Reuters – The Financial Services Authority (FSA) said it was within its rights when it fined high-profile hedge fund manager Philippe Jabre for market abuse in Japan because the effects of globalfinancial trades are felt worldwide.
Jabre, a former top manager at GLG Partners, was earlier this year found guilty of insider trading on a convertible bond sale for Japan’s Sumitomo Mitsui Financial Group and fined 750,000 pounds.
At a preliminary hearing on his appeal on Monday a lawyer acting for Jabre said the UK’s financial watchdog had no jurisdiction in Japan.
However, the FSA said the instruments were also traded in London, and insider dealing anywhere in the world in Sumitomo securities would destroy confidence in the global market in those securities.
“We do live in a global environment, although we don’t have a global mandate … The effect (of such activities) is likely to be across the board,” the FSA’s lawyers told the preliminary hearing.
