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ENF 14.1 Application and purpose


ENF 14.1.1G

This chapter applies to any person, whether regulated or not, who may be the subject of a financial penalty or public statement on the basis that the FSA suspects the person:

  1. (1)

    is or has engaged in market abuse; or

  2. (2)

    by taking or refraining from taking any action has required or encouraged another person or persons to engage in behaviour which, had he engaged in it himself, would amount to market abuse.

ENF 14.1.2G

In this chapter, the expression 'market abuse cases' includes cases involving market abuse and cases involving requiring or encouraging.


ENF 14.1.3G

In enforcing the market abuse regime, the FSA's priority will be to protect prescribed markets from any damage to their efficiency caused by manipulation of the market and misuse of information. The FSA's effective and appropriate use of its powers to deal with market abuse cases will help ensure high standards of regulatory conduct and maintain confidence in the UK financial system, by demonstrating that high standards of market conduct are appropriately enforced in the UK financial markets. The public enforcement of these standards also furthers the FSA's public awareness regulatory objective. In addition, the enforcement of the market abuse regime will help the FSA work towards its regulatory objective of protecting consumers, as it will help to deter future market abuse by market participants, and help to reduce financial crime.

ENF 14.1.4G

However, the FSA is also aware that the possible or actual use of its enforcement powers may have an adverse impact on the market, for example, by causing public uncertainty or affecting the timing or outcome of a takeover bid, and will take this into account.