FCA updates penalties manual and enforcement guide for Market Abuse Regulation

The FCA today published PS16/18: Changes to the Decision Procedure and Penalties manual and the Enforcement Guide for the implementation of the Market Abuse Regulation. In this Policy Statement the FCA summarises the feedback it received to Consultation Paper 16/13, Changes to the Decision Procedure and Penalties Manual and the Enforcement Guide for the implementation of the Market Abuse Regulation, which closed on 22 May 2016.

The regulator has incorporated this feedback into the changes to the Decision Procedures and Penalties manual (DEPP) and the Enforcement Guide (EG) implementing the EU Market Abuse Regulation (EU MAR), which will apply from 3 July 2016.

EU MAR updates the civil market abuse framework that was established by the EU Market Abuse Directive. In CP15/35 the FCA consulted on changes to the Handbook (other than DEPP and EG) for the purposes of implementing EU MAR. This CP noted that the Treasury was preparing a Statutory Instrument (SI) to modify domestic law to meet the UK’s obligation to implement EU MAR. The webpage for CP15/35 directed readers to the appropriate contact at the Treasury to request a copy of an early draft of the SI (the preliminary draft).

London City

This Policy Statement will be relevant to (among others) firms or individuals who directly or indirectly deal in, or any firm which issues financial instruments (FIs) that are:

  • admitted to trading on a regulated market or for which a request for admission to trading on such a market has been made
  • traded on a Multilateral Trading Facility (MTF), admitted to trading on a MTF or for which a request for admission to trading on a MTF has been made
  • traded on an Organised Trading Facility
  • not admitted to trading on one of those facilities, but the price or value of which depends on or has an effect on the price or value of an FI

This includes any transaction, order or behaviour concerning these FIs whether or not the transaction, order or behaviour takes place on a trading facility.

This Policy Statement will be of interest to emission allowance market participants, and any person discharging managerial responsibilities (PDMR) within issuers and participants, or any person closely associated with them.

It will also be of interest to consumers who directly or indirectly deal and invest in any of the FIs indicated above.

For the FCA statement and related information, please click here.