UK

Implementing the Market Abuse Directive

Andrew Clark (020 7804 5761) and Jason Dalrymple (020 7804 7228), PricewaterhouseCoopers

In order to implement the Market Abuse Directive (MAD) the FSA has drawn on its experiences in prosecuting both firms and individuals. The result is a substantial change to the Code of Market Conduct (MAR). Once the proposed rule changes are finalised in November 2004, the market abuse regime will have a much broader scope than it has at present and will significantly extend the requirements on regulated firms to demonstrate that controls exist within their businesses to prevent market abuse. This includes the requirement to report suspicious transactions to the FSA.