October 17, 2008: Sanctions For Reckless Traders, Says Napo

Probation union Napo is calling for sanctions against reckless traders and financial speculators.

A new Napo briefing calls for an investigation into financial speculation and irregularity in the City to see if there has been any criminal activity. If proved, then individuals and institutions must be dealt with by the full force of the law and consideration should be given to the possibility of new laws being introduced to cover such reckless behaviour.

The paper points out that the reckless activity of City speculators could be covered by the government’s Sentencing Advisory Panel guidelines which say there are four levels of culpability. The highest level of is where there is intention to cause harm. The lowest level is where the individual is proved to be negligent.

The panel describe two other levels, first where there is recklessness with regard to whether any harm is caused and secondly whether there is knowledge of specific risks entailed in certain actions without intention to cause harm. Napo believes that this advisory framework should be examined by any investigation to determine whether existing sanctions can be applied or new sanctions are required.

The Inquiry could examine whether any recent financial activity was anti-social in that it caused individuals or groups alarm or distress. Any sanctions could be based on existing legislation such as that covering anti-social behaviour orders or curfews.

Activity deemed reckless could also lead to perpetrators being required to sign acceptable behaviour contracts instructing them to act properly and responsibly in financial affairs. They would be similar to those used with young people who have acted irresponsibly.

The Inquiry could consider possible penalties if misdemeanours were proved, which might involve fines or compensation orders, and it could consider imposing prohibition orders in respect of trading if reckless or criminal activity or intent were proved. It could also consider whether powers were needed to seize any profits from proven reckless dealing which had compromised tax payers’ funds.

Harry Fletcher, Assistant General Secretary of Napo, said:

“The reckless behaviour may fulfil the Sentencing Advisory Panel's criteria on three grounds: that of negligence; of not caring if your reckless behaviour causes harm; and of being reckless but not intending to cause harm. The behaviour of many speculators has indeed caused fear and alarm and is therefore anti-social behaviour at the very least. Those behaving recklessly should be asked to sign acceptable behaviour contracts to ensure they do not behave against the public interest in the future