Podcast
Questions and Answers
What are the factors to be considered in determining whether behavior is likely to give a regular user a false impression about investments?
What are the factors to be considered in determining whether behavior is likely to give a regular user a false impression about investments?
Which factor related to the conduct of behavior provides insight into its potential to mislead users?
Which factor related to the conduct of behavior provides insight into its potential to mislead users?
Why is the identity of the person responsible for observed behavior considered as a factor?
Why is the identity of the person responsible for observed behavior considered as a factor?
What role does the extent and nature of visibility or disclosure of activity play in determining behavior's impact?
What role does the extent and nature of visibility or disclosure of activity play in determining behavior's impact?
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How do the legal and regulatory requirements of a market or platform contribute to evaluating behavior?
How do the legal and regulatory requirements of a market or platform contribute to evaluating behavior?
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What aspect of a market or auction platform structure is relevant in assessing behavior's impact on users?
What aspect of a market or auction platform structure is relevant in assessing behavior's impact on users?
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Why is it important to consider the experience and knowledge of users when evaluating behavior?
Why is it important to consider the experience and knowledge of users when evaluating behavior?
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How does the position of the person responsible for behavior affect the assessment of their actions?
How does the position of the person responsible for behavior affect the assessment of their actions?
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Study Notes
Market Abuse Regime and Code of Market Conduct
- Applicable to all individuals seeking guidance on market abuse issues.
- Part of the UK's implementation of the Market Abuse Directive and related EU legislation.
- Assists in determining whether specific behaviors qualify as market abuse.
FCA Guidelines and Market Conduct
- References to the Act shall be interpreted according to RAP regulations regarding qualifying investments on prescribed auction platforms.
- Provides clarity for individuals aiming to:
- Avoid engaging in market abuse.
- Determine if they must report suspicious transactions to the FCA under SUP 15.10.
Description of Market Abuse Behaviors
- Contains descriptions of behaviors deemed by the FCA as either market abuse or acceptable market practices relevant to specific markets.
- Not an exhaustive list; interpretations should consider the elements defined by the Act.
Considerations for "Inside Information"
- Indicators that behavior may not be considered "on the basis of" inside information include:
- Decisions made before acquiring such information.
- Dealing to comply with pre-existing legal or regulatory obligations.
- In organizations, if individuals with inside information were not involved in the decision-making process.
Factors of Relevant Information
- Reliability of information is key:
- Proximity of the information provider to the original source matters.
- Differentiation between new information and what is generally available can indicate relevance.
- Predictions about future developments that may not yet require disclosure but imply future announcements enhance information relevance.
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Description
Test your knowledge on ESMA guidelines related to automated trading, direct electronic access, and the Code of Market Conduct. This quiz covers topics mentioned in ESMA regulations and FCA references under the market abuse regime.
