On 9 September 2009, the Office of Public Sector Information (OPSI) published The Financial Services and Markets Act 2000 (Amendment) Regulations 2009 (the Regulations).
Section 96B(2) of the Financial Services and Markets Act 2000 (FSMA) was one of the provisions inserted into Part 6 of FSMA to implement the Market Abuse Directive (MAD) and the implementing Commission Directive. It implemented Article 6.4 of MAD, ensuring that the FSA has power to ensure that investors have information about the trading in the shares of companies by the senior management (and those closely connected to them) of those companies.
Section 96B(2)(a) of FSMA defines a "connected person" in relation to someone discharging managerial responsibilities within an issuer by reference to section 346 of the Companies Act 1985 as this was sufficient to satisfy the UK’s obligation under Article 6.4 of MAD and the implementing Commission Directive.
Paragraph 50 of Schedule 3 to the Companies Act 2006 (Commencement No.3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 expressly provided that the repeal of section 346 did not affect section 96B(2)(a) of FSMA.
The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (the 2009 Order) subsequently amended section 96B(2) of FSMA so that "connected persons" would be defined by reference to section 252 of the Companies Act 2006 with effect from 1 October 2009.
The Regulations restore the definition of "connected person" applying before the amendment made in the 2009 Order. The Regulations will come into force on 1 October 2009. View The Financial Services and Markets Act 2000 (Amendment) Regulations 2009, 9 September 2009