Investors across Europe are set to receive greater protection against insider dealing and other trading scams once the European Parliament approves a new rulebook.

The Market Abuse directive will force directors to divulge share dealings in their own company, disclosures already compulsory in the UK, but not in many other EU member states.

The directive is also aimed at cracking down on people who leak share tips, and at stopping analysts from profiting from their own share recommendations.

It is hoped the initiative will bolster investor confidence in financial markets, in the wake of the corporate scandals in the US.

Transparency

The directive will affect all those disclosing information to the market, including analysts, brokers and financial journalists.

That in itself has caused criticism from media organisations and led to some last minute changes.

Overall it is hoped the new rules will improve transparency in financial markets, although critics charge that the directive could simply create another layer of bureaucracy.

But Robert Goebels, the MEP in charge of the directive told the BBC's World Business Report that this was not the case.

"There will be even less bureaucracy by the end because for the moment we have 15 different market regulations in the 15 different countries of the European Union," he said.