How can the FCA prosecute illegal insider dealing?

The correct answer relates specifically to the Financial Services and Markets Act 2000 (FSMA). This legislation provides the legal framework for regulating financial services in the UK, including the prosecution of offenses related to insider dealing. Under the FSMA, the Financial Conduct Authority (FCA) is granted authority to take action against individuals and organizations engaged in illegal insider trading. The act defines insider dealing, outlines the legal repercussions for such activities, and empowers the FCA to conduct investigations and bring prosecutions.

This framework facilitates a structured approach to identifying, investigating, and penalizing insider dealing, ensuring market integrity and consumer confidence. The comprehensive provisions of the FSMA regarding insider trading give the FCA the necessary powers to enforce compliance and safeguard the interests of investors.

While other options reference relevant legislation, they are not the primary source for prosecuting illegal insider dealing. The FSA 2012 is more about the overarching regulatory framework and consumer protection, while the Companies Act 2006 addresses corporate governance and accountability. The Criminal Justice Act (CJA) does relate to various financial crimes but does not specifically focus on the regulatory enforcement of insider dealing like the FSMA does.