Week 2 - Market Abuse

Question 1

What’s the Market Abuse Regulation for?

name 2 reasons

Answer 1

Increases market integrity
- Investor protection
- Makes market attractive

Question 2

What’s insider dealing?

Answer 2

An individual having price sensitive info due to position either:

• Using that info themselves
• Encouraging someone else to telling others aside from the proper performance of their duties

Question 3

What’s inside info?

Answer 3

Info that:

• Relates to a specific company
• Has not been made public
• If made public would have a large effect on the price

Question 4

When is somebody an insider?

Answer 4

• Having inside info via a title
• Access to info via employment

Question 5

Name the 2 consequences of Market Abuse

Answer 5

• Unlimited fine issued by FCA
• Public reprimand by FCA

Question 6

Consequences of insider dealing

Answer 6

Summary Conviction (Less Serious Offence)
- Limited Fine
- Max 6 months imprisonment

Indictment (More Serious Offence)
- Unlimited fine
- Max 10 years imprisonment