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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
control of information rules, or
c
the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the
market abuse regulation
.
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 Article 5 (exemption for buy-back programmes and stabilisation) of the
market abuse regulation
.
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.
7
See section 137Q(3) of FSMA 2000 regarding the power of the
FCA
to make rules for the purposes of subsection (4)(c).
S. 91 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.
S. 91(7) inserted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 15(4)(c)
S. 91(3)(a) omitted (3.7.2016) by virtue of The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 15(4)(a)(i)
S. 91(3)(c) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 15(4)(a)(ii)
S. 91(4)(c) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 15(4)(b)