steps are being taken to strengthen the Commission's enforcement capability against insider trading and other forms of market manipulation. These include issuing new guidelines for disclosure of trading activity by insiders and connected persons; implementing significantly improved technologies for monitoring market activity on a daily basis; introducing further provisions within the Securities Bill 2007 for the conduct of on-site examinations of securities firms and; strengthening of the Commission's internal investigative capacity.
"Insider trading undermines investor confidence in the securities market and is strictly prohibited by all jurisdictions. The Commission assures the investing public that it shall continue to treat with insider trading violations as one of its enforcement priorities," the statement ended.
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