New laws to stop rogue stockbrokers

NEW laws to prevent insider dealing and protect investors from unscrupulous stockbrokers came into force yesterday.

The EU’s Market Abuse Directive was signed into Irish law yesterday in a bid to ensure that consumers are not taken in by financial advisers attempting to manipulate share prices and are not misled by brokers distributing investment advice.

In Ireland, stockbrokers, execution-only dealers, or anyone trading in listed securities will have to monitor suspect transactions and report any incidents. For the first time, suspicious trading in equities across Europe must also be reported to financial regulators.