On February 7, the UK Treasury launched a consultation on the UK’s Market Abuse regime. It focuses on areas where the UK regime is super-equivalent (i.e. imposes additional requirements) to those under the EU's 2003 Market Abuse Directive (MAD). The UK regime was first introduced in 2001 and was amended in 2005 upon the UK implementation of the MAD.
The UK currently has a wider definition of market abuse than that established in the MAD and the purpose of this consultation is to enable the Treasury to assess whether that wider definition remains justified. In 2005, the UK introduced “sunset clauses” on some elements of the UK regime that were super equivalent to the MAD. The provisions that are subject to such “sunset clauses” will fall away on June 30 unless they are extended. The EU will also review the MAD during 2008.
The consultation closes on May 7.