UK’s HM Treasury And Financial Services Authority: Consultation On Implementing The EU Market Abuse Directive

HM Treasury and Financial Services Authority (FSA) today published a joint consultation document on proposals for UK implementation of the EU Market Abuse Directive.

The Directive sets out a common framework for tackling insider dealing and market manipulation in the EU.

Financial Secretary, Ruth Kelly said: "The Treasury welcomes the Directive's aim of protecting investors and promoting confidence in financial markets by establishing a framework for the prevention of market abuse. However, the proposals are complex and it is therefore important that all parties engage in the consultation process."

This joint consultation document seeks comments on the proposed legislative and FSA Handbook changes to achieve implementation. Comments on the proposals generally or any particular aspect of them would be welcomed.

The closing date for responses to the consultation is 10 September 2004.

Background

1. On 28 January 2003 the European Parliament and the Council of the European Union adopted Directive 2003/6/EC on Insider Dealing and Market Manipulation (Market Abuse). It came into force on 12 April 2003 and Member States are required to implement the Directive into national law by 12 October 2004. The Treasury and FSA are aiming to finalise the legislative and rule changes required by the end of November 2004.
2. The Commission proposed a Market Abuse Directive as part of the Financial Services Action Plan (FSAP). The FSAP is the legislative framework for developing the Single Market in financial services. Between its endorsement by the European Council in March 2000 and the end of April 2004, 38 out of 42 measures in the FSAP have been adopted in the EU. The FSAP may be found on the Treasury website.
3. The Treasury invites comments on Part 2 of the consultation document. Responses to the consultation should be sent to:

   Jacqueline Latter
   Capital Markets and Governance Team
   HM Treasury
   4/22
   1 Horse Guards Road
   London SW1A 2HQ
   Email: jacqueline.latter@hm-treasury.x.gsi.gov.uk

4. The FSA invites comments on Part 3 of the consultation document. Responses to the consultation should be sent to:

   Fionnuala O'Brien
   FSA
   25 The North Colonnade
   Canary Wharf
   London E14 5HS
   Email: marketabusedirectivecp@fsa.gov.uk