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Treasury launches consultation on the UK Market Abuse Regime

HM TREASURY News Release (14/08) issued by The Government News Network on 7 February 2008

The Treasury is today launching a consultation on the UK Market Abuse Regime. The consultation is specifically focused on where the UK regime imposes additional requirements to the EU's 2003 Market Abuse Directive.

The UK currently has a wider definition of market abuse than that established in the EU's 2003 Market Abuse Directive. We have committed to reviewing the regime's scope by May 2008 to assess whether this wider definition remains justified.

The EU is reviewing the Directive in 2008. We consider a short extension to the current superequivalences beneficial, until the outcome of the EU review is known. This would enable a wider consideration of the benefits of the superequivalences in the context of the forthcoming EU review and would minimise transition costs for industry. We would welcome views by 7 May 2008.

NOTES FOR EDITORS

1. When implementing the Directive on 1 July 2005, the UK opted broadly to retain the domestic market abuse regime introduced in 2001. We introduced sunset clauses on the elements of the UK regime that were superequivalent to the Directive, meaning that the provisions will fall away on 30 June 2008 unless they are extended.

2. Abuse of the financial markets involves either insider dealing (using or seeking to use certain information that is not publicly available for one's own advantage) or market manipulation (distorting the market by giving false signals and misleading others).

3. A link to consultation can be found at: http://www.hm-treasury.gov.uk/consultations_and_legislation/fsma/market_abuse/consult_fsma_marketabuse.cfm

4. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558, or by email to public.enquiries@hm-treasury.gov.uk

5. This press release and other Treasury publication and information are available on the Treasury website. If you would like Treasury press releases to be sent to you automatically by email you can subscribe to this service from the press release site on the website.