PART 7

Offences relating to financial services

Misleading statements etc in relation to benchmarks
91
1
A person (“A”) who makes to another person (“B”) a false or misleading statement commits an offence if—
a
A makes the statement in the course of arrangements for the setting of a relevant benchmark,
b
A intends that the statement should be used by B for the purpose of the setting of a relevant benchmark, and
c
A knows that the statement is false or misleading or is reckless as to whether it is.
2
A person (“C”) who does any act or engages in any course of conduct which creates a false or misleading impression as to the price or value of any investment or as to the interest rate appropriate to any transaction commits an offence if—
a
C intends to create the impression,
b
the impression may affect the setting of a relevant benchmark,
c
C knows that the impression is false or misleading or is reckless as to whether it is, and
d
C knows that the impression may affect the setting of a relevant benchmark.
3
In proceedings for an offence under subsection (1), it is a defence for the person charged (“D”) to show that the statement was made in conformity with—
a
price stabilising rules,
b
control of information rules, or
c
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.
4
In proceedings brought against any person (“D”) for an offence under subsection (2) it is a defence for D to show—
a
that D acted or engaged in the conduct—
i
for the purpose of stabilising the price of investments, and
ii
in conformity with price stabilising rules,
b
that D acted or engaged in the conduct in conformity with control of information rules, or
c
that D acted or engaged in the conduct in conformity 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.
5
Subsection (1) does not apply unless the statement is made in or from the United Kingdom or to a person in the United Kingdom.
6
Subsection (2) does not apply unless—
a
the act is done, or the course of conduct is engaged in, in the United Kingdom, or
b
the false or misleading impression is created there.
S. 91 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.