C1 Part VIII Penalties for Market Abuse

Annotations:
Modifications etc. (not altering text)

Statement of policy

124 Statement of policy.

1

The F1FCA must prepare and issue a statement of its policy with respect to—

a

the imposition of penalties under section 123; and

b

the amount of penalties under that section.

2

The F1FCA's policy in determining what the amount of a penalty should be must include having regard to—

a

whether the behaviour in respect of which the penalty is to be imposed had an adverse effect on the market in question and, if it did, how serious that effect was;

b

the extent to which that behaviour was deliberate or reckless; and

c

whether the person on whom the penalty is to be imposed is an individual.

3

A statement issued under this section must include an indication of the circumstances in which the F1FCA is to be expected to regard a person as—

a

having a reasonable belief that his behaviour did not amount to market abuse; or

b

having taken reasonable precautions and exercised due diligence to avoid engaging in market abuse.

4

The F1FCA may at any time alter or replace a statement issued under this section.

5

If a statement issued under this section is altered or replaced, the F1FCA must issue the altered or replacement statement.

6

In exercising, or deciding whether to exercise, its power under section 123 in the case of any particular behaviour, the F1FCA must have regard to any statement published under this section and in force at the time when the behaviour concerned occurred.

7

A statement issued under this section must be published by the F1FCA in the way appearing to the F1FCA to be best calculated to bring it to the attention of the public.

8

The F1FCA may charge a reasonable fee for providing a person with a copy of a statement published under this section.

9

The F1FCA must, without delay, give the Treasury a copy of any statement which it publishes under this section.

125 Statement of policy: procedure.

1

Before issuing a statement of policy under section 124, the F1FCA must publish a draft of the proposed statement in the way appearing to the F1FCA to be best calculated to bring it to the attention of the public.

2

The draft must be accompanied by notice that representations about the proposal may be made to the F1FCA within a specified time.

3

Before issuing the proposed statement, the F1FCA must have regard to any representations made to it in accordance with subsection (2).

4

If the F1FCA issues the proposed statement it must publish an account, in general terms, of—

a

the representations made to it in accordance with subsection (2); and

b

its response to them.

5

If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the F1FCA, significant, the F1FCA must (in addition to complying with subsection (4)) publish details of the difference.

6

The F1FCA may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

7

This section also applies to a proposal to alter or replace a statement.