The U.K. has recently initiated a series of comprehensive crackdowns on financial fraud, particularly in the financial services sector. A recent enforcement action highlighted the effectiveness of one of the Financial Conduct Authority’s lesser-known weapons in its fight to combat insider trading—the Suspicious Transaction and Order Report (STOR).
Experts also believe that this reporting mechanism encourages firms to take their obligations around reporting suspicious market activity more seriously, not only to improve their own compliance, but also to ensure that they can maintain the current position of being able to police themselves rather than face additional regulatory scrutiny.
