HISTORIC PRESS RELEASE : Clarifying market abuse in Financial Services Government responds to consultation [November 1999]
The press release issued by HM Treasury on 2 November 1999.
Important amendments to achieve greater clarity and certainty in the definition of market abuse in the Financial Services and Markets Bill currently before Parliament were announced by Economic Secretary Melanie Johnson today.
The government amendments, agreed by the Standing Committee on the Bill, will :
- introduce additional protections for those who:
- take care not to commit market abuse
- reasonably believe that their behaviour is not abusive
- act in conformity with FSA rules, eg on price stabilisation.
- make it clear that behaviour can only be penalised if it is not in accordance with what a regular user of the market would reasonably expect.
Miss Johnson said:
“Market abuse is bad for the markets and bad for the UK economy. We are determined to be tough on abusers. The action we are taking in the Financial Services and Markets Bill is essential to protect the integrity of UK financial markets. This is in all our interests.
“We have listened carefully to concerns about the need for the Bill to be as clear and as fair as possible, including the views of the Joint Committee under Lord Burns. These amendments reflect close consultation with the industry and market experts and also the recommendations of the Joint Committee. The changes make sure that people can only be penalised for market abuse when their behaviour fails to meet what a regular user of the market would consider to be expected market standards.”
