Due Diligence Questionnaires and Checklist | Introduction and Market Abuse | Mortgage Conduct of Business MCOB | Template for FCA Applications and Authorised Firms

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Due Diligence Questionnaires

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10.4 Due Diligence Checklist

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11 Market Abuse

11.1 Introduction

Certain types of behaviour, such as insider dealing, and market manipulation can amount to market abuse. Firms must have safeguards in place to identify and reduce the risk of market abuse and other financial crime. On July 3^rd, 2016, the new Market Abuse Regulations (EU) 2014/596/EU came into effect and replaced the previous Market Abuse Directive. In light of the new regulations, the FCA have updated their MAR sourcebook and have added extensive new rules and guidelines to their DTR module.

The Market Abuse Regulation (MAR) have been designed to strengthen the existing UK market abuse framework by extending its scope to new markets, new platforms and new behaviours. Preventing, detecting and punishing market abuse has been made a high priority for the FCA and is one of their main statutory objectives of protecting consumers, enhancing market integrity and promoting competition.

Firms are expected to work closely with the financial regulator, law enforcement agencies and within the new regulations and ESMA Technical Standards to combat market abuse and other related financial crime. MAR makes insider dealing and market manipulation civil offences and now gives the FCA the powers and responsibilities for preventing and detecting market abuse.