European legislators this week approved mandatory jail sentences of at least four years for individuals convicted of serious market manipulation and insider dealing offenses.
European Parliament overwhelmingly passed the new regulation on Tuesday during its plenary session, which would require judges imposing a country’s maximum penalty for market abuse offenses to include at least four years of jail time, according to European Parliament’s press service. The European Commission, the Council of Ministers and European Parliament had formed a trilogue agreement on the matter in December. Lawmakers said they hope a stringent, EU-wide stance on offenses like the benchmark rate rigging scandal involving the London Interbank Offered Rate (LIBOR) will help restore confidence in financial markets and protect investors.
