Market abuse safe harbours - further consultation

In the last issue of Fraud Intelligence Michael Grant of London Guildhall University examined the Financial Services Authority’s (FSA) proposals for a civil offence of market abuse. They were greeted with concern by City practitioners who feared that long-established behaviour would fall foul of the new regime. In this article he considers the regulator’s response in Consultation Paper 16 “Supplement to the Draft Code of Market Conduct”.

At the beginning of December the Financial Services Authority (FSA) published further proposals on the future of the market abuse regime. Its aim was to provide greater clarity about what will and will not constitute market abuse. Consultation Paper 76 sets out the FSA’s proposed approach to the interaction between the market abuse regime and the requirements of the City Code on Takeovers and Mergers and the FSA’s Listing Rules.