Market Abuse
Legislation
The Financial Services and Markets Act 2000 introduces the concept of market abuse. Under s118 (1) market abuse is defined as:
- behaviour in relation to any qualifying investments;
- likely to be regarded by regular users of the market as falling below the standard reasonably expected of a person in that position; and
- that falls within at least one of three categories:
(1)Based on information not generally available to users of the market which, if available to a regular user, would be likely to be regarded by him as relevant in regard to the terms on which to deal in those investments.
(2)Is likely to give a regular user a false or misleading impression as to the market value of such investments.
(3)Is regarded by a regular user as likely to distort the market in such investments.
Qualifying investments are those which are traded on the UK's 'prescribed markets', as well as those traded on other European regulated markets.
The Financial Services Authority have also drawn up a Code of Market Conduct to detail the ways in which market abuse can occur.
Types of market abuse.
Consequences
Market abuse as defined in the Code can result in an unlimited fine and a public reprimand by the Financial Services Authority under civil law.
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Created at 8/21/2012 4:32 PM by System Account
(GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London
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Last modified at 11/2/2016 11:36 AM by System Account
(GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London
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