In December 2011, HM Treasury published regulations extending the sunset clauses affecting two aspects of the market abuse regime to 31 December 2014.

By way of background, when the UK implemented the Market Abuse Directive in 2005, the definition of market abuse in the Financial Services and Markets Act 2000 (FSMA) was broader than required by the Directive. The super-equivalent provisions are set out in section 118(4) (misuse of information) and 118(8) (behaviour likely to give a false or misleading impression or likely to distort the market) of FSMA.

These provisions had originally been due to expire, pursuant to so-called sunset clauses, on 30 June 2008. The latest regulations extend the expiry date for sections 118(4) and 118(8) to 31 December 2014.

View The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2011 (2 page pdf).

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