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Corporate Finance
Market abuse regime – Extension of expiry date for sunset clauses
On 6 June 2008, HM Treasury published its feedback statement on the responses to its February 2008 consultation on certain provisions of the UK's market abuse regime.
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 that required by the Directive. The market abuse super-equivalent provisions are set out in sections 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 are known as the "sunset clauses" and had been due to expire on 30 June 2008. In its February consultation paper, the Treasury proposed to extend the sunset clauses until 31 January 2010 because the EU is reviewing the entire market abuse regime this year and may make its own changes. The Treasury reasoned that two sets of changes in a short period of time would pose unnecessary costs on industry. In its June feedback statement, the Treasury took into account the responses to its consultation, and shortened the proposed extension of the expiry date of the sunset clauses to 31 December 2009.
For the full text of the feedback statement please click here.
30 June 2008
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