FSA/PN/157/2001
29/11/2001

The FSA and the Panel on Takeovers and Mergers today published their operating guidelines designed to ensure that market abuse which occurs in the course of a takeover or merger will be tackled effectively. The guidelines set out the respective roles of the FSA and the Panel and how the two bodies will co-operate in dealing with such cases.

Commenting on the guidelines, Gay Huey Evans, the FSAs Director of Markets & Exchanges Division said:

The FSA considers it important that the UKs procedures for protecting shareholders interests during takeovers continue to be speedy, flexible and certain. We have worked closely with the Panel so that the introduction of the market abuse regime does not disrupt the regulation of the takeover bid process and we are confident that the operating guidelines will help achieve this. It is not the FSAs intention to second guess the Panels decisions. The guidelines make clear that the FSA will not exercise its powers during a takeover bid other than in exceptional circumstances.

Philip Remnant, the Director General of the Panel on Takeovers and Mergers, said:

The principal objective of the City Code is to protect shareholders interests during takeovers. The maintenance of fair and orderly markets is important in this. The Panels system of regulation is tried and tested and has served investors and companies very well over more than 30 years. We and the FSA have a shared interest in maintaining its effectiveness. The procedures which we have agreed are designed to ensure that the two systems work in harmony and I believe that they will achieve that purpose.

Notes for editors

  1. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

  2. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.

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