UK

Market Abuse Regime takes shape: FSA publishes final version of Code of Market Conduct

Joanna Gray, Solicitor and Senior Lecturer in Law, University of Dundee. Joanna@alwinton.fsnet.co.uk

Legislative and regulatory activity has continued apace throughout April as several important pieces of secondary legislation under the Financial Services and Markets Act 2000 are now embedded on the statute book (such as the FSMA 2000 (Regulated Activities) Order and the FSMA 2000 (Financial Promotion) Order), and more and more of the FSA Handbook become what the FSA has termed ‘final’ form. One of the by now best known, widely debated and most significant innovations of the Financial Services and Markets Act 2000 is the introduction of a power for the FSA to impose penalties on firms or individuals adjudged to have engaged in “market abuse.” Section 118 of Part VIII of the Act sketches out the essentials of what such behaviour is but the important detail of what specific behaviours do and do not amount to market abuse is to be left to a Code to be published by the FSA.