http://www.legislation.gov.uk/ukpga/2012/21/section/90/2017-03-01Financial Services Act 2012An Act to amend the Bank of England Act 1998, the Financial Services and Markets Act 2000 and the Banking Act 2009; to make other provision about financial services and markets; to make provision about the exercise of certain statutory functions relating to building societies, friendly societies and other mutual societies; to amend section 785 of the Companies Act 2006; to make provision enabling the Director of Savings to provide services to other public bodies; and for connected purposes.texttext/xmlenStatute Law Database2026-08-12Expert Participation2017-03-01 Financial Services Act 2012ActWater Act 2014s. 79(4)s. 94(3)Financial Services Act 2012ActWater Act 2014s. 81(10)s. 94(3) PART 7 901A person (“P”) who does any act or engages in any course of conduct which creates a false or misleading impression as to the market in or the price or value of any relevant investments commits an offence if—aP intends to create the impression, andbthe case falls within subsection (2) or (3) (or both).2The case falls within this subsection if P intends, by creating the impression, to induce another person to acquire, dispose of, subscribe for or underwrite the investments or to refrain from doing so or to exercise or refrain from exercising any rights conferred by the investments.3The case falls within this subsection if—aP knows that the impression is false or misleading or is reckless as to whether it is, andbP intends by creating the impression to produce any of the results in subsection (4) or is aware that creating the impression is likely to produce any of the results in that subsection.4Those results are—athe making of a gain for P or another, orbthe causing of loss to another person or the exposing of another person to the risk of loss.5References in subsection (4) to gain or loss are to be read in accordance with subsections (6) to (8).6“Gain” and “loss”—aextend only to gain or loss in money or other property of any kind;binclude such gain or loss whether temporary or permanent.7“Gain” includes a gain by keeping what one has, as well as a gain by getting what one does not have.8“Loss” includes a loss by not getting what one might get, as well as a loss by parting with what one has.9In proceedings brought against any person (“D”) for an offence under subsection (1) it is a defence for D to show—ato the extent that the offence results from subsection (2), that D reasonably believed that D's conduct would not create an impression that was false or misleading as to the matters mentioned in subsection (1),bthat D acted or engaged in the conduct—ifor the purpose of stabilising the price of investments, andiiin conformity with price stabilising rules,cthat D acted or engaged in the conduct in conformity with control of information rules, ordthat D acted or engaged in the conduct in conformity with the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.10This section does not apply unless—athe act is done, or the course of conduct is engaged in, in the United Kingdom, orbthe false or misleading impression is created there.11See section 137Q(3) of FSMA 2000 regarding the power of the FCA to make rules for the purposes of subsection (9)(d).S. 90 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.S. 90(9)(d) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 15(3)(a)S. 90(11) inserted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 15(3)(b)