The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016

Made: 28th June 2016

Laid before Parliament: 29th June 2016

Coming into force: 3rd July 2016

The Treasury are designated for the purposes of section 2(2) of the European Communities Act 1972 in relation to financial services.

The Treasury make the following Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972.

PART 1 — General

Citation and commencement

1

These Regulations may be cited as the Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 and come into force on 3rd July 2016.

Interpretation

2

In these Regulations—

• “the 2000 Act” means the Financial Services and Markets Act 2000 ;

• “the FCA” means the Financial Conduct Authority;

• “the market abuse regulation” means Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC , as it forms part of assimilated law; and

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “supplementary market abuse enactment” means— any EU regulation made under the market abuse regulation which is assimilated direct legislation;any instrument made under the market abuse regulation on or after IP completion day

Designation of competent authority

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Delayed public disclosure of inside information

4

• (1) Where an issuer or an emission allowance market participant delays the disclosure of inside information under Article 17.4 (public disclosure of inside information) of the market abuse regulation it is required to provide a record of its written explanation of how the conditions set out in Article 17.4 were met to the FCA only upon the FCA's request.

• (2) In this regulation—

• “emission allowance market participant” has the meaning given in Article 3.1 (20) of the market abuse regulation; and

• “issuer” has the meaning given in Article 3.1(21) of the market abuse regulation.

Reporting contraventions of the market abuse regulation

5

The Schedule (reporting of actual or potential contraventions of the market abuse regulation to the FCA) has effect.

Applications under the market abuse regulation

6

• (1) Any application to the FCA under the market abuse regulation or a supplementary market abuse enactment must—

• (a) be made in such manner as the FCA may direct; and

• (b) contain or be accompanied by, such other information as the FCA may reasonably require.

• (2) At any time after receiving an application and before determining it, the FCA may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.

• (3) Different directions may be given, and different requirements imposed, in relation to different applications or categories of application.

• (4) The FCA may require an applicant to provide information under this regulation in such form, or to verify it in such a way, as the FCA may direct.

• (5) Section 398 of the 2000 Act (misleading FCA or PRA: residual cases) applies to a requirement imposed under this regulation as it applies to a requirement imposed by or under the 2000 Act.

Notifications under the market abuse regulation

7

Any notification to the FCA under the market abuse regulation or a supplementary market abuse enactment must be made in such manner as the FCA may direct.

PART 2 — Amendments to the Financial Services and Markets Act 2000

Amendments to Part 6 of the 2000 Act

8

• (1) Part 6 of the 2000 Act is amended as follows.

• (2) In section 73A (Part 6 Rules)—

• (a) omit subsection (3); and

• (b) in subsection (6) omit “, disclosure rules”.

• (3) In section 91 (penalties for breach of Part 6 rules)—

• (a) omit subsection (1ZA); and

• (b) in subsection (2) omit “(1ZA)(a),”.

• (4) Omit sections 96A (disclosure of information requirements) to 96C (suspension of trading) .

• (5) In section 97(1)(b) (appointment by FCA of persons to carry out investigations) omit “(1ZA)(a),”.

• (6) For section 102A(4) (meaning of “securities” etc) substitute—

(4) “Financial instrument” has the meaning given in Article 4.1.17 of the markets in financial instruments directive .

• (7) In section 102B (meaning of “offer of transferable securities to the public” etc.)—

• (a) for subsection (5)(c) substitute—

(c) a prescribed market.

; and

• (b) after subsection (5) insert—

(5A) The Treasury may make regulations to specify (whether by name or description) the markets which are prescribed markets for the purposes of subsection (5)(c).

• (8) In section 102C(a) (meaning of “home State” in relation to transferable securities) omit “and in section 96A”.

• (9) In section 103(1) (definitions) omit the definitions of “disclosure rules” and “inside information”.

• (10) Omit Schedule 11B (connected persons).

Amendments to Part 8 of the 2000 Act

9

• (1) Part 8 of the 2000 Act is amended as follows.

• (2) For the heading of Part 8 substitute “ Provisions relating to market abuse ”.

• (3) Omit sections 118 (market abuse) to 122 (effect of the code) , including the italic headings before section 118 and section 119.

• (4) Before section 123 (power to impose penalties in cases of market abuse) and the italic cross heading preceding that section insert—