10 Penalties and Sanctions

Subject(s):

Insider dealing — Misleading impressions — Misleading statements — Market abuse — Sanctions and monetary obligations — UK Financial Conduct Authority (FCA)

This chapter considers the penalty and sanctions regime as it applies to cases of market misconduct in the UK. This regime has a dual purpose. First, it serves the Financial Conduct Authority's ‘integrity objective’: that is, the ‘operational objective’ of protecting and enhancing the integrity of the UK financial system, which includes the UK financial system not being affected by insider dealing, unlawful disclosure of inside information, market manipulation and market abuse. Secondly, the regime gives effect to the Market Abuse Regulation (MAR), which identified in recital 70 that ‘[a] sound prudential and conduct of business framework for the financial sector should rest on strong supervisory, investigation and sanction regimes... supervisory authorities should be ... able to rely on equal, strong and deterrent sanction regimes against all financial misconduct, and sanctions should be enforced effectively’.