.jpg)
The Treasury is today launching a consultation on the UK Market Abuse Regime. The consultation is specifically focused on where the UK regime imposes additional requirements to the EU's 2003 Market Abuse Directive.
The UK currently has a wider definition of market abuse than that established in the EU's 2003 Market Abuse Directive. We have committed to reviewing the regime's scope by May 2008 to assess whether this wider definition remains justified.
The EU is reviewing the Directive in 2008. We consider a short extension to the current superequivalences beneficial, until the outcome of the EU review is known. This would enable a wider consideration of the benefits of the superequivalences in the context of the forthcoming EU review and would minimise transition costs for industry. We would welcome views by 7 May 2008.
Background
1. When implementing the Directive on 1 July 2005, the UK opted broadly to retain the domestic market abuse regime introduced in 2001. We introduced sunset clauses on the elements of the UK regime that were superequivalent to the Directive, meaning that the provisions will fall away on 30 June 2008 unless they are extended.
2. Abuse of the financial markets involves either insider dealing (using or seeking to use certain information that is not publicly available for one's own advantage) or market manipulation (distorting the market by giving false signals and misleading others).
3. A link to consultation can be found at: FSMA Market Abuse Regime: a review of the sunset clauses - consultation
