Eight arrested in trading probe

The financial services regular has powers to prosecute insider dealing

The Financial Services Authority (FSA) has arrested eight people in connection with a major investigation into alleged insider dealing.

Searches were carried out at a number of addresses across London and the south-east of England.

The operation involved 40 FSA staff and a number of officers from the City of London police.

The FSA said it was part of its work to combat market abuse. No further details were released.

Insider dealing carries a maximum sentence of seven years in prison.

As the financial services regulator, the FSA has powers to investigate and prosecute insider dealing.