The COB has lost other cases in the appeals court in the past year, and then in June suffered a further blow when it emerged that the stock market watchdog had opened an enquiry into two of its own employees for alleged insider trading. Finance Minister Laurent Fabius pledged last month to issue a new framework of rules for the COB to enable it to "impose penalties in a manner conforming to the rules of jurisprudence."

The new rules were published on Wednesday in the official government gazette, and include provisions to ensure that anyone who is the subject of an enquiry is fully informed of the accusations against him, and is given ample opportunity to respond to the charges.

Euro shares gain
European shares strengthened on Wednesday, after benign US data diminished expectations of a US rates rise, although overall positive sentiment was undermined by losses in the US high-tech sector.

The FTSE 100 index was showing a gain of 28.5 points to 6,407.8, while the techMARK slipped 18.45 points to 3,556.89. In Frankfurt the DAX stood at 7,165.55, 20.02 points higher, while Paris' CAC-40 gained 22.84 points to 6,555.13.

The "new economy" "old economy" split resurfaced in London, where the technology sector was weaker overall, although the losses were contained. Prominent losers included ARM Holdings, 34 pence lower at 686.5.

Among financials, CGNU was one of the biggest fallers after it posted disappointing interim results as a result of extensive claims following storm damage in France last winter. The share lost 93 pence to 974.