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Status: You are viewing the version of the handbook as on 2009-03-31.

REC 2.10 Financial crime and market abuse

REC 2.10.1UKRP

Schedule to the Recognition Requirements Regulations, Paragraph 4(2)(f)

2Without prejudice to the generality of sub-paragraph [4(1)], the [UK RIE] must ensure that-

appropriate measures (including the monitoring of transactions effected on the [UK RIE]) are adopted to reduce the extent to which the [UK RIE's ]facilities can be used for a purpose connected withmarket abuse orfinancial crime, and to facilitate their detection and monitor their incidence;

REC 2.10.2UK

Schedule to the Recognition Requirements Regulations, Paragraph 19(2)(d)

2Without prejudice to the generality of sub-paragraph [19(1)], the [UK RCH] must ensure that-

appropriate measures are adopted to reduce the extent to which the [UK RCH's]facilitiescan be used for a purpose connected withmarket abuseorfinancial crime, and to facilitate their detection and monitor their incidence;

REC 2.10.3GRP

In determining whether a UK recognised body's measures are appropriate to reduce the extent to which its facilities can be used for a purpose connected with market abuse or financial crime, to facilitate their detection and to monitor their incidence, the FSA may have regard to:

  1. (1)

    whether the rules of the UK recognised body enable it to disclose any information to the FSA, or other appropriate bodies involved in the detection, prevention or pursuit of market abuse or financial crime in the United Kingdom or overseas; and

  2. (2)

    whether the arrangements, resources, systems, and procedures of the UK recognised body enable it to:

    1. (a)

      monitor the use made of its facilities so as to obtain information regarding possible patterns of normal, abnormal or improper use of those facilities;

    2. (b)

      detect possible instances of market abuse and financial crime, for example, by detecting suspicious patterns in the use of its facilities;

    3. (c)

      communicate information about market abuse and financial crime promptly and accurately to appropriate organisations; and

    4. (d)

      cooperate with all relevant bodies in the prevention, investigation and pursuit of market abuse and financial crime.

REC 2.10.4GRP

The law on market abuse and financial crime, including Part VI of the Criminal Justice Act 1988 and the Money Laundering Regulations, applies to UK recognised bodies. This recognition requirement (and this guidance) does not restrict, diminish or alter the obligations contained in that legislation.