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
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