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Status: You are viewing the version of the handbook as on 2005-06-30.

MAR 1.9 Relationship with criminal law and other regulatory requirements

MAR 1.9.1E

Nothing in the Code makes lawful or permits any activity that contravenes the criminal law or applicable legal or regulatory requirements. In particular, nothing in this Code modifies or affects any other obligations of persons who are bound by the rules, the rules of a prescribed market or other relevant rules, regulations or codes of conduct or good practice. The FSA's policy on individual guidance in Chapter 9 of the Supervision manual (SUP 9) is relevant to a person seeking guidance on the Code.

MAR 1.9.2G

Persons will, therefore, need to ensure that, even if their behaviour does not amount to market abuse, it does not breach:

  1. (1)

    any applicable criminal law, for example the insider dealing provisions of the Criminal Justice Act 1993 or the provisions relating to misleading statements and practices in section 397 of the Act; or

  2. (2)

    any applicable rules, for example Principle 5 of the Principles for Businesses (PRIN), the Conduct of Business sourcebook (COB), and the Statements of Principle and Code of Practice for Approved Persons (APER); or

  3. (3)

    any other legal or regulatory requirements to which they are subject, including the rules and regulations of RIEs, the provisions of the Takeover Code and the SARs, the Companies Acts, overseas rules and regulatory requirements.

MAR 1.9.3C

Principle 5 requires a firm to observe proper standards of market conduct. APER 4.3.1 G requires approved persons to observe proper standards of market conduct in carrying out their controlled function. There is, therefore, some degree of overlap between Principle 5 and the market abuse regime,and between APER 4.3.1 G and the market abuse regime. However, there are some important differences:

  1. (1)

    Principle 5 and APER 4.3.1 G apply only to authorised persons and to approved persons, respectively, whereas the market abuse regime applies to all persons.

  2. (2)

    the market abuse regime applies only to behaviour which occurs in relation to qualifying investments traded on a prescribed market. Principle 5 applies, in respect of authorised persons, in relation to activities wherever conducted, if the activities have or might have a negative effect on confidence in the financial system, and otherwise broadly in relation to activities carried on in the United Kingdom.APER 4.3.1 G applies to the activities of approved persons in carrying out their controlled function wherever they occur.

  3. (3)

    Principle 5 and APER 4.3.1 G are broader in scope than the market abuse regime. Principle 5 and APER 4.3.1 G are directed generally at all behaviour which may fall short of proper standards of market conduct. Accordingly, behaviour may fall short of proper standards of market conduct, and therefore breach Principle 5 and APER 4.3.1 G, even though such behaviour does not constitute market abuse.