ABSTRACT
This chapter considers background to the policy of criminalizing and regulating market abuse with particular emphasis on the civil MAR brought in by the Code of Market Conduct, plus an evaluation of the financial institutions and regulatory bodies. It looks at the success of criminal and civil sentencing options and practices. The chapter reviews the new Conservative/Liberal Democrat coalition announced major reforms to bank and financial services regulation, with much of the Financial Services Authority (FSAs) role in supervising banks and the maintenance of financial stability being moved to the Bank of England. The term market abuse covers both the use of inside information and market manipulation. Market abuse is defined both in statute and in a European Union (EU) Market Abuse Directive (MAD). The civil market abuse regime is primarily enforced by the FSA as a result of its statutory objective to reduce financial crime under the Financial Services and Markets Act (FSMA) 2000.
