Simon Hart, Partner in the Global Regulatory Enforcement Team at Reed Smith LLP, comments on the sentence handed down to Raj Rajaratnam for insider trading:
"The sentence is, as expected, heavy and reflects a very successful yet highly challenging prosecution by the US authorities. It is unlikely this could be repeated in the UK. Rajaratnam's conviction was in large part secured through the use of phone-tap evidence. That is simply not an avenue available to the FSA when investigating and prosecuting insider dealing.
"Further, even if there was a successful prosecution of this nature, the sentencing precedents in the UK don't come anywhere near the magnitude of those we have seen in the US."
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Notes to editors
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