Market abuse

Market abuse

This overview is a guide to the Financial Services—Financial crime and sanctions—Market abuse sub-topic, and includes links to appropriate materials.

Overview

In the UK, there are two distinct regimes running alongside each other which regulate and enforce market abuse and market manipulation:

•
the civil/regulatory regime, governed by the Financial Services and Markets Act 2000 (FSMA 2000) and Assimilated Regulation (EU) 596/2014 (UK Market Abuse Regulation) (UK MAR) under which the Financial Conduct Authority (FCA) can issue civil fines and penalties for non-compliance with safeguards to prevent such behaviour, and
•
the criminal regime under which offences can be prosecuted by the FCA among others, including offences under the Criminal Justice Act 1993 (CJA 1993), the Financial Services Act 2012 (FSA 2012), and FSMA 2000

Market abuse is defined in FSMA 2000, s 118 and UK MAR.

Market Abuse Regulation

The Market Abuse Regulation (EU) 596/2014 (EU MAR) strengthened the common European regulatory framework on market abuse originally established by the Market Abuse Directive 2003/6/EC. It extended the scope of the regime to additional markets and platforms, instruments and behaviours. It contains provisions for

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