C1Part VIII Penalties for Market Abuse

Annotations:
Modifications etc. (not altering text)

Market abuse

118ASupplementary provision about certain behaviour

1

Behaviour is to be taken into account for the purposes of this Part only if it occurs—

a

in the United Kingdom, or

b

in relation to —

i

qualifying investments which are admitted to trading on a prescribed market situated in, or operating in, the United Kingdom,

ii

qualifying investments for which a request for admission to trading on such a prescribed market has been made, or

iii

in the case of section 118(2) and (3), investments which are related investments in relation to such qualifying investments.

2

For the purposes of subsection (1), as it applies in relation to section 118(4) and (8), a prescribed market accessible electronically in the United Kingdom is to be treated as operating in the United Kingdom.

3

For the purposes of section 118(4) and (8), the behaviour that is to be regarded as occurring in relation to qualifying investments includes behaviour which—

a

occurs in relation to anything that is the subject matter, or whose price or value is expressed by reference to the price or value of the qualifying investments, or

b

occurs in relation to investments (whether or not they are qualifying investments) whose subject matter is the qualifying investments.

4

For the purposes of section 118(7), the dissemination of information by a person acting in the capacity of a journalist is to be assessed taking into account the codes governing his profession unless he derives, directly or indirectly, any advantage or profits from the dissemination of the information.

5

Behaviour does not amount to market abuse for the purposes of this Act if—

a

it conforms with a rule which includes a provision to the effect that behaviour conforming with the rule does not amount to market abuse,

b

it conforms with the relevant provisions of Commission Regulation (EC) No 2273/2003 of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards exemptions for buy-back programmes and stabilisation of financial instruments, or

c

it is done by a person acting on behalf of a public authority in pursuit of monetary policies or policies with respect to exchange rates or the management of public debt or foreign exchange reserves.

6

Subsections (2) and (3) cease to have effect on 30 June 2008.