FSA flexes its muscles on insider trading


By Neil Wilson

Last October the Securities and Exchange Commission caused a sensation when it unveiled its wide-ranging insider dealing probe into Raj Rajaratnam and the Galleon hedge fund group. Notwithstanding some glaring omissions over the years—such as, most embarrassingly, its failure to lay a glove on Bernie Madoff—the Galleon case, with its Hollywood thriller-style use of wiretap evidence, can only have enhanced the SEC's reputation as a get-tough, no-nonsense regulator.

More recently, in the U.K.—after the United States still the second biggest center for hedge funds—the Financial Services Authority has also