Examining the new market abuse regime

Abstract

The Financial Services and Markets Act will introduce a new framework for dealing with cases of market abuse. In broad terms the framework will cover market manipulation, the misuse of information not generally available to the market and the dissemination of misleading information. The Government made a number of changes to the proposed regime during the Bill's parliamentary stages with the outcome that what is now Part VIII of the act looks quite different from the original Part VII published in the July 1998 Bill. That, however, begs the question of how different the current version of Part VIII is to its predecessor in substance. This paper addresses the following broad areas in order to summarise where we now stand: — the original intentions behind the introduction of a new regime for dealing with cases of market abuse, complementary to the criminal regime — the concerns which the original approach raised in the minds of market practitioners and their advisers — an assessment of the changes that have been made to Part VIII (formerly Part VII) of the Bill as originally published, and — some concluding thoughts.

Citation

Wisbey, G. (2000), "Examining the new market abuse regime", Journal of Financial Regulation and Compliance, Vol. 8 No. 3, pp. 210-214. https://doi.org/10.1108/eb025044