FCA Consultation Paper on the implementation of the Market Abuse Regulation in the UK

On November 5, 2015, the UK’s Financial Conduct Authority (“FCA”) published a consultation paper setting out proposed reforms to the FCA Handbook (the “Handbook”) arising from the Market Abuse Regulation (“EU MAR”). The consultation closes on February 4, 2016, following which the FCA will publish a Policy Statement setting out the final Handbook provisions.

Because EU MAR is a Regulation, which will apply directly in the UK with no need for its implementation through national legislation, it will be necessary to repeal or modify existing domestic provisions that conflict with EU MAR. In addition, the Handbook will no longer contain rules relating to the application of the market abuse regime. Instead, the provisions relating to market abuse will be framed as guidance.

This memorandum summarizes the key changes to the Handbook proposed by the FCA as a result of the EU MAR implementation and their practical implications.