• About the FSA
  • What we do
    • Fighting financial crime
      • Market abuse
        • Market conduct

The FSA Handbook includes several requirements about standards of market conduct, which users of the UK markets must follow.

These include the 'Code of Market Conduct' and the 'price Stabilising Rules'. The Handbook also refers to the responsibilities users may have in relation to the City Code on Takeovers and Mergers. While responsibility for takeovers and mergers now rests with the Takeover Panel the FSA continues to work closely with the Panel in order to maintain those standards expected of users within the UK markets.

These standards are central to our work: they support our statutory objectives to maintain market confidence, reduce financial crime and protect consumers. They form the bulk of the Market Conduct Sourcebook (MAR).

The Markets Division is responsible for this section of the Handbook and it has produced several publications about market conduct which are available in the market abuse library.

Market Abuse

The Financial Services and Markets Act 2000 gives us new powers and responsibilities to protect the integrity of the UK's financial markets by creating a new regime to tackle market abuse. This regime will complement existing laws dealing with misconduct in financial markets.

The central part of the new regime is the Code of Market Conduct, which we produced after extensive consultation. We have also produced a factsheet explaining the importance of the regime for all users of the UK's markets. These documents are available in the Market abuse library.

Price Stabilising Rules

These rules allow stabilising managers and their agents to support the price of new issues of securities, for a limited time after the issue, by buying the relevant securities in the secondary market. The rules provide a defence or 'safe harbour' against the crimes of insider dealing and price manipulation.

They also provide a defence to the new market abuse regime. The rules themselves form chapter 2 of the Market Conduct Sourcebook and we have produced a factsheet on them. See the Market abuse library.

The Takeover Code

The Takeover Panel is the independent body who since 1968 has been responsible for administering the City Code on Takeovers and Mergers ("the Code") and for the supervision and regulation of takeovers and other matters to which the Code applies. The Panel is the designated supervisory authority authorised to carry out certain regulatory functions in relation to takeovers pursuant to the Directive on Takeover Bids (2004/25/EC) ("the Directive").

The FSA works closely with the Panel to ensure both the FSA and the Panel continue their respective responsibilities to protect the integrity of the UK financial markets as a whole.

For more information on the City Code and the role of the Takeover Panel see the Takeover Panel website.

 

Back to top