In this Policy Statement we summarise the feedback we 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.
We have incorporated this feedback into our 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. We explain these changes in this Policy Statement.
Why are we publishing this policy statement?
EU MAR updates the civil market abuse framework that was established by the EU Market Abuse Directive. In CP15/35[1] we 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).
In CP16/13 we invited comments on changes to DEPP and EG for the purposes of implementing EU MAR in light of the preliminary draft, and likely changes to this draft, including:
- changes to our decision-making procedure in DEPP 2 to include the new powers that we will have under the Financial Services and Markets Act 2000 (FSMA)
- changes to our statements of policy in DEPP 6 and DEPP 6A to set out how our policy would apply to contraventions of EU MAR and our new sanctioning powers
- other consequential changes necessary to DEPP and EG in light of EU MAR and the preliminary draft
On 29 June 2016 the Treasury laid the SI (The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016). The SI will come into force on 3 July 2016.
This Policy Statement sets out our changes to DEPP and EG, as proposed in CP16/13, in light of the SI and the responses we received to CP16/13.
Who should read this paper?
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.